Comparison: Betterment vs. Wealthfront
The robo-advisor industry was pioneered by Betterment and Wealthfront, and while the companies started out with very similar models, they’ve slowly made changes to differentiate themselves.
The biggest deciding factor at this point: If you want to work with a human, you’ll find that option only at Betterment. If you’re after only digital advice, Wealthfront’s offering may be more robust.
Other considerations include the type of account you plan to open, investment portfolios and key features. Here’s a quick look at both services to help you choose the best match for your money.
Betterment is best for:
- Hands-off investors.
- Retirement investors.
- Users with low balances.
- Those who want automatic rebalancing.
- Users who like goal-based tools.
Read our full review of Betterment.
Betterment at a glance
Account minimum | $0 for Betterment Digital, $100,000 for Betterment Premium. |
Account management fee | 0.25% for Betterment Digital, 0.40% for Betterment Premium. |
Investment expense ratios | Average expense ratio of 0.11%. |
Account fees (annual, transfer, closing) | None. |
Portfolio mix |
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Accounts supported |
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Tax strategy |
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Automatic rebalancing |
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Human advisor option |
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Savings account/cash management option |
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Customer support options (includes website transparency) |
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Wealthfront is best for:
- Hands-off investors.
- Taxable accounts.
- Free financial tools, even if you don’t have a Wealthfront account.
- 529 college savings plan management.
Read our full review of Wealthfront.
Wealthfront at a glance
Account minimum | $500 for investment accounts, $1 for cash accounts, $0 for financial planning. |
Account management fee | 0.25% (first $5,000 managed free for NerdWallet readers). |
Investment expense ratios | ETF expense ratios average 0.08%. Portfolios that include the Wealthfront Risk Parity Fund have an average expense ratio of 0.11%. |
Account fees (annual, transfer, closing) | None. |
Portfolio mix |
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Accounts supported |
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Tax strategy |
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Automatic rebalancing | Free on all accounts. |
Human advisor option | None. |
Savings account/cash management account | The Wealthfront Cash Account offers high interest checking. The cash account offers a competitive yield and is covered by up to $1 million in FDIC insurance. The account requires just $1 to get started. |
Customer support options (includes website transparency) | Licensed product specialists (have Series 7 & 66 and some are CFAs/CFPs/CPAs) available to provide support or product information via phone or email (they do not make recommendations or give advice). Phone support Monday-Friday 8 a.m. to 5 p.m. Pacific; and all emails are responded to within one business day. |