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REDDIT

Should I switch from my DIY ETF strategy to a financial advisor charging 1%?

P
May 4, 2025 · 16:17

Hey everyone, I’m 30 years old and have been managing my investments through a low-cost auto-trader with a 0.05% fee. I’ve only invested in broad market ETFs like VO and ITOT, and I’m pretty happy with the performance so far. Here’s a snapshot of my portfolio (screenshot included):

•Total value: $152,537
•1-year return: +8.81%
•3-year annualized: +7.41%
•5-year annualized: +10.46%
•Since inception (2018): +7.09% annualized

Recently, a financial advisor approached me with an offer: they’d take over the portfolio for a 1% annual fee, and in return, we’d shift away from ETFs into a mix of actively managed mutual funds and individual stocks. The pitch is that this new strategy would take on higher risk but also potentially greater returns.

I’m torn. I like the simplicity and low cost of my current ETF strategy, but I wonder if I’m leaving money on the table by not taking more aggressive or strategic positions under professional guidance.

Has anyone here made a similar switch? Was it worth it? Is 1% ever justified if the returns might be better? Or should I just stay the course with low-cost ETFs?

Appreciate any thoughts or personal experiences!