Wealthfront is a better option for investors with lower capital and those who prefer lower fees and a DIY approach with portfolio customization. Betterment Premium is more suitable for high-net-worth individuals who value access to human financial advisors and more comprehensive financial planning tools despite the higher fees and minimum investment.
| Attribute | Wealthfront Automated Investing | Betterment Premium |
|---|---|---|
| Minimum Investment Requirement | Automated investment accounts: $500, Cash accounts and the stock investing account: $1, Automated Bond Ladder: $500, S&P 500 Direct Portfolio: $20,000 | $100,000 |
| Annual Advisory Fee | Automated investing: 0.25%, S&P 500 Direct Portfolio: 0.09%, Automated Bond Ladder: 0.15%, Stock investing account: No management fee or commissions | 0.65% of the account balance |
| Investment Options | ETFs from 12 asset classes (portfolios generally consist of 6 to 8), Two cryptocurrency trusts (Bitcoin, Ethereum), Individual stocks, ETFs, and REITs in the stock investing account, Socially responsible ETFs, Sector-based ETFs (e.g., technology, healthcare), Automated Bond Portfolio (mix of Treasury and corporate bond ETFs) | ETFs (Exchange-Traded Funds), Betterment Core Portfolio (uses ETFs from approximately 12 asset classes), Flexible Portfolio (allows customization of asset class weights, including exposure to REITs and commodities), Socially Responsible Investing (SRI) options, Smart Beta Portfolio, Technology Portfolio (focuses on industries like semiconductors, virtual reality, and AI), BlackRock Target Income Portfolio, Crypto investing options. |
| Tax-Loss Harvesting | Offered on all taxable accounts, Daily tax-loss harvesting, Stock-level tax-loss harvesting for accounts over $100,000 | Offered to help minimize tax liabilities. Reviews investments daily to reduce tax exposure. Sells securities that have decreased in value and replaces them with similar investments to reduce taxes. Tax-Coordinated Portfolio feature lowers tax obligations by dividing investments between taxable and tax-advantaged retirement accounts. |
| Account Types Supported | Individual and joint non-retirement accounts, Roth, traditional, rollover, and SEP IRAs, 529 college savings plans, High-yield cash accounts, Trust accounts | Individual Taxable, Joint Taxable, Traditional IRA, Roth IRA, SEP IRA (for self-employed and small businesses), Rollover IRA, Trust, 529 plan (through Betterment at Work), Cash Reserve, Checking |
| Financial Planning Tools & Resources | 'Path' tool for financial planning, Retirement planning tools, College savings planning tools | Goal-setting features to estimate needs for safety nets, retirement, and general investing. Personalized financial support. RetireGuide Calculator. Tools to sync external accounts for a complete financial picture. |
| Customer Support Availability | No human financial advisors are available, Email responses within 1 business day, Phone support Monday through Friday during business hours | Unlimited phone access to a team of Certified Financial Planners (CFPs) is included with the Premium plan. Advisors are available via phone and email, Monday to Friday, 10:00 a.m. to 7:30 p.m. Eastern Time. Live, human customer service is available five days a week. |
| Mobile App Functionality | Available (rated 4.8 on Apple App Store and 4.9 on Google Play Store) | Available on Android and iOS. Allows users to check their portfolio on the go. Users can add new accounts through the app. |
| Socially Responsible Investing (SRI) Options | Socially Responsible Portfolio with a range of SRI investment options, Ability to customize non-SRI portfolios with SRI options | Available for investors |
| Automated Rebalancing | Regular rebalancing in response to market fluctuations, Threshold-based rebalancing (when an asset class moves away from its target allocation), Rebalancing triggered by dividends, deposits, withdrawals, or market fluctuations | Included in the advisory fee at no additional cost. Rebalances the portfolio back to its target allocation in certain circumstances. Uses cash flow (dividends or deposits) to partially rebalance portfolios. Generally rebalances when the portfolio drifts more than 3% from the target allocation. |
| Goal Setting Features | Goal-based planning | Suggests goals based on user answers, estimating a safety net, retirement savings, and general investing targets. Allows users to adjust targets and asset allocation. Enables personalized goals that dictate account types and investment strategies. Users can set up auto-deposits into each goal. |
| Access to Human Advisors | Not available | Unlimited access to a team of CFP professionals for no additional fee with the Premium plan. |