Marcus review: Invest in automated portfolios with as little as $5

Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

Marcus Invest Marcus Invest


Investment Types

Stock ETFs and bond ETFs

Marcus Invest Marcus Invest


Investment Types

Stock ETFs and bond ETFs

On Marcus Invest’s website

Pros & Cons

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Investment portfolios tailored toward investor risk tolerance and time horizon

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

More than 50 stock and bond ETF portfolios available

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Socially responsible and smart beta portfolio options

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Account includes strategic asset allocation and portfolio monitoring

Dash icon A dash. It often indicates an interaction to shrink a section.

App doesn’t include financial advisor access

Dash icon A dash. It often indicates an interaction to shrink a section.

Goldman Sachs Smart Beta portfolios not available to IRA account holders

Highlights

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

  • Promotion: None at this time.

Additional Reading

Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Overall rating

Is Marcus Invest right for you?

Launched on February 16, 2021, Goldman Sachs-owned Marcus Invest is best for passive, or hands-off, investors who want automated, professional guidance on their personal investment accounts or individual retirement accounts (IRAs).

You’ll need at least $5 to get started, and the investment app provides more than 50 stock ETF and bond ETF portfolios.

Headquartered in New York, Marcus Invest has been in business since February 16, 2021. You can find more information about the company by reviewing its Form ADV.

The company provides mobile access both for iOS and Android users.

Marcus Invest vs. Ellevest

Marcus Invest and Ellevest are both automated investing platforms offering personalized ETF portfolios for hands-off investors. Key differences to note between the platforms, however, include fees and account features.

Ellevest has a $0 minimum requirement, but you’ll need at least $5 to get started with Marcus. In addition, while Marcus has a low fee (other popular automated accounts like Wealthfront and Betterment also offer a 0.25% fee, and you can even completely skip out on fees with platforms like SoFi automated investing), Ellevest’s flat monthly fees generally make it a cheaper option for those with larger balances.

In addition, Marcus Invest gives you access to multiple Goldman Sachs professional investment strategies, but it doesn’t offer one-on-one financial advisor support like Ellevest.

Marcus Invest vs. Betterment

Like Marcus and Ellevest, Marcus and Betterment also serve those in favor of automated portfolios. Both use stock ETFs and bond ETFs, and both offer socially responsible investing portfolios.

But Betterment’s standard account requires no minimums for newcomers. Betterment also offers access to financial advisors, and it provides a wider range of account types. 

Ways to invest with Marcus Invest

Automated investing accounts

Marcus Invest offers three account types: individual investment accounts, joint investment accounts, and individual retirement accounts (IRAs). But this account selection falls short compared to other platforms like Betterment and Wealthfront. Both Betterment and Wealthfront also have individual and joint accounts, traditional IRAs, Roth IRAs, and SEP IRAs. But they take it a step further by offering trusts (Betterment additionally offers an inherited IRA, while Wealthfront allows automated 529 plans).

In addition, the $5 account minimum and 0.25% management fee grant you access to 50 different stock and bond-ETF portfolios.

Marcus Invest says its management fee covers asset allocation, all trade commissions, portfolio monitoring, portfolio rebalancing, and ongoing management. Fees also include ETF expense ratios and ancillary fees.

The investment app’s portfolios rely on three key investment strategies:

  • Goldman Sachs Core
  • Goldman Sachs Impact
  • Goldman Sachs Smart Beta

Goldman Sachs Core portfolios invest your money in market-cap index tracking ETFs that include a blend of investment grade bonds, US and international stocks, and real estate securities. 

If you’re looking for socially responsible or impact investing options, the Goldman Sachs Impact portfolio could be a good fit for you. According to Marcus Invest’s website, these portfolios invest in funds that meet environmental, social, and governance (ESG) criteria. 

Finally, the Goldman Sachs Smart Beta portfolios strive to provide higher long-term returns through Goldman Sachs ETFs.

Automated retirement accounts

You can also automate your individual retirement savings. Though the investment platform doesn’t offer employer-sponsored retirement plans like 401(k)s or 403(b)s, it provides Roth IRAs, traditional IRAs, and SEP IRAs.

With the Roth and traditional IRAs, you can contribute up to $6,000 in 2022 (plus an additional $1,000 if you’re 50 or older). If you’re self-employed, you can open a Marcus Invest SEP IRA and contribute up to $61,000 in 2022 (the 2021 contribution limit was $58,000).

It’s also important to note that you can only use the Goldman Sachs Core and Goldman Sachs Impact strategies for IRAs.

Marcus Invest is part of Marcus by Goldman Sachs, a Goldman Sachs-owned company. The Better Business Bureau has given Marcus by Goldman Sachs an A rating. Since the bureau’s ratings range from A to F, this indicates that the company has a successful track record when it comes to customer interaction.

It’s also worth noting, however, that the BBB’s ratings don’t necessarily mean a company will exhibit trustworthiness or perform well. For this reason, it’s wise to conduct your own research too.

Since Marcus Invest launched on February 16, 2021, it hasn’t been in business long enough to collect any major lawsuits or public scandals. As for Marcus by Goldman Sachs, its record also appears to be free of any scandals within the last few years.

Marcus by Goldman Sachs has closed more than 280 complaints in the last 12 months, and it doesn’t have any unresolved complaints, according to BBB data.

Marcus Invest — Frequently asked questions (FAQ)

Marcus Invest is an automated investing account that builds a personalized ETF portfolio for you. Upon receiving your investing goals, preferences, risk tolerance and time horizon, the robo-advisor will create your portfolio. It also regularly monitors and rebalances your assets to make sure you’re on track to meet your goal(s).

Depending on the portfolio, Marcus Invest may use Goldman Sachs ETFs or other third-party ETFs. 

Yes. Marcus Invest, a Goldman Sachs company, has a high rating with the Better Business Bureau, and Goldman Sachs & Co. LLC provides its investment advisory and brokerage services. Goldman Sachs & Co. LLC is registered with the SEC, and it’s a member of the Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC).

Rickie Houston, CEPF

Wealth-Building Reporter

Rickie Houston is a wealth-building reporter for Business Insider, tasked with covering brokerage products, investment apps, online advisor services, cryptocurrency exchanges, and other wealth-building financial products. He is also a Certified Educator in Personal Finance (CEPF).
Previously, Rickie worked as a personal finance writer at SmartAsset, focusing on retirement, investing, taxes, and banking topics. He’s contributed to stories published in the Boston Globe, and his work has also been featured in Yahoo News.
He graduated from Boston University, where he contributed as a staff writer and sports editor for Boston University News Service.
Learn more about how Personal Finance Insider chooses, rates, and covers financial products and services »


Read More