Betterment vs Wealthfront - How To Decide

The short answer is that both robo advisors have very similar investing strategies based on modern portfolio theory, but there are minor differences in their feature sets as well as their fee structure. You should select the service that meets your needs and minimizes your fees based on your initial deposit amount.

Enter your anticipated initial deposit amount to determine which is better for you!

My initial deposit is:


Advantages of Betterment

  • Has the ability to let you specify multiple personal savings goals simultaneously. This way you can set aside money for retirement, a new house, and a wedding ceremony through different goal funds and track their progress independently.

  • Offers a strong personalization feature called "RetireGuide" that customizes a dynamic investment plan based on your unique situation by asking you questions about your financial scenario and using those (20+) pieces of information to generating a diversified portfolio based on your needs.

  • Recently came out with financial account aggregation, which allows you to sync all your financial accounts so you can track your total net worth, identify idle cash, and provide insight into investment allocation and account fees.

Check out Betterment

Or read our detailed Betterment review here.

Advantages of Wealthfront

  • Has a free portfolio analysis tool called Portfolio Review based on four factors: fees, taxes, cash drag, and diversification and generates a customized report.

  • Provides with your first $10k free of fees and incentivizes you to invite friends and family with $5000 in free management for each referral on top of the free $10k.

  • Offers increased asset allocation choices including a REIT (Real Estate Investment Trust) and natural resources ETF (exchange traded fund) as well as a single-stock diversification service so you can have increased portfolio diversification.

  • Supports direct indexing for accounts over $100k which reduces fees further and increases tax loss harvesting opportunities.

Check out Wealthfront

Or read our detailed Wealthfront review here.

Features of Both Wealthfront and Betterment

  • Automated Asset Allocation- both automatically rebalance your portfolio based on your risk profile.
  • Supported Account Types- both robo advisors have standard taxable accounts, all IRAs including traditional, Roth, SEP, and Rollover IRAs, as well as joint and trust investment accounts.
  • Tax-Loss Harvesting- both include this valuable service that ensures your losing trades get a tax break for accounts of any amount.
  • Referral Program- both offer referral programs for introducing friends and family to the service. Betterment gives you a free month for one referral and a free year for three referrals with no limit; Wealthfront gives you an additional $5000 managed for free per referral.
  • No Cash Holdings- neither holds your assets in cash, instead investing whatever you deposit into securities.
  • No External Investments- neither robo advisor supports any investments outside of their offerings.
  • No Guarantee of Value- since both platforms are investment accounts, both have the risk of loss and are not FDIC insured like a bank account.

  • Robo Advisor



    Minimum Deposit$0$500
    Annual Fee
    Account ValueAnnual Fee
    $0 - $10,0000.35% 0
    $10,000 - $100,0000.25%
    0 With $100/month minimum autodeposit or $3/month without autodeposit
    Account ValueAnnual Fee
    $500 - $10,0000%
    Year Founded20072008
    Assets Under Management$5.8 Billion$2.61 Billion
    Direct Indexing

    Wealthfront enables direct indexing for accounts with a minimum of $100,000
    Tax Loss Harvesting

    Fractional Shares

    Human Advisors
    Betterment provides a free human advisor for accounts over $500,000

    Single Stock Diversification

    Taxable Accounts

    401k Plans

    IRA Accounts

    Roth IRA Accounts

    SEP IRA Accounts

    Trust Accounts

    529 Plan Accounts

    Sign UpCheck out BettermentCheck out Wealthfront

    Assets Under Management

    Betterment recently overtook Wealthfront in terms of total assets under management as you can see from the chart below.

    Betterment vs wealthfront aum