How Betterment, Wealthfront, Acorns and Stash Compare

Advisors, Brokers, Investing, Investing Strategy
betterment wealthfront acorns stash

With the rise of robo-advisors and investment apps, you have more options for growing your money today than a few years ago.

Looking for a hands-off approach to investing? Betterment and Wealthfront, pioneers and leaders in the robo-advisor industry, may be a good fit. (If you’re unsure what these services offer, see our primer on robo-advisors.)

Prefer to have your investments accessible at your fingertips? Acorns and Stash, two popular apps, help you navigate the world of investing from your phone and offer unique approaches to investing that you won’t find at most stockbrokers.

Which is best? That all depends on what you want in an advisor, how actively you’ll manage your investments and how much, or how little, you have to invest. Betterment, Wealthfront, Acorns and Stash each offer a unique spin on managing your investments, with some relative strengths and weaknesses, depending on your goals.

At a glance

bettermentsmall
Wealthfront
Acorns
Stash
Account management fees
0.25% to 0.40%, depending on plan0.25%; first $10,000 is managed free ($15,000 for NerdWallet readers)$1/month for accounts under $5,000; 0.25% for accounts of $5,000 or more$1/month for accounts under $5,000; 0.25% for accounts of $5,000 or more
Account minimum
$0$500$0 to open account; $5 required to start investing$5
Account types
  • Individual and joint nonretirement accounts
  • Roth, traditional, SEP and rollover IRAs
  • Trusts
  • Individual and joint nonretirement accounts
  • Roth, traditional, SEP and rollover IRAs
  • Trusts
  • 529 college savings plans
Individual nonretirement accounts Individual nonretirement accounts
Portfolio
Exchange-trade funds from up to 12 asset classes. Socially responsible investing portfolio available.ETFs from 11 asset classesETFs from six asset classesOver 30 ETFs available
Customer support
  • Phone and email support; live chat
  • All customers can consult a financial advisor via in-app messaging
  • Betterment Premium customers get access to team of financial advisors via phone
Phone and email supportPhone and email supportPhone and email support
Promotion
Up to one year of free management with qualifying deposit$15,000 managed free for NerdWallet readersFree for college students with a valid .edu email address for up to four years from signup dateFirst month free

Betterment, Wealthfront, Acorns and Stash all have something important in common: They’ll help you grow and manage your investments. Another notable similarity? They’re all designed for investing in exchange-traded funds.

But the similarities end there. Even Betterment and Wealthfront, NerdWallet’s top overall picks among the best online advisors, have important differences. (Read more about how these companies stack up head to head: Wealthfront vs. Betterment).

These four services vary in the amount required for investment, the types of accounts supported, tax implications and all-important fees. Here’s a look at the advantages and disadvantages of each.

Betterment

Betterment revamped its pricing and added access to financial advisors this year, two changes that help distinguish it from its peers. Among its other unique features: The company uses behavioral finance techniques to help encourage goal-setting and discourage fear-driven decisions that could hurt portfolio performance. It also lets investors buy fractional shares, so you can start investing even if you can’t afford a full share of a particular asset. Finally, Betterment offers a socially responsible investing portfolio, allowing you to align your investments with particular social causes.


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Quick facts

  • Management fee: 0.25% to 0.40%, depending on plan
  • Account minimum: $0
  • Promotion: Up to one year of free management with a qualifying deposit
Get started on Betterment's secure site

Betterment is the largest robo-advisor, but it falls short on a few key attributes. The platform doesn’t have a direct indexing tool, which is important for taxable accounts. Direct indexing lets investors buy the individual securities within an index, rather than the ETF that tracks it, and that can provide a tax advantage. Betterment also doesn’t support 529 college savings plans.

» Read NerdWallet’s full Betterment review

Wealthfront

Here’s one way to stand out from the growing crowd of robo-advisors: Offer free management on the first $10,000 invested — or first $15,000 for NerdWallet readers. Wealthfront has some important money-saving features for taxable accounts. It also offers investments beyond ETFs, including natural resources and real estate. Its direct indexing service uses individual securities to single out tax-loss harvesting opportunities, available to investors with balances over $100,000. Finally, the platform recently added management of 529 college savings plans.


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Quick facts

  • Management fee: 0.25%, but first $10,000 is free
  • Account minimum: $500
  • Promotion: NerdWallet readers can get $15,000 managed for free
Get started on Wealthfront's secure site

Wealthfront doesn’t offer access to human advisors, so it can’t compare with Betterment on that feature. Another downside is that Wealthfront doesn’t let investors buy fractional shares, which means you’ll have some money that’s not being invested. In addition, it maintains a cash balance that’s equal to the fees you’re projected to pay over the next year.

» Read NerdWallet’s full Wealthfront review

Acorns

Like squirrels gathering up nuts for winter, investors can make small investments that will add up over time with Acorns. Part robo-advisor, part automated savings tool, Acorns rounds up your purchases on linked credit and debit cards to the nearest dollar, then funnels that change into a computer-managed investment portfolio.


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Quick Facts

  • Management fee: $1/month for accounts under $5,000; 0.25% for accounts of $5,000 or more
  • Account minimum: $0
  • Promotion: College students get up to four years free

Acorns targets beginner investors; there are no management fees for four years for college students with a valid .edu email address. Its automated approach will help jump start an investment strategy even if you don’t have much money. Acorns also has a program called Found Money, where you’ll get cash back on qualifying purchases with a list of partners.

The idea of starting small is admirable, but there’s a reason Acorns targets young, beginner investors. The platform doesn’t manage any retirement accounts, only individual taxable accounts — and that means you’ll be liable to pay capital gains taxes on these investments, especially because Acorns doesn’t offer tax-loss harvesting assistance.

Finally, the fees appear to be low at first glance, but depending on the amount you have invested, it could add up to a high percentage of your assets. Those fees may not be justified by the relatively limited portfolio options.

» Read NerdWallet’s full Acorns review

Stash

Selecting investments can be overwhelming, especially for beginner investors. Stash tries to make the process more approachable, offering theme-based strategies for investing in ETFs and a selection process that’s based on the account holder’s risk tolerance and goals. In other words, it’s not quite a robo-advisor, but it’s certainly not a full do-it-yourself broker, either.


NerdWallet is a free tool to find you the best credit cards, cd rates, savings, checking accounts, scholarships, healthcare and airlines. Start here to maximize your rewards or minimize your interest rates. Anna-Louise Jackson

Quick Facts

  • Account fee: $1/month for accounts under $5,000; 0.25% for accounts of $5,000 or more
  • Account minimum: $5
  • Promotion: Free for the first month

All of Stash’s resources are easy to read and understand and are complemented by an array of educational content. Stash encourages engagement among its customers, via mission-based strategies that allow you to align your investments with your beliefs and share your investment choices via social media.

While it’s easy for beginners to navigate, Stash has some important limitations. The platform offers only individual taxable accounts, and the subscription fee for investors with low balances can be quite high as a percentage of assets. What’s more, the ETFs offered through Stash have higher average expense ratios (0.39%) compared with those offered by robo-advisors.

» Read NerdWallet’s full Stash review

Final look

Deciding which of these advisors is best for you will depend on, well, you. What works best for you may not make sense for a friend or family member, and vice versa. It’s important to be mindful of your investing goals, any tax implications you may incur from each of these services and how your various accounts will work together.

bettermentsmall
Wealthfront
Acorns
Stash
Best for
  • No minimum
  • Access to financial advisors
  • Socially responsible investing
  • Fractional shares
  • Digital retirement-planning tool
  • Taxable accounts
  • Saving for college
  • College students
  • Those who struggle to save
  • Those interested in the Found Money program
  • Investors who want guidance selecting investments
  • Thematic or impact investors
  • Fractional shares
Falls short
  • No direct-indexing tool
  • No 529 plan
  • No human advisors
  • No fractional shares
  • Cash balance requirement
  • Offers only individual taxable accounts
  • No tax-loss harvesting
  • Fees can add up to high percentage of assets
  • Offers only individual taxable accounts
  • Fees can add up to high percentage of assets
  • ETFs have high average expense ratios

Anna-Louise Jackson is a staff writer at NerdWallet, a personal finance website. Email: ajackson@nerdwallet.com. Twitter: @aljax7.