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 Betterment vs Personal Capital 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. Betterment is a better option with a 4.50 star rating over Personal Capital's 3.00 star rating.
Looking at both robo-advisors, we can also explore their features. Betterment alongside Personal Capital offer tax-loss harvesting. For running predictions on retirement, clients will want to use a retirement calculator. Betterment and Personal Capital both offer an advanced retirement calculator. Tracking personal financial goals can also be important. Betterment and Personal Capital both offer goal tracking. Finally, the ability to import and aggregate third-party financial accounts for holistic analysis can be particularly useful. Betterment alongside Personal Capital offer external accounts analysis.
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. Betterment makes live chat support available to clients, while Personal Capital does not.
Overall, both Betterment and Personal Capital hold a 4.50 star rating. And, as far as individual category awards go, Betterment posted awards Best in Class - Cost, Best in Class - Investment Approach, Best in Class - Platforms & Tools and Best in Class - Customer Service in 2017, while Personal Capital found itself with none of these.