For our Robo-Advisor Review we assessed, rated, and ranked eight different firms. Instead of relying on website information and marketing materials as most editorials do, we opened and funded an account with each robo-advisor
to acquire a true client experience. Here, we will compare Acorns vs Betterment to see which robo-advisor is best.
To start our comparison, we will take a look at the annual fees for both services. Cost is broken down into two separate buckets: the annual management fee charged for having an account and the annual fee charged for holding each ETF in the portfolio. Both Acorns and Betterment hold a 4.50 star rating.
Exploring both robo-advisor feature sets, we can also find differences. Betterment offers tax-loss harvesting while Acorns does not. For running calculations on being ready for retirement, clients will want a retirement calculator. Betterment makes an advanced retirement calculator available to clients, while Acorns does not. Some customers like to monitor their personal financial goals. Betterment makes goal tracking available to clients, while Acorns does not. Finally, an attractive feature includes providing deeper account analysis thanks to the ability to import and aggregate third-party financial accounts. Betterment has external accounts analysis, Acorns doesn't.
Lastly, more web savvy customers may find it valuable to have access to customer service through phone, email, and live chat. However, not every robo provides live chat support as an option. Acorns alongside Betterment offer live chat support.
Overall, Betterment takes the upper hand with 5.00 stars over Acorns's 4.00 stars. And, as far as individual category awards go, Betterment posted awards Best in Class - Cost, Best in Class - Investment Approach and Best in Class - Platforms & Tools, while Acorns found itself with none of these.