Thanks to opening, funding, and spending over 100 hours testing accounts with eight different robo-advisors
, we know our robos inside and out. For this review, we will compare Betterment vs Wealthfront to see which robo-advisor is better.
When it comes to financial advice and selecting an automated advisor, the total annual cost charged is significant. Most sites just look at the annual account management charge assessed. For an accurate comparison, however, you also have to take into consideration the annual management fees (expense ratios) charged by the ETF holdings themselves. We included both. Both Betterment and Wealthfront are rated 4.50 stars.
Features are also important to compare when selecting a robo-advisor. Some robos do a much better job than others with technology. Both Betterment and Wealthfront offer tax-loss harvesting. To make sure you ready for retirement and will have enough money saved, running a calculator is required. Betterment and Wealthfront both offer an advanced retirement calculator. Setting financial goals and tracking them is also a feature customers desire. Betterment and Wealthfront both offer goal tracking. Finally, syncing data from your other financial accounts (brokers, banks, etc) can open the door to deeper analysis of fees, holdings, and retirement planning. Both Betterment and Wealthfront offer external accounts analysis.
Lastly, some customers want access to customer service via web friendly methods such as live chat as a compliment to the standard phone and email options. Betterment offers live chat support while Wealthfront does not.
Overall, both Betterment and Wealthfront are rated 5.00 stars. And, as far as individual category awards go, Betterment along with Wealthfront both finished with awards Best in Class - Cost, Best in Class - Investment Approach and Best in Class - Platforms & Tools.