Investing with Merrill Edge gives access to powerful tools, research from Bank of America, and an easy-to-navigate platform. But beyond the basics—stocks, ETFs, and mutual funds—Merrill Edge offers less obvious investment options that can truly diversify your portfolio and unlock better long-term returns. Many investors scroll past these opportunities simply because they’re not as widely talked about.
Today, let’s dive into the under-the-radar investment choices within Merrill Edge that both new and seasoned investors should know about.
1. Managed Portfolios by Merrill
Most investors know Merrill Edge for self-directed trading—but did you know you can also access professionally managed portfolios?
✨ What it is:
A team of experts builds and manages a diversified portfolio for you, based on your risk tolerance and goals.
🔹 Why it’s overlooked: Self-directed investors often assume managed portfolios are too expensive or only for wealthy clients—yet they can be cost-efficient.
🔹 Key benefits:
- Automatic rebalancing
- Professional risk management
- Personalized investment allocation
This is ideal if you want professional oversight but don’t have the time or confidence to manage every trade yourself.
2. Fixed Income & Bonds
Bonds may not be as shiny as growth stocks, but they’re powerful tools when used right.
✨ Inside Merrill Edge:
You can access a wide range of fixed-income securities, including:
- Treasury bonds
- Municipal bonds
- Corporate bonds
- CDs (Certificates of Deposit)
🔹 Why investors overlook bonds: Bonds don’t offer the excitement of double-digit returns, so growth-focused investors skip them.
🔹 Smart use case:
- Adding stability to your portfolio
- Generating predictable income
- Reducing overall portfolio volatility
Especially in uncertain markets, fixed income can act as a shock absorber when equities swing.
3. Options Trading Tools
Most investors associate Merrill Edge with simple buy-and-sell orders. But the platform also supports options trading—a versatile strategy many shy away from.
✨ What you can do with options here:
- Generate income with covered calls
- Hedge existing positions
- Trade spreads and other strategies
🔹 Why it’s overlooked:
Options can feel intimidating at first, so newer investors avoid them altogether.
🔹 The opportunity:
With basic education and risk management, options can help you:
✔ Improve income
✔ Reduce downside risk
✔ Capitalize on market volatility
If you’re curious but cautious—start small and learn as you go.
4. Sustainable Investing & ESG Portfolios
Environmental, Social, and Governance (ESG) investing is more than a trend—it’s a growing demand from investors who want their money to reflect their values.
✨ Merrill’s ESG options include:
- ESG-rated mutual funds
- Sustainable ETFs
- Theme-based investment strategies
🔹 Why investors miss this:
Some assume socially responsible investing means sacrificing returns—which isn’t necessarily true.
🔹 Why it matters:
ESG investing gives you the power to align your capital with issues you care about, from climate action to corporate governance.
This can be a financially sound and value-based strategy.
5. Dividend Reinvestment Plans (DRIPs)
Dividends may seem basic, but what many investors overlook is the power of automatic reinvestment.
✨ What DRIPs do:
Instead of taking dividend payouts as cash, your account reinvests them to buy more shares automatically.
🔹 Why it’s overlooked:
Dividends can feel small—but over time reinvesting builds wealth through compound growth.
🔹 Who benefits most:
Long-term investors looking to build wealth passively without complex trading.
6. Fractional Shares
Not every investor can afford expensive stocks like Amazon or Google—but that’s where fractional shares come in.
✨ What it means:
You can buy a slice of a share based on dollars rather than whole units.
🔹 Why it’s underrated:
Many think high-entry stocks are out of reach—but fractional investing makes them accessible to small-budget investors.
🔹 Big advantage:
You can build a diversified portfolio even with limited capital.
Final Thoughts: Expand Your Investing Horizon
Most investors stop at the first three options they see: stocks, ETFs, and mutual funds. While these are excellent foundations, Merrill Edge includes plenty of tools and opportunities that help you:
✔ Build diversified portfolios
✔ Balance risk and return
✔ Invest based on values and preferences
✔ Generate income strategically
The key is to explore beyond the obvious—and let your financial goals guide your choices.