Separately Managed Accounts
A Separately Managed Account is an investment portfolio created specifically for a single investor and managed by a financial advisor or investment firm. Unlike mutual funds or ETFs, where the investor owns shares of the fund instead of the underlying securities, the securities in an SMA are owned directly by the investor.
Some SMA providers specifically permit digital assets and manage the entire investment process, from initial account opening through ongoing portfolio management.
SMAs offer customization not available when investing in mutual funds or ETFs, and thus can more closely reflect an investor’s objectives, risk tolerance and other needs. Digital assets held in an SMA are placed with a qualified custodian.
SMAs typically have higher account minimums and fees than mutual funds and ETFs.