Wealthfront vs Betterment vs Vanguard Reviews

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The profession of financial advisors and investment managers go back to the beginning of investment and commerce. We need them to build and manage our investment portfolios. However, the advancement of technology and computers have started excluding human financial advisors out of the wealth management equation. Automated online personal management services like Betterment, Wealthfront and Vanguard have taken over the reins now. But how do we decide which one to choose? Let’s find out through Wealthfront vs Betterment vs Vanguard Reviews. But before that you should be Understanding ETFs And Mutual Funds And Their Importance!

Wealthfront vs Betterment vs Vanguard Reviews

Wealthfront vs Betterment vs Vanguard Reviews

Wealthfront Reviews

wealthfront

It has a tempting offer to attract new investors: Free management on the first $10,000 invested. Wealthfront gives direct indexing, which uses individual securities to find tax-loss gathering opportunities on balances over $100,000.

Wealthfront’s Pros

Investments: It gives investors a series of survey questions to identify risk tolerance. Afterwards, it divides them into 11 asset classes. The rest of the process is automated with software, making the adjustments accordingly.

Tax efficiency: The software offers regular tax-loss harvesting on all of the taxable accounts. Its Tax-Minimized Brokerage Account Transfer service will prove beneficial for new clients transferring their assets.

Portfolio review tool: An investor can use this tool to link their external accounts and evaluate their portfolio depending on fees, taxes, cash drag and diversification. Moreover, they receive a customized report that can help them make changes in their investment strategy and lower fees.

Wealthfront’s Cons

Cash balance: The online advisor doesn’t buy fractional shares of the extended-traded funds, restricting the company from investing the investor’s total deposit.

Betterment Reviews

betterment

Betterment has managed to emerge as one of the most successful online financial advisors. It has over 270,000 clients and $10 billion in assets under management.

Betterment’s Pros

Minimum account balance: It doesn’t require any minimum deposits. However, it is only applies to its Betterment Digital offering. You need a minimum o f$100,000 balance in exchange for extensive phone access to financial advisors.

Investments: Just like any other online advisor, Betterment depends on modern portfolio theory for its investment philosophy, highlighting the benefits of diversification. It divides investors into 12 asset classes, depending on their risk tolerance and goals.

Saving based on goals: It makes you set goals for your investments. Moreover, it also suggests some goals for you depending on your answers to the survey taken during the sign-up process.

Betterment’s Cons

No direct indexing: Betterment also offers tax-loss harvesting on taxable accounts. But it lacks direct-indexing tools like its competitors.

Vanguard Reviews

Vanguard

Vanguard is revered as the master player of low-cost investing and is recognized for the below-average expense ratios on its index funds and exchange-traded funds.

Vanguard’s Pros

Expense ratios: Vanguard was the first online advisor to introduce low-cost funds. Moreover, it is a known fact that other online advisors use Vanguard’s ETFs to keep investor’s costs low.

Fund performance: According to Vanguard, 93% of its users received more than average fund returns over the 10-year period, till September 2016.

Vanguard’s Cons

Minimum funds: A minimum investment in Vanguard STAR Fund requires $1,000 while other Vanguard funds require a minimum of $3,000. Whereas, a number of online advisors waive the minimum amount on selected funds.

So, what’s the conclusion?

Wealthfront offers great packages and some excellent packages to attract investors. However, Betterment’s lack of minimum deposits is an amazing point swinging the pendulum in its favor. Whereas, Vanguard is the epitome of low-cost investing and customer service. Hence, it’s up to you which one to choose. You can do even further research if you are not sure which is right choice. There is another dilemma that many people face and that is What’s The Better Option: Pay Off Mortgage Or Invest? If you are looking for other means of investments, then here are The 7 Best Short-Term Investment Plans For You!

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