What it is
Betterment builds and manages diversified ETF portfolios for US investors, with automatic rebalancing, tax-loss harvesting and IRAs, for an annual management fee.
Who it suits
US investors who want a managed portfolio without picking stocks.
Regulation and protection
SEC-registered investment adviser.
How it charges
An annual fee as a percentage of assets, with a higher premium tier that includes access to advisers. ETF expense ratios inside the portfolios are extra.
Getting started
Answer questions about goals and risk, choose a portfolio, link a bank and set up recurring deposits. Rebalancing and tax-loss harvesting run automatically.
At a glance
- Stock commission
- Management fee instead
- ISA / tax wrapper
- IRA (US)
- Fractional shares
- Yes
- Crypto
- Limited
- Headquarters
- New York
- Founded
- 2008
Strengths
- Hands-off investing
- Tax-loss harvesting
- Goal-based planning
Watch for
- Annual fee on assets
- No individual stock picking
Readers ask2 questions answered
What does Betterment charge?
An annual management fee on assets, with a premium tier that includes adviser access.
Can I pick my own stocks at Betterment?
No. Portfolios are built from ETFs and managed for you; that is the point of a robo-adviser.
How it comparesIts standing in 1 comparison
Best goals-based robo-adviser with human advice option
- Stock commission
- Management fee instead 2 of them share this
- ISA / tax wrapper
- IRA (US) 5 of them share this
- Fractional shares
- Yes 6 of them share this
- Crypto
- Limited 1 provider in this comparison
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