Separately Managed Account (SMA) with less than 1% Fees?

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philled82
Posts: 4
Joined: Mon Apr 12, 2021 3:58 pm

Separately Managed Account (SMA) with less than 1% Fees?

Post by philled82 »

Hi folks,

Based on my research and based on my situation, I am planning on opening a separately managed account(SMA). I expect to benefit from the stock-level tax loss harvesting compared to using ETFs, even after fees.

Most SMAs (Blackrock, TROWE, etc) require a separate financial advisor (typically with 1% fees) even though the SMAs themselves charge the financial advisor .50%.

Fidelity has index-fund based SMAs that start at .65% (and less for larger portfolios) - (this thread for more details: viewtopic.php?t=302805).

Wealthfront is also interesting at .25% fees but you can only use their standard portfolio which doesn't work for me.

Is anyone else familiar with SMA options lower than 1% fees besides these two options?
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David Jay
Posts: 14586
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: Separately Managed Account (SMA) with less than 1% Fees?

Post by David Jay »

I did some quick googling on SMAs and I just don’t get it.

Seems like a lot of cost for so-called “professional management” of TLH. But of course, most of us here on BH are DYI type investors.
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius
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