Robo-advisors have taken the investing world by relentless huriicans since debuting more than a decade ago. Though they primarily started as automated portfolio managers, they’ve evolved to provide a whole suite of privileges and perks, like access to human financial advisors, tax-loss harvesting and cash management.
Because of the lot of number of platforms out there now, it can be difficult to figure out which is the best robot advisor for you. That’s why we compiled a list of the best 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.some best robo-advisors are given below.
1-Vanguard Robo-Advisors AUM: $206.6 billion (Assets under management) Individual clients: 1.1 million Vanguard offers two Robo-advisors, a pure robot platform called Vanguard Digital Advisor (VAS)and the hybrid Personal Advisor Services PAS) that offers automated portfolios and reach to human advisors. Both come with steeper minimums than more startup-y leading robots, like Betterment or Wealthfront: Digital Advisor requires new clients to have at least $3,000 whereas Personal Advisor Services requires $50,000. Digital Advisr ( DA) charges a fee of 0.15% of a customer’s Assets under management (AUM). Personal Advisor Services (PAS) 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 financial powerhouse, Charles Schwab also offers two automated investment options. Schwab Intelligent Portfolio (SIP) provides fee-free investment management, and the hybrid Schwab Intelligent Portfolio(HSIP) Premium adds in access to certified financial planners (CFPs) for a monthly subscription fee.Schwab Intelligent Portfolios (SIP) require clients to have at least $5,000 to get started while their Premium counterpart raises the bar to $25,000. 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.
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 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 offers an 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 accessing 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 free financial management tools, Personal Capital also offers paid hybrid robo-advisory services through Personal Capital Advisors(PCA). 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 (PCAs) 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.