Betterment vs. Vanguard: 2025 Comparison

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.

The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

Updated Nov 25, 2025

Written by

Head of Content, Investing & Taxes

+ more

SOME CARD INFO MAY BE OUTDATED

This page includes information about these cards, currently unavailable on NerdWallet. The information has been collected by NerdWallet and has not been provided or reviewed by the card issuer.

One question facing robo-advisors like Betterment: If these services are simply building portfolios out of index funds and exchange-traded funds — primarily from Vanguard — why wouldn’t investors just go straight to the source?

Vanguard has heard that question, of course. That may be one reason why it has its own offerings, including online financial advisor Vanguard Personal Advisor and a digital, lower-cost robo-advisor, Vanguard Digital Advisor.

The below comparison focuses on how Betterment stacks up to Vanguard Personal Advisor. But if you're interested in Vanguard's robo-advisor, we have a full review of that here.

NerdWallet rating

Learn more

on Betterment's website

Betterment is best for:

Hands-off investors.
Retirement investors.
Those who want automatic rebalancing.
Users who like goal-based tools.

Betterment at a glance

Reviewed: Oct. 2025

Period considered: Aug. - Oct. 2025

Paid non-client promotion.

Account minimum	$0 ($10 to start investing).
Account management fee	0.25% annual fee on balances over $20,000 or if you set up recurring monthly deposits totaling $250 or more. Otherwise, $4 per month.
Investment expense ratios	Expense ratios of 0.04% to 0.11% for Betterment Core Portfolio.
Account fees (annual, transfer, closing)	$75 fee to transfer investments out of Betterment. No fee for cash withdrawals.
Portfolio mix	Core Portfolio uses ETFs from 12 asset classes. The portfolio mixes are well-diversified. Clients who want exposure to non-market correlated assets like real estate investment trusts (REITs) and commodities can obtain access through Flexible Portfolio. Crypto ETF portfolio consisting of Bitcoin and Ethereum ETFs. New in 2025, Betterment clients can now buy and sell individual stocks and ETFs.
Socially responsible portfolio options	Three socially responsible investing portfolio options: Broad Impact, Climate Impact, and Social Impact.
Accounts supported	Individual and joint taxable brokerage accounts. Roth, traditional, inherited, rollover and SEP IRAs. Trusts. Ability to link external accounts for better-informed advice (but not direct management).
Tax strategy	Tax-loss harvesting*. Tax-Coordinated Portfolio (asset location) tool. Tax Impact Preview tool. Charitable giving tool.
Human advisor option	Betterment Digital doesn't offer access to financial advisors and no longer offers an advice package for purchase. Betterment Premium includes access to a team of financial advisors.
Savings account/cash management option	Cash Account** with no fees or minimum balance requirements, unlimited transfers and FDIC coverage of up to $2 million in individual accounts or up to $4 million in joint accounts at program banks.
Customer support options (includes how easy it is to find key details on the website)	Phone support Monday-Friday 9 a.m. - 8 p.m. Eastern time. Email support and questions also answered through social media.
IRA match	No IRA match offered.
Read disclosures Read disclosures * Betterment does not provide tax advice. TLH is not suitable for all investors. Learn More. ** Annual percentage yield (variable) is 3.50% as of 10/31/25. $10 min deposit. FDIC insurance provided by program banks subject to certain conditions. Cash Reserve offered by Betterment LLC and requires a Betterment Securities brokerage account. Betterment is not a bank. Learn More.

» Read our full review of Betterment

NerdWallet rating

Learn more

on Vanguard's website

Vanguard Personal Advisor is best for

Access to a team of financial advisors.
Comprehensive financial planning.
Larger account balances.

Vanguard Personal Advisor at a glance

Reviewed: Oct. 2025

Period considered: Aug. - Oct. 2025

Account minimum	$50,000.
Account management, planning or subscription fee	For an all-index investment option, Personal Advisor clients pay a net advisory fee of 0.30%. Clients with an ESG or active/index investment options may pay an advisory fee ranging from 0.25% to 0.27% or 0.26% to 0.35%, respectively.
Advisor access and credentials	Unlimited appointments over phone, email or video. Clients can also reach their advisors through Vanguard's mobile app. Most advisors are certified financial planners, and some have additional credentials (e.g., CFA, CTFA, ChFC). Investors with account balances under $500,000 get a team of advisors; investors with balances of $500,000 or more get a dedicated advisor.
Financial planning services	Can advise and create a custom portfolio for a variety of situations, such as saving for retirement, college or a family vacation home. Services include: budgeting, debt management, home purchase and real estate investments, insurance needs, education planning, marital asset considerations, company stock options, alternative investments, retirement savings and drawdown strategies, Roth conversion strategies, Social Security and Medicare, small business continuity, charitable gifting, estate planning, generational wealth transfer, and more. Clients also have access to a number of digital tools.
Investment expense ratios on portfolios	Average expense ratio is 0.04%.
Portfolio construction	Portfolios are constructed on a client-by-client basis with low-cost. Personal Advisor clients can use a wide variety of funds in their portfolios, including all-index, ESG, tax-exempt fixed income, active fixed income, and active equity funds. Based on the client's existing holdings and tax liability, the portfolio may be constructed to accommodate previously held non-Vanguard investments. Clients have access to the Vanguard Cash Plus account — a self-directed account that offers a competitive APY, access to FDIC insurance and additional options including a dedicated routing and account number, direct deposit and bill pay. Private equity is also available to Personal Advisor investors who meet qualification and suitability requirements.
Brokerage options	Clients must move money to Vanguard but can keep outside investments if there are embedded gains or other reasons to do so.
Accounts supported	Individual and joint brokerage accounts. Roth, traditional, rollover, SEP and SIMPLE IRAs. Trusts. Vanguard record-kept 401(k)s plans. Personal Advisor will consider and provide guidance for other account types (e.g., 529s, UGMA, UTMA, non-Vanguard record-kept 401(k)s, and spousal accounts), but does not directly manage them.
Tax strategy	Assets are allocated strategically among taxable and tax-advantaged accounts to optimize for taxes. Tax-loss harvesting Tax-exempt municipal bonds. Minimum tax cost basis method.
Customer support options (includes how easy it is to find key details on the website)	Customer support is available Monday through Friday, 8 a.m. to 8 p.m. Eastern time. Ability to schedule appointments with an advisor at any time.

» Read our full review of Vanguard Personal Advisor

» Want to check out other providers? See our top picks for robo-advisors.

Article sources

NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines.

Methodology

How do we review brokers and robo-advisors?

All NerdWallet reviews and lists of the best investing products are created by our editorial team of full-time writers and editors, independent of any business relationships. In this case, our investing team's comprehensive review process evaluates and ranks the largest U.S. brokers and robo-advisors. Our aim is to provide an independent, balanced assessment of investment accounts to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.

We collect data directly from providers through detailed questionnaires, and conduct first-hand testing and observation through provider demonstrations. The questionnaire answers, combined with demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across more than 20 factors. The final output produces star ratings from poor (one star) to excellent (five stars).

For more details about the categories considered when rating providers and our processes, read our full broker ratings methodology and our full robo-advisor ratings methodology