Wealth managers like Betterment, Wealthfront and Personal Capital help you invest your money without as much human interaction as you’d have with a traditional financial advisor. 

I personally like this concept of investment management because these robo-advisors and wealth managers are often able to charge lower fees and provide similar services thanks to the technology and systems they’ve developed.

Unfortunately, there are several robo-advisors and wealth managers to choose from. I have found that choosing the right one can feel extremely overwhelming. I’ve compiled the following information to help you figure out which is best for your circumstances.

Here’s a quick summary of the main comparison points of these three wealth management options:

Features Betterment Wealthfront Personal Capital
Minimum initial investment $0 for regular account – $100,000 for premium account $500 $100,000 for wealth management services
Account types available Traditional IRAs, Roth IRAs, SEP IRAs, inherited IRAs, taxable accounts and trust accounts Traditional IRAs, Roth IRAs, SEP IRAs, 401(k) rollovers, cash accounts, taxable brokerage accounts and 529 college savings plan accounts Traditional IRA, Roth IRA, SEP IRA, rollover IRA, taxable accounts, trusts, 529 college savings plans
Advisory fees 0.25% for Digital – 0.40% for Betterment Premium – 0.10% discount for balances over $2,000,000 0.25% 0.89% on balances up to $1,000,000 declining to 0.49% on assets over $10,000,000
Tax-loss harvesting Yes Yes Yes
Rebalancing Yes Yes Yes
Dividend reinvesting Yes Yes Yes
Mobile app iOS and Android iOS and Android iOS and Android
Socially responsible investing Yes Available through stock-level tax-loss harvesting if you have $100,000 or more or smart beta if you have $500,000 or more Yes
Smart beta Yes Available at $500,000 Yes – smart weighting

Betterment was founded in 2008 and aims to empower people to do what’s best for their money so they can live better. They do this by using technology to help manage your investments at a lower cost than traditional financial advisors. 

Betterment invests your money using index-tracking exchange-traded funds (ETFs) based on your risk tolerance. They use software to help determine your ideal portfolio rather than humans, which allows them to keep their costs low and pass those savings along to you.

They offer a Digital version of their service with a 0.25% advisory fee, which includes personalized financial advice, automatic rebalancing, tax-saving strategies, and a low-cost diversified investment portfolio. 

They also offer a Premium version with a 0.40% advisory fee that includes the same features plus advice on investments outside of Betterment and access to CFP professionals for guidance on life events.

Balances over $2,000,000 get a 0.10% discount on advisory fees for either account type.

To learn more about Betterment, you can read Money Under 30’s detailed review or check out Betterment’s website.

Wealthfront is a traditional robo-advisor that uses technology to help cut costs while still giving people access to investment management tools. They use concepts like tax-loss harvesting, portfolio rebalancing, asset allocation, and risk mitigation to help investors strive for better returns. Wealthfront uses passive investment strategies. 

They work to keep fees to a minimum by not offering human advisory service like Personal Capital does or like Betterment does with their Premium service. Wealthfront currently charges a 0.25% advisory fee to invest with them and you need a $500 initial minimum investment to get started.

Find out more about Wealthfront by reading Money Under 30’s full review or visiting their website.

Personal Capital

Personal Capital was founded in 2009 and is different than Wealthfront and Betterment in the wealth management space. Rather than being a robo-advisor, Personal Capital focuses on combining technology with live registered financial advisors to help you manage your investments. 

The technology deals with the technical aspects like rebalancing, tax optimization, smart weighting strategy, and dynamic portfolio allocation. The financial advisors focus on helping you plan and advising you along your investment journey.

Due to the financial advisor interaction, Personal Capital requires you have at least $100,000 to invest to get started with them. They charge a 0.89% advisory fee for balances up to $1,000,000, with a declining fee structure that bottoms out at 0.49% above $10,000,000. It’s important to note that these fees are higher than Betterment and Wealthfront.

Personal Capital also offers free tools available to everyone, whether they’re a Personal Capital customer or not.

You can learn more about Personal Capital by reading Money Under 30’s in-depth review or visiting their website.

Comparing investment performance between different wealth management companies isn’t possible on an apples-to-apples basis. Each company has a wide variety of portfolios you can invest in that have varying returns. 

Even if you managed to find similar portfolios, they may invest in dissimilar underlying investments or may have different management features that could skew the results. 

To make matters more complicated, the time frames companies give for historical performance may not match up and historical results do not predict future performance.

Despite these differences, it still helps to compare results as long as you truly understand what you’re comparing. Here are a few examples to give you an idea of the historical performance of these three wealth managers. 


Betterment allows you to see their historical results using an interactive tool. You can change the stock allocation and date range to see return data. The data is based on backtesting and includes the Betterment fee of 0.25% and the expenses of the underlying ETFs. It also assumes daily portfolio rebalancing.

From the five year period from the end of December 2014 to the end of December 2019, Betterment’s 100% stock allocation had an average annual return of 8.1%. 

Betterment vs. Wealthfront vs. Personal Capital - Who Wins? - Betterment Investing ReturnsBetterment vs. Wealthfront vs. Personal Capital - Who Wins? - Betterment Investing Returns


Wealthfront lists their historical returns on their website by risk score. I picked the highest risk score available, 10.0, to keep this comparison as similar as possible. Their data is net of expenses and includes Wealthfront’s daily tax-loss harvesting strategy.

For a taxable portfolio, the average annual return net-of-fees and pre-tax was 7.42% for the five year period ending December 31, 2019.

Betterment vs. Wealthfront vs. Personal Capital - Who Wins? - Wealthfront Investment ReturnsBetterment vs. Wealthfront vs. Personal Capital - Who Wins? - Wealthfront Investment Returns

Personal Capital

Personal Capital shares their historical investment returns, as well. To keep data similar, I’ve used their most aggressive portfolio which includes roughly 86% stocks, 4% bonds and 10% alternatives. The returns listed are net of fees.

Over the last five years ending December 2019, their Aggressive Composite Personal Strategy portfolio returned an 8.0% five year annualized return.

Betterment vs. Wealthfront vs. Personal Capital - Who Wins? - Personal Capital Investment Returns

Betterment vs. Wealthfront vs. Personal Capital - Who Wins? - Personal Capital Investment Returns

Betterment vs. Wealthfront vs. Personal Capital: Investment performance conclusion

The three wealth managers all came within 1% of each other over the five year period for average annualized returns. When you consider how the portfolios could have slightly different investments and the wealth managers have varying strategies and features, this makes sense. 

There’s no guarantee a different five-year period or the future returns will have the same results, so you’ll need to base your decision on who to invest with based on how the wealth managers work, their fees and how you expect their investments to perform in the future.


  • low advisory fee of 0.25% for Digital service.
  • no minimum balance to get started with digital service.
  • low advisory fee of 0.40% for Betterment Premium ($100,000 minimum balance required) which includes CFP access.
  • 0.10% advisory fee discount for all balances over $2,000,000 using either service.
  • tax-loss harvesting.
  • smart beta portfolio available.
  • socially conscious investing portfolio available.
  • unlimited rebalancing.


  • Advisory fee is 0.25%, lower than services that offer advice from a human.
  • Focused on low-fee and passive investments.
  • Offers many features including.
  • Rebalancing.
  • Dividend reinvestment.
  • Tax-loss harvesting.
  • Stock-level tax-loss harvesting (available at $100,000.)
  • Socially responsible investing (available at $100,000.)
  • Smart beta (available at $500,000.)
  • Risk parity (available at $100,000.)

Personal Capital

  • Access to financial advisors for advice and retirement planning help.
  • More individualized advice due to financial advisor access rather than 100% technology-based.
  • Investment options include alternative investments.
  • Features focused on improving returns such as dynamic portfolio allocation, tax optimization and smart weighting.
  • Free tools available to track net worth, spending and more.


  • Requires $100,000 minimum to qualify for Premium service with CFP access.
  • Customer service only available five days per week for Digital customers.


  • Requires a $500 minimum initial investment to start which is higher than Betterment but lower than Personal Capital.
  • Certain features are limited to accounts in excess of $100,000 or $500,000 including risk parity, smart beta, socially responsible investing and stock-level tax-loss harvesting.
  • No advisory fee discounts for holding a larger balance with Wealthfront, unlike Betterment and Personal Capital

Personal Capital

  • $100,000 minimum to start investing with Personal Capital is steep for the average investor getting started.
  • Initial 0.89% advisory fee on first $1,000,000 in assets is higher than robo-advisors like Betterment and Wealthfront.

No minimum balance required to get started with Digital services

Betterment doesn’t impose a minimum balance on their Digital services accounts. This means virtually anyone can get started investing without having to put up $100, $500, or $100,000 to get started.

Smart beta and socially responsible investing options

If you’re looking for specific investment strategies, Betterment offers both smart beta and socially responsible investing options. 

Access to CFPs with a $100,000 minimum at a lower cost

You can get access to a CFP once you have $100,000 invested by selecting their Premium service. This has a higher advisory fee cost of 0.40%, but it’s much lower than Personal Capital’s 0.89% advisory fee on the first $1,000,000 of assets. 

That said, the CFP features are different. Betterment’s CFPs focus on helping you navigate life events while Personal Capital’s advisors offer more services.

An achievable minimum initial investment to get started

While Wealthfront requires a minimum initial investment of $500 to start investing with them, that’s multitudes lower than Personal Capital’s $100,000 requirement.

Most people should be able to save up $500 within a few weeks or months if they really like the Wealthfront platform better than Betterment.

Multiple tools to manage investments better as your balance grows

As your account balance grows, you get access to additional features. These include socially responsible investing ($100,000), stock-level tax-loss harvesting ($100,000), risk parity ($100,000) and smart beta ($500,000).

Even without these features, Wealthfront offers plenty of other tools for all accounts no matter the balance such as rebalancing and dividend reinvestment. 

Several account types available for tax optimization

If you want to focus on optimizing your tax situation, Wealthfront offers quite a few types of accounts to choose from.

You could open traditional IRAs, Roth IRAs, SEP IRAs, rollover IRAs, cash, taxable brokerage or even 529 college savings plan accounts.

Why choose Personal Capital

Access to a financial advisor

Unlike the traditional service offerings of robo-advisors, Personal Capital gives those investing with them access to financial advisors to help plan their financial futures.

You can ask questions and get help making plans with a live person rather than technology that may not understand the complexities of your situation. 

More comprehensive financial tools

Personal Capital helps manage your investments, but they also have a suite of tools anyone can use to manage your finances. They have tools for net worth tracking, budgeting, cash flow tracking, bill tracking and more. 

Many features to attempt to optimize returns

Personal Capital’s methodology and technology use features to help optimize your returns. Dynamic portfolio allocation, intelligent rebalancing, tax optimization and smart weighting could help your overall investment strategy.


Betterment, Wealthfront, and Personal Capital are all wealth management companies that can help you invest for your future. They use technology to offer strategies that may boost returns while keeping costs lower than traditional financial advisors.

I personally like the robo-advisors that charge a lower fee because I don’t feel I’d use the CFP access Personal Capital offers very often. I’d rather keep the fee difference invested to help my money grow even more. 

That said, those that have at least $100,000 to invest and need a financial advisor to answer questions and help keep them on track might be better off with Personal Capital.

Read more:

  • Do You Need A Financial Advisor?
  • Personal Capital Review: My Experience Using Personal Capital