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Robo-advisors have taken the investing world by storm since debuting more than a decade ago. Though they primarily started as automated portfolio managers, they’ve evolved to provide a whole suite of services and perks, like access to human financial advisors, tax-loss harvesting and cash management.
Because of the sheer number of platforms out there now, it can be intimidating to figure out which is the best robo-advisor for you. That’s why we compiled a list of the top 10 robo-advisors by the amount of client money they manage, or assets under management (AUM). While biggest isn’t always best, these have a proven track record in the industry and have steadily grown their holdings over time.
All data for our ranking comes from each firm’s form ADV most recently filed with the Securities and Exchange Commission (SEC).
1. Vanguard Robo-Advisors
- AUM: $206.6 billion
- Individual clients: 1.1 million
Given its widespread name recognition and enormous firm-wide AUM of $8 trillion globally, it’s no surprise that Vanguard is also a heavyweight in the world of robo-advisors.
Vanguard offers two robo-advisors, a pure robo platform called Vanguard Digital Advisor and the hybrid Personal Advisor Services that offers automated portfolios and access to human advisors. Both come with steeper minimums than more startup-y leading robos, like Betterment or Wealthfront: Digital Advisor requires new clients to have at least $3,000 to enroll whereas Personal Advisor Services requires $50,000.
Digital Advisor charges a fee of 0.15% of a customer’s AUM. Personal Advisor Services charges a 0.30% AUM, which is lower than many hybrid competitors.
2. Schwab Intelligent Portfolios
- AUM: $65.8 billion
- Individual clients: 262,000
Another behemoth financial powerhouse, Charles Schwab also offers two automated investment options. Schwab Intelligent Portfolio provides fee-free investment management, and the hybrid Schwab Intelligent Portfolio Premium adds in access to certified financial planners (CFPs) for a monthly subscription fee.
Schwab Intelligent Portfolios require clients to have at least $5,000 to get started while their Premium counterpart raises the bar to $25,000. Intelligent Portfolios customers do not pay any management fee to Schwab, though the company requires clients to hold roughly 10% of their assets in cash at any time.
Premium charges a $30 per month subscription, regardless of the amount of assets you hold in your account, as well as a one-time $300 planning fee. Not considering the planning fee, this means even those with just the minimum in their Premium account will be paying a fee equivalent to 1.44%. While this is steep for a hybrid robo (or even a human financial advisor), the subscription fee remains the same as your account balance rises, meaning the effective percentage decreases as your savings grow.
It’s also important to note, though, that even Premium holds some of your assets in cash, which may hinder your returns over time.
3. Betterment
- AUM: $26.8 billion
- Individual clients: 615,000
One of the first robo-advisors, Betterment provides a pure robo (Betterment Digital) as well as a hybrid (Betterment Premium). Digital clients can access low-fee financial planning packages a la carte while Premium customers can virtually consult with CFPs anytime as part of their management tier.
Betterment Digital has no investment minimum and charges a cheap 0.25% AUM management fee. Premium clients need $100,000 and pay a 0.40% AUM fee.
4. Wealthfront
- AUM: $21.4 billion
- Individual clients: 307,000
Another of the original stand-alone robo-advisors, Wealthfront exclusively offersan all-digital platform. That said, the platform’s online Path financial planning tool, in which users link their financial accounts and goals to see the likelihood of reaching them, is so comprehensive that it could compete with a human financial planner. In addition, Wealthfront is the only startup robo to offer a 529 account to help you save for children’s future educational expenses, and higher account balances unlock features like stock-level tax-loss harvesting.
Wealthfront charges a fee of 0.25% AUM and requires $500 to get started.
5. Personal Capital Advisors
- AUM: $16.1 billion
- Individual clients: 26,000
Known for its robust suite of free financial management tools, Personal Capital also offers paid hybrid robo-advisory services through Personal Capital Advisors. Recently acquired by Empower Retirement, the company employs a unique equal sector weighting strategy to its asset allocations. Clients can contact CFPs for financial planning services as well as engage in single-stock investing when they reach larger account balances.
Personal Capital Advisors requires a $100,000 minimum and charges 0.89% AUM. As assets grow, fees decline and more services are added. At higher levels of assets, clients can access estate and tax professionals as well.
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6. Blooom
- AUM: $5.0 billion
- Individual clients: 24,000
Unlike the other robos in this list, Blooom solely specializes in retirement account management. After you link your retirement accounts, Blooom analyzes your existing asset allocation, funds and fees to offer better asset allocation with potentially improved, lower-fee risk-adjusted returns based on what’s available in your plan.
You can sample Blooom’s platform and planning tools for free, but to receive portfolio suggestions, you’ll have to enroll and pay a fee. Fees range from $45 to $250 per year; more expensive plans include more services. Access to financial advisors is also available.
7. Acorns
- AUM: $4.7 billion
- Individual clients: 4.4 million
Acorns began as a spare change app and expects to go public this year at a reported value of $2.2 billion. The basic plan enables users to invest spare change and schedule recurring deposits into a portfolio of exchange-traded funds (ETFs); more comprehensive plans include investment accounts for retirement and minors.
Acorns uses a subscription model, charging $1 per month for just a taxable investment account, $3 per month for a taxable investment account, retirement account and checking account, and $5 per month for all of the above plus taxable investment accounts for the important children in your life. There is no minimum balance to open an account, and you can start investing with just $5.
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8. M1 Finance
- AUM: $3.9 billion
- Individual clients: 9,000
Launched in 2015, M1 Finance¹ has grown rapidly to become a significant (and unique) player in the financial arena. While M1 is not a robo-advisor, it offers more than 80 pre-made investment portfolios that make it function similarly to a robo-advisor. It also lets clients craft custom portfolios from a stable of more than 6,000 stocks and ETFs.
With newer additions of banking and borrowing, the do-it-yourself investment app provides a lot of value for low or no fee* and a low minimum. The basic app is free. For $95 a year, though, M1 Plus customers get a second trading window, low margin rates and higher cash yields. You’ll need at least a $100 deposit to start your taxable investment account.
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9. FutureAdvisor by BlackRock
- AUM: $1.8 billion
- Individual clients: 24,000
Originally founded in 2010, FutureAdvisor was acquired by BlackRock in 2015. FutureAdvisor has two main offerings: a free investment portfolio review and FutureAdvisor Premium, a robo-advisor that manages your investments in existing Fidelity Investments or TD Ameritrade accounts.
Similarly to other robo-advisors, Premium investors are funneled into a diversified portfolio of low-fee ETFs that align with your goals and risk level; all Premium clients receive access to financial advisors. Unique to this platform, though, you’re able to hold a small amount of securities you select yourself.
FutureAdvisor Premium’s minimum to open an account is $5,000, and its annual management fee is 0.50%.
10. SigFig
- AUM: $1.42 billion
- Individual clients: 27,000
Founded in 2012, SigFig manages investments that you hold in either TD Ameritrade, Charles Schwab or Fidelity Investments accounts. The company uses a combination of investment research and technology to build investment portfolios aligned with users’ goals, and financial advisors are available for all clients. It also offers a free portfolio tracker to anyone who links their accounts to SigFig.
SigFig’s minimum to open an account is $2,000. You will not pay a management fee on the first $10,000 you have managed by SigFig. Once you cross over that $10,000 threshold, though, you will pay a 0.25% AUM fee.
¹ The opinions expressed are solely those of the authors and do not reflect the views of M1. They are for informational purposes only and are not are commendation of an investment strategy or to buy or sell any security in any account. They are also not research reports and are not intended to serve as the basis for any investment decision. Prior to making any investment decision, you are encouraged to consult your personal investment, legal, and tax advisors. *Commission-free trading of stocks and ETFs refers to$0 commissions charged by M1 Finance LLC for self-directed brokerage accounts. Other fees may apply such as regulatory, M1 Plus membership, account closures and ADR fees. For complete list of fees, visit M1 Fee Schedule. All investing involves risk, including the risk of losing the money you invest. Brokerage products and services are offered by M1 Finance LLC, Member FINRA / SIPC, and a wholly owned subsidiary of M1 Holdings, Inc.
All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future performance. Using margin loans can add to these risks and you should review the M1 margin account risk disclosure before borrowing. M1 Margin Loans are available on margin accounts with at least $2,000 invested per account. Not available for Retirement or Custodial accounts. Margin rates may vary.
M1 is not a robo-advisor and only offers self-directed brokerage services.
