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Goldman Sachs (GS) Launches Automated Wealth Management Service

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Goldman Sachs (GS - Free Report) launched an automated wealth-management platform called Marcus Invest as part of a move to expand its suite of consumer financial offerings within its digital consumer lending unit, Marcus. Notably, Marcus was launched in 2016 with an aim to diversify revenues and funding sources.

The new robo-advisor service will place customer’s money into automated managed portfolios, consisting of exchange trade funds (“ETFs”) for stocks and bonds based on models developed by the bank's investment strategy group.

Investors are allowed to open an account with Marcus Invest with an investment of just $1,000. The bank will charge an annual fee of 0.35% on every account.

Interested clients can open either an individual investment account, joint investment account or an individual retirement account with Marcus Invest.

The platform will offer three strategies. First is Core, which will concentrate on a mix of U.S. and foreign stocks as well as bonds. Second is Impact, which will cater to the ESG investors, and lastly Smart Beta, which will target higher-risk assets.

With the new service, Goldman Sachs is trying to cater to more modest income bracket clients, a shift away from its traditional approach of serving the ultra-rich.

Per Goldman Sachs, “Based on your risk tolerance and timeline, we'll recommend a conservative, moderate, or growth portfolio (or somewhere in between). Then, customize your approach by selecting one of our Goldman Sachs investment strategies to determine which ETFs you'll be invested in.”

Notably, The company’s business-diversification efforts have resulted in earnings stability. Moreover, it is likely to continue to benefit from its exposure to the fast-growing ETF market.

Over the past six months, shares of the company have gained 55 % compared with 54% growth recorded by the industry.

Currently, Goldman Sachs sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

A few other top-ranked stocks from the same space are mentioned below.

Interactive Brokers Group, Inc.’s (IBKR - Free Report) earnings estimates for 2021 have been revised 22.4% upward over the past 30 days. Its shares have gained 41.5% in the past three months. Currently, the company sports a Zacks Rank #1.

Earnings estimates for LPL Financial Holdings Inc. (LPLA - Free Report) have increased 6.3% for the current year over the past 30 days. The Zacks Rank #2 (Buy) stock has gained 45.1% in the past three months.

Morgan Stanley’s (MS - Free Report) earnings estimates for 2021 have been revised 6.4% upward over the past 30 days. Its shares have gained 29.3% in the past three months. Currently, the company carries a Zacks Rank #2.

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