Vanguard Digital Advisor is a better choice for investors with lower capital and those who prefer a low-cost, all-digital experience. Betterment Premium is more suitable for high-net-worth individuals who value access to financial advisors and a wider range of investment options, including SRI portfolios and crypto ETFs, despite the higher fees and minimum investment.
| Attribute | Betterment Premium | Vanguard Digital Advisor |
|---|---|---|
| Minimum Investment Requirement | $100,000 combined balance across taxable stock and bond investing accounts, IRAs, and HSA accounts | $100. For eligible 401(k) accounts, the minimum is $5. |
| Annual Advisory Fee | 0.65% | Approximately 0.15% of assets managed for a typical all-index portfolio. For ESG or Active/Index portfolios, it ranges from 0.11% to 0.20%. New clients may have this fee waived for the first 90 days. |
| Investment Portfolio Options | Standard portfolio of globally diversified stock and bond ETFs, Income-focused all-bond portfolio of BlackRock ETFs, "Flexible Portfolio" with asset classes weighted according to user preferences, Goldman Sachs Smart Beta portfolio, Socially Responsible Investing (SRI) portfolios (Broad Impact, Climate Impact, and Social Impact), New crypto ETF portfolio (Bitcoin and Ethereum ETFs) | All-Index: Includes U.S. and international stocks and bonds. Active/Index: Includes ETFs from the All-Index portfolio and actively managed mutual funds. ESG: Invests in companies with strong environmental, social, and governance criteria. |
| Tax-Loss Harvesting | Yes | Yes, Vanguard Digital Advisor offers automatic tax-loss harvesting. You may need to request activation of this feature. |
| Financial Planning Tools | Goal-based investing, retirement planning, tax impact preview tool | Includes tools like a goal optimizer, debt payoff calculator, and emergency fund tool. |
| Access to Financial Advisors | Unlimited phone access to a team of Certified Financial Planners (CFPs) via phone and email | Vanguard Digital Advisor is an all-digital service and does not provide access to human financial advisors. Access to advisors is available through Vanguard Personal Advisor, which has a higher minimum and separate fees. |
| Account Types Supported | Traditional IRA, Roth IRA, SEP IRA, taxable accounts, trusts | Individual and joint taxable brokerage accounts, Traditional, Roth, Rollover, SEP, and inherited IRAs, and 401(k)s for eligible plans. |
| Mobile App Availability and Features | Available on iOS and Android with a user-friendly interface | Available on iOS and Android. You can check balances, track performance, make trades, deposit and withdraw funds, and review transaction history. |
| Customer Support Channels and Availability | Phone, email, and live chat, Monday to Friday, 9 a.m. to 8 p.m. Eastern time | Customer support is available via phone (Monday to Friday, 8 a.m. to 8 p.m. ET) and email. |
| Socially Responsible Investing (SRI) Options | Broad Impact, Climate Impact, and Social Impact portfolios | Yes, through the ESG portfolio option. |
| Goal Setting and Tracking | Yes | The platform helps clients identify retirement and non-retirement goals and creates customized portfolios to achieve them. |
| Automatic Rebalancing | Yes, when cash flows in or out, or when the allocation to a particular asset class drifts 3% or more from its target level. | Yes, portfolios are monitored daily and rebalanced when any asset class deviates more than 5% from the target allocation. |