If you're looking for a good roboadvisor, then you've probably heard about Bettermint and Acorns. Both investment platforms offer investors a different kind of investment strategy so we'll be reviewing both choices in this article.
Bettermint vs Acorns Comparison Chart
|Management Fees||0.25% annually||$1/$2/$3 monthly for assets under $1 million|
|Premium Plan Fees||0.40% annually||N/A|
|Accounts Offered||Checking, Savings, Individual, IRA||Checking, individual, IRA|
|# of users||~4.5 million|
|Mobile Apps||Android and iPhone||Android and Iphone|
At first glance, Bettermint and Acorns appeal to 2 specific different target markets.
Bettermint appeals to professional and high net worth investors who want more control over your portfolio allocation and cash reserves. Their premium plan gives you access to your own financial advisor who will help you build a balanced portfolio.
Acorns will appeal more to younger people and millennials who want simplified checking and investing options rolled into one. The fees are a lot less but you don't have as much control over your portfolio.
Fees & Pricing
Acorns is a lot cheaper than Bettermint because they only charge a small monthly fee. The $1/$2/$3 plans will only cost you a maximum of $36 per month. Bettermint charges a management fee similar to an expense ratio charged by fund manager. That's because Bettermint builds your target allocation based on stock & bond ETFs. ETFs charge expense ratios so Bettermint passes on the costs to investors.
FIRE followers will benefit more from Bettermint since the can easily build a low cost portfolio and focus on adding money to their account. Acorns is better if you plan to use the Visa debit card and benefit from roundups.
Portfolio Mix & Allocation
Bettermint does a much better job of being transparent and showing you exactly which ETfs you're invested in. You can adjust your allocation easily from 100% stocks to 0% stocks depending on your risk tolerance. Bettermint uses low cost Vanguard ETFs to build your portfolio.
Acorns is a lot more vague when it comes to showing asset allocation. You can choose from several Vanguard & Blackrock ETF portfolios:
- Moderately Conservative
- Moderate Moderately Aggressive
So which roboadvisor should you choose? It depends on your investment goals and personal preference.
Acorns is a great low cost roboadvisor that charges very low fees until you reach $1 million or more in assets.
Bettermint is more expensive but gives you access to more tools and the option to consult with a personal advisor.
I prefer Acorns due to the lower fees but that's just my personal opinion.
Tarik Pierce is the founder of InvestorTrip.com and regularly contributes articles to this website.
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