Vanguard Digital Advisor may be preferable for investors seeking lower fees and a lower minimum investment, especially those interested in Vanguard's 401(k) platform. Wealthfront Classic could be more attractive for those interested in cryptocurrency investments and high-yield cash accounts, despite the higher advisory fee and minimum investment.
| Attribute | Vanguard Digital Advisor | Wealthfront Classic |
|---|---|---|
| Minimum Investment | $100 for retail brokerage accounts; $5 for eligible 401(k) plan participant accounts. | $500 |
| Annual Advisory Fee | Approximately 0.15% for an all-index portfolio. Ranges from 0.11% to 0.20% for ESG or active/index investment options. Gross fee of 0.20% for all-index and ESG portfolios, and 0.25% for active/index portfolios. The net advisory fee is waived for the first 90 days for new clients. | 0.25% |
| Investment Options | All-Index: Broad diversification through low-cost Vanguard ETFs across U.S. and international stock and bond markets. Active/Index: Combines active and index funds, integrating actively managed funds with index ETFs. ESG: Funds that apply prescreened ESG criteria. Each portfolio option is made up of Vanguard funds and ETFs. Tax-exempt municipal bond funds are also available. | ETFs, Stocks, Cryptocurrency trusts |
| Account Types Supported | Individual and joint taxable brokerage accounts. IRAs (traditional, Roth, rollover, SEP, and inherited IRAs). 401(k)s for eligible defined-contribution plans on Vanguard's full-service record-keeping platform. | Taxable accounts (individual, joint, and trust), Retirement accounts (IRAs), High-yield cash accounts |
| Tax-Loss Harvesting | Yes, Vanguard Digital Advisor offers automated tax-loss harvesting. | Automated for all taxable accounts, monitors portfolios daily for tax-loss harvesting opportunities |
| Automatic Rebalancing | Yes, Vanguard Digital Advisor offers automatic rebalancing. Portfolios are evaluated daily and rebalanced if any asset class deviates more than 5% from the target asset allocation. Monitoring in place to rebalance if the cash balance is more than $300. | Portfolios are automatically rebalanced |
| Financial Planning Tools & Resources | Retirement planning tools and calculators. Debt-payoff tool. Fund screeners. Risk tolerance tool. Healthcare cost estimator. Budgeting tools. | Free, software-based financial advice engine with automated financial planning tools |
| Customer Support Availability | Monday to Friday, 8 a.m. to 8 p.m. Eastern time by phone. Email support is also available. | Email and phone on weekdays from 7 AM to 5 PM Pacific time |
| Mobile App Availability & Features | Available through Vanguard's website or mobile app. | Wealthfront has a mobile app |
| Socially Responsible Investing (SRI) Options | Yes, Vanguard Digital Advisor offers an ESG portfolio option. Investments include ESG U.S. Stock ETF, ESG International Stock ETF, ESG U.S. Corporate Bond ETF, Short-Term Treasury ETF, Intermediate-Term Treasury ETF, and Total International Bond ETF. | Yes, Wealthfront offers SRI options |
| Goal Setting and Tracking | Tools to set, monitor, and adjust financial goals, including retirement planning. Ability to plan for multiple, non-retirement goals. | Helps users build a financial plan to achieve goals |
| Withdrawal Flexibility | Can easily withdraw funds from the account. | No withdrawal or account closing fees |