Betterment is one of the leading robo-advisors in the market. It boasts of a large customer base of 480000 with about $ 22 billion under management. It creates high-quality portfolios out of low-fee ETFs. The fee is competitive at 0.25%. And you have the option to invest in socially responsible assets.
The pros include no minimum balance requirement and excellent customer support. And you can get human advice for an additional fee. It also offers other services such as cash management, guided investing and retirement planning.
Wealthfront, like Betterment, is a pioneer in the robo-advisory space. It has a large customer base which is growing steadily. It charges a fee of 0.25% and requires a minimum balance of $ 200. Wealthfront creates portfolios out of about 12 ETFs. Like other robo-advisors, it offers automatic rebalancing of portfolios. But unlike others, Wealthfront uses threshold-based rebalancing.
The pros include digital financial planning tools and an option to invest in socially responsible ETFs.
SigFig measures your risk profile and creates portfolios out of about 9 ETFs in different asset classes. It rebalances your portfolio periodically. It has an attractive fee structure, zero fees for the first $ 10000 invested, and after that, you pay a 0.25% fee.
Unlimited access to human advisors is a massive plus for SigFig. The company has a robust backend technology that even large traditional financial institutions like Wells Fargo and UBS use to power their robo-advisory services.
Cons include a minimum required investible amount of $2000, which is higher than many other robo-advisory funds. And it doesn’t offer cash management services.
Ellevest attempts to close the gender gap in investing. This robo-advisor caters to the unique needs of women investors who generally earn lower incomes than men with the same credentials, have a different earnings growth profile because of breaks in their careers, and live longer on average.
And, unlike other robo-advisors, Ellevest offers a monthly subscription model for a fee that starts at $1 per month. Also, there is no minimum balance requirement.
It offers a socially responsible portfolio. About 53% of the portfolio consists of ESG and impact funds. In addition to providing portfolios customized for the needs of women, it offers free career coaching. And you get additional financial advice for a premium.
Ally Managed Portfolios
Ally Managed Portfolios is the robo-advisory service offered by Ally. The fee structure is attractive: no advisory fees, no annual charges, and no rebalancing fees. It also keeps about 30% of your portfolio in cash that earns interest. Interestingly, human experts create portfolios for the service.
The pros include investment in ESG securities and 24/7 customer support.
SoFi Automated Investment
SoFi Automated Investment is the robo-advisory service offered by SoFi. SoFi is a new entrant to robo-advisory services. It’s unique in that you don’t pay any fees! And there is no minimum balance required. The company offers free, unlimited access to human portfolio advisors and even provides career advice.
Your portfolio gets automatically rebalanced whenever there is a 5% drift in the price of any security.
Schwab Intelligent Portfolios
Schwab Intelligent Portfolio is the robo-advisory service offered by the reputed Charles Schwab. The basic service charges no advisory fees but requires a minimum balance of $ 5000, which is relatively high for most beginner investors. It also offers a premium service with a prohibitive, $ 300 upfront fee. The premium service gives you access to human experts.
Schwab offers a highly diversified portfolio with some customizable options and invests in about 51 ETFs selected by Schwab’s experts. It also offers automatic rebalancing of portfolios. Schwab keeps a significant portion of the portfolios in cash, sometimes as high as 30%. But this cash is held in Schwab Bank and bears interest and also FDIC -insured.
Cons include a high minimum balance requirement and a considerable cash component in the portfolio that could limit the portfolio income.
Fidelity Go is the robo-advisory service from the reputed Fidelity group. There is no advisory fee, and no minimum balance required. The company creates portfolios out of about 3400 no-transaction-fee mutual funds operated by the Fidelity group.
The company also offers a Hybrid Robo-advisory service that gives you access to top-notch investment experts. But you need to pay extra for the hybrid service.
Fidelity offers excellent customer support and access to high-quality research.
Vanguard Digital Advisor
Vanguard digital advisor is the robo-advisory service from the well-known Vanguard asset management company. So, what you get is the expertise honed over years of experience in the field. Vanguard insists on a minimum balance of US$ 3000 and charges a fee of 0.15%
It invests in low-cost ETFs (offered by the parent company, Vanguard). You also get automatic, free portfolio rebalancing if the asset values deviate by 5%. And you can get access to human advisors for an additional fee.
Stash offers robo-advisory services with its mobile app. It is a beginner-friendly service with a lot of educational content. The pricing is a monthly subscription of US $ 1, and the company gives access to other services such as an online bank account, etc., for an additional fee. And there is no minimum balance requirement.
It offers socially responsible investment options.