Chime has launched Chime Invest, an investing feature built into the Chime app that allows members to buy stocks and exchange-traded funds (ETFs) commission-free, or use an expert-managed portfolio, with no account minimums.
Addressing barriers to first-time investing
According to Chime, approximately 40% of Americans report not owning any stock, a figure the company said reflects common barriers to entering the market, including limited time to research investments, competing financial priorities, and the cost of professional advice. In a survey conducted by Chime, members cited similar concerns as reasons for not investing.
With Chime Invest, members can begin investing with as little as USD 1. For members who prefer not to manage investments directly, an expert-managed portfolio option is available, handling asset allocation on their behalf.
Product structure
Chime Invest offers two investment options within a single account. Managed Portfolios provide a diversified, expert-built portfolio tailored to a member's goals and risk profile, managed by Atomic Invest, a registered investment adviser regulated by the Securities and Exchange Commission (SEC). Managed Portfolios carry no account balance minimums, no management fee for Chime Prime members, a 0.10% annual management fee for Chime Plus members, and a 0.25% annual fee for other Chime members.
Self-directed investing allows members to select from a range of US stocks and ETFs on a commission-free basis, giving members full control over individual trades.
Securities held in members' investment accounts are protected by the Securities Investor Protection Corporation (SIPC) up to USD 500,000.
Positioning within Chime's existing product suite
Chime said the feature is integrated directly into its existing app, rather than requiring members to use a separate application. According to the company, the average Chime member engages with the app five times a day and completes more than 50 transactions per month. With the addition of Chime Invest, members can access commission-free investing, Managed Portfolios, and high-yield savings offering up to 3.75% annual percentage yield (APY) within a single platform.
Company commentary
A company official at Chime said starting and maintaining an investment habit is often the most difficult part of investing, and that integrating investing into an app members already use regularly is intended to make the transition from saving to investing more accessible.
Rollout
General access to Chime Invest will be introduced to members over the coming weeks.
