We spent over 100 hours testing robo-advisors, opening and funding an account with each robo to acquire a true client experience and find the best robo advisors
. In this comparison, we will compare Acorns vs Betterment to see which robo-advisor is better.
First, let’s take a look at the fees of these two investment advisors. Cost is broken down into both the annual management fee charged each year as well as the expense ratios charged by the ETF holdings themselves. Both Acorns and Betterment hold a 4.50 star rating.
Looking at both robo-advisors, we can also explore their features. Betterment offers tax-loss harvesting while Acorns does not. For running predictions on retirement, clients will want to use a retirement calculator. Betterment offers an advanced retirement calculator while Acorns does not. Tracking personal financial goals can also be important. Betterment offers goal tracking while Acorns does not. Finally, the ability to import and aggregate third-party financial accounts for holistic analysis can be particularly useful. Betterment has external accounts analysis, Acorns doesn't.
Lastly, tech savvy Millennials may find it valuable to have access to customer service through phone, email, and live chat. However, not every robo-advisor offers live chat support. Both Acorns and Betterment offer live chat support.
Overall, Betterment boasts 5.00 stars versus 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.