A Personal Portfolio is a brokerage account that you own, but as your discretionary investment manager, we manage it for you. Fool Wealth’s Personal Portfolios are primarily composed of actively managed, individual securities held in a brokerage account at Interactive Brokers, our exclusive custodian. Depending on the strategy, client accounts may also hold exchanged traded funds (ETFs) and options.
Personal Portfolios offer three primary benefits over other investment account types:
- Transparency - your Personal Portfolio allows you to log in to the custodian's website at any time and see each and every holding in your account and its value (value is based on prior close of business day).
- Customization – your allocation will be personalized, based on what you tell us about your specific financial situation. If you’d like to adjust the allocation to be more aggressive or more conservative than we suggest, you have the ability to modify the mix and/or weightings of strategies we’ll deploy in your account. You also have the ability to restrict specific securities, if you’re prohibited from holding or trading certain stocks.
- Ownership - Our Personal Portfolios (save for Fixed Income) are primarily comprised of actual shares of stock, not a share of a mutual fund. This means you participate directly in the capital gains/losses of the stocks you own and are not held responsible for gains you may not have participated in. When we believe that it is most efficient and appropriate to obtain exposure to an asset class using an ETF, we seek to utilize low-cost ETFs. Clients may elect an account comprised exclusively of ETFs, which we refer to in our Brochure as “Index-Based” Personal Portfolios.
Please note that whatever portion of your portfolio you dedicate to a Personal Portfolio will be managed only by the Motley Fool Wealth Management team -- you will not be able to make trades in this specific account.