Fees and minimums

No Minimum Account Size

There is no minimum account size at Portfolio Solutions. There is a minimum quarterly fee per Client Relationship. See below for details.

The Concept of Total Investment Cost

Total investment costs should to be considered when evaluating an investment advisor. Total cost includes the advisor's fee, expense ratios in the proposed mutual funds, trading costs at the custodian and possible administrative charges. Portfolio Solutions advisor fees are among the lowest in the industry, and when total costs are compared, we believe our Clients' expenses are the lowest. There are two examples of total cost scenarios below. We also provide total cost information in every investment proposal as part of our commitment to complete transparency. 

Management Fee and Minimum

Portfolio Solutions investment philosophy is based on the simple concept that costs matter. The more you pay in investment expenses, the less you make in return. We started with a revolutionary low 0.25% fee structure in 1999, and we continue to have one of the lowest management fee structures among investment advisors.

Assets Under Management (AUM) Fee per Client Relationship

0.25% per year on assets up to $10 million.*
0.10% per year on assets over $10 million.

The fee for Clients with assets over $50 million is negotiable.

*Clients with assets less than the amount needed to meet a $500 quarterly fee using the 0.25% annualized rate are billed a fixed fee of $500 per quarter in lieu of the 0.25% annualized rate. We do reserve the right not to accept an account if we believe the $500 quarterly fixed fee is excessive, i.e., if it will be more than 0.7% annualized based on the portfolio value.

Advisory fees are calculated as a percentage of assets under management, based on the average daily balance during the preceding three month period for each Client Relationship. A Client Relationship means a Client and; (a) his or her spouse or domestic partner; (b) his or her minor children; (c) a business or non-business entity over the individual and/or other person defined in (a) above exercises control; and (d) trust as to which the individual and /or other person defined in the (a) above is the sole trustee. Portfolio Solutions reserves the right to limit this Client Relationship portfolio aggregation policy where the circumstances, in its sole discretion, warrant.

Mutual Fund Expenses

Client accounts hold mutual funds and exchange-traded funds (ETFs) which have expenses which are not related to the Portfolio Solutions management fee. All funds have operating costs that are expressed as an Expense Ratio in each fund’s prospectus. In general, the funds we select for Clients’ accounts have very low expense ratios – among the lowest in the industry. The average expense ratio is 0.17 percent per year. Portfolio Solutions is not compensated by fund companies for using their products, nor are we biased in favor of one fund company or another. Our goal is to select low-cost funds that best represent each asset class. 

Trading Costs

Charles Schwab Institutional is the custodian for Client accounts and that firm is paid a commission for transactions conducted in accounts. The average commission cost per trade is $15. The total commission costs will depend on the type of securities traded and the frequency. Clients should expect to pay a few hundred dollars per year in commissions to Charles Schwab. Portfolio Solutions reserves the right to negotiate trading costs with Charles Schwab in an effort to achieve the best execution for all Clients. Portfolio Solutions is not compensated from commissions, and we have no incentive to trade in an account other than to keep a portfolio in line with its investment strategy.   

Examples of Total Cost

The following example explains the total cost of portfolio management, fund expenses and commissions. All investment proposals written for prospective Clients include a similar total cost estimate.

Please read the Portfolio Solutions ADV Part II for more information concerning management fees, mutual funds expenses and custodial trading costs.