The 12 Best Robo-Advisors of 2023

The future of personal asset management is rapidly changing, and robo-advisors are at the forefront. Savvy investors want to know which robo-advisors offer the best services for their hard-earned bucks in 2023. We’ve taken a deep dive into all of them to bring you our top 12 picks. Find out who made it to the list and why they're worth your consideration.

Vanguard

Vanguard is a leading global investment management company with over $207 billion in assets under management (AUM). It offers a wide range of mutual funds, ETFs, and other investments to meet the needs of individual investors.

The Vanguard platform has several advantages for investors. Its low-cost index funds are some of the most competitively priced on the market, and its no-transaction fee policy makes it easy to buy and sell without incurring additional costs. Additionally, there is no minimum balance requirement for opening an account or investing in any fund. Vanguard does charge annual fees ranging from 0.15% to 0.35%, depending on the type of account opened and amount invested.

Schwab Intelligent Portfolios

Schwab Intelligent Portfolios is an automated investment platform offered by Charles Schwab & Co., Inc., a leading provider of financial services with over $66 billion in AUM. It provides users with access to low-cost, diversified portfolios tailored to their individual goals and risk tolerance.

The main advantages of Schwab Intelligent Portfolios are its low fees, no minimum balance requirement, and the ability to customize your portfolio according to your needs. The platform also offers tax optimization strategies for investors who want to minimize their taxes on investments. On the downside, it does not offer any human advice or guidance from experienced advisors which may be beneficial for some investors. Additionally, there is a 0.30% annual advisory fee that applies regardless of account size.

Betterment

Betterment is an online investment platform that provides automated portfolio management and financial advice to its customers. It was founded in 2008 and has grown to become one of the largest independent robo-advisors, with over $27 billion in AUM.

The main advantages of Betterment are its low fees (0.25% for accounts up to $2 million) and no minimum balance requirement, making it a great choice for those just starting out with investing or who have limited funds available. Additionally, they offer personalized advice tailored to each customer's individual needs as well as tax optimization strategies such as Tax Loss Harvesting+. On the downside, their selection of investments is somewhat limited compared to other platforms; however this may be beneficial for those looking for a simpler approach.

Wealthfront

Wealthfront is an automated investment platform that provides users with a personalized portfolio tailored to their individual goals and risk tolerance. The company has over $21 billion in AUM and offers services such as tax-loss harvesting, 529 college savings plans, and stock-level tax optimization.

The minimum deposit required to open an account is only $500, making it accessible for most investors regardless of budget size. Wealthfront also charges no commissions or trading fees on any investments made through the platform; however, there are annual advisory fees ranging from 0.25% - 0.40%, depending on the amount invested in your account balance. Overall, Wealthfront provides a great option for those looking for low cost access to automated investing with comprehensive features.

Personal Capital Advisors

Personal Capital Advisors is an online investment platform that provides financial planning and asset management services to individuals, families, and businesses. It has over $16 billion in AUM.

Personal Capital Advisors' platform provides services including portfolio analysis, retirement planning, budgeting tips, and tax optimization strategies. To open an account, a minimum balance of $100k is needed for Wealth Management, or $25k for Investment Advisory Service. The fee structure is percentage-based, dependent on AUM, with lower fees for larger accounts. Importantly, no extra trading costs or commissions are levied.

Bloom

Bloom Asset Management is a global asset management firm with over $5 billion in AUM. Founded in 2018, the company offers a range of investment products and services to institutional investors, family offices, and high net worth individuals.

Bloom's platform provides access to alternative investments such as private equity funds, venture capital funds, real estate funds, hedge funds and other illiquid investments. The minimum investment amount varies depending on the type of fund but typically starts at around $50K USD for most offerings. Fees are also dependent on the type of fund but generally include an annual management fee plus performance fees if applicable.

Acorns

Acorns is an investment platform that allows users to invest spare change from everyday purchases into a diversified portfolio of stocks and bonds. It has become one of the most popular micro-investing apps, with over $4.7 billion in AUM.

The main benefit of Acorns is its low barrier to entry; it requires no minimum balance or fees for accounts with less than $5,000 invested. Additionally, there are no commissions on trades and users can set up recurring investments as small as $5 per week. On the downside, Acorns charges a flat fee of 0.25% annually for all accounts regardless of size which may be too high for some investors.

M1 Finance

M1 Finance is an online investment platform that offers automated investing and portfolio management services for individuals. It allows users to create a diversified portfolio of stocks and ETFs with no commissions or account minimums. It has over $3.9 billion in AUM.

The main advantages of M1 Finance are its low fees, lack of account minimums, and the ability to customize your own portfolios. The platform also provides access to fractional shares, which makes it easier for investors to build a well-diversified portfolio without having to invest large amounts of money at once. On the downside, there are limited options when it comes to customer service support as well as research tools available on the platform.

FutureAdvisor by BlackRock

FutureAdvisor is an online investment platform owned and operated by BlackRock, one of the world's largest asset management companies with over $1.8 trillion in AUM. FutureAdvisor provides users with automated portfolio advice and a range of services to help them manage their investments.

The main advantages of using FutureAdvisor are its low fees, minimums, and access to professional financial advisors who can provide personalized advice on how to best invest your money. The platform also offers tax-loss harvesting for those looking to reduce their taxable income. On the downside, there are no fractional shares available which limits diversification opportunities for investors with smaller amounts of capital. Additionally, some users may find the user interface difficult to navigate due to its complexity.

SigFig

SigFig is an online investment platform with $1.42 billion in AUM that provides users with a comprehensive suite of tools to manage their investments and track performance in real-time. SigFig offers automated portfolio management, personalized advice from advisors, and access to over 10,000 stocks and ETFs.

The main advantages of using SigFig are its low fees (0% for stock trades) and no minimum balance requirement for accounts. Additionally, the platform has a user-friendly interface which makes it easy to navigate even for beginners. On the downside, there are limited options when it comes to mutual funds or bonds; also some features such as tax optimization require additional fees.

FidelityGo

FidelityGo is an automated investment platform that provides users with a personalized portfolio tailored to their individual needs and goals. The company has over $1.2 billion in AUM and offers a wide range of services, including retirement planning, tax-loss harvesting, and automatic rebalancing.

FidelityGo's strengths include low minimums ($0 for taxable, $500 for IRAs), no account fees or trade commissions, professional portfolio management, and risk tolerance-based portfolio customization. However, they offer limited customer service (only email support) and, while providing some tax-optimized strategies, don't offer tax or other financial advice.

SoFi Automated Investing

SoFi Automated Investing is a digital investment platform that offers automated investing services with no minimums and low fees. It was founded in 2011 and has grown to manage over $1.3 billion in assets.

SoFi, with its low fees, absence of account minimums, and fractional share investment options, appeals to investors looking for broad access to stocks and ETFs without hefty management fees. However, compared to more sophisticated robo-advisors like Wealthfront or Betterment, it falls short on tax-loss harvesting, retirement account offerings, and customization capabilities.