A new automated exchange-traded fund (ETF) portfolio service launched Tuesday aims to provide investors with a cheaper alternative to traditional mutual funds, financial advisors, and even do-it-yourself (DIY) discount brokerage investing.

Toronto-based Canadian ShareOwner Investments Inc. announced the launch of its model portfolio service, which provides investors with a selection of five ETF portfolios that, it says, have been designed for long-term investors seeking to create a low-cost, diversified, portfolio. It also provides automated trade execution and portfolio rebalancing to keep the portfolios on track with the initial asset mix.

The firm says that its approach can provide investors with “significant savings” over traditional mutual funds and advisor-based solutions. “Not all investors want to pay the higher fees or have a large enough portfolio to use an expensive financial advisor or broker, but want the benefits of a well-diversified, and continually balanced portfolio,” said Bruce Seago, CEO of ShareOwner, “and with most managed solutions costing investors more than 2% per year, a savings of more than 1% per year can add significant value to an investor’s portfolio value over time.”

The firm, which is a member of the Investment Industry Regulatory Organization of Canada (IIROC), suggests that the service can also save DIY discount brokerage clients time and money, as it is highly automated so that all contributions and dividends are automatically reinvested in the ETFs that comprise an investor’s portfolio. And, it will automatically review and rebalance the portfolio to ensure that each fund remains in balance with its target allocation.

“Our automated rebalancing approach saves investors time and effort as it eliminates the need for tracking your portfolio in a spreadsheet, manually calculating adjustments and executing trades for each ETF in your portfolio,” said Seago.

In addition to the five basic model portfolios, investors can also customize and create their own portfolio with different asset classes, ETFs and target weightings.