Top robo advisors in 2021: Performance reviews, returns, and comparisons

• Insider Intelligence predicts that robo-advisors will be managing $4.6 trillion by 2022.
• Companies such as Betterment and Wealthfront top the list of best robo-advisors.
• In addition to robo-advisor coverage, Insider Intelligence publishes thousands of research reports, charts, and forecasts on the Fintech industry. You can learn more about becoming a client here.

Which robo-advisor is best?

This is a key question that investors must ponder in 2021. The top robo-advisors are beginning to assert themselves and disrupt the financial space.

Unlike traditional investing platforms, robo-advisors automate the investing process by relying on algorithms and other data to build and manage your portfolio.

Fortunately, we’ve done the heavy lifting for you and compiled a list of robo-advisors for the coming year. Each of these companies has established itself as a player in the growing robo-advisor market, and Insider Intelligence predicts that robo-advisors will be managing $4.6 trillion by 2022.

Betterment

Betterment, an online investing company, has massively expanded its product suite since launching in 2008. In 2019 Betterment launched Betterment Everyday, its cash management suite that includes checking and savings account options.

With no account minimum, and an annual 0.25% fee, Betterment is working toward becoming the go-to personal finance manager.

Learn more about Betterment.

Wealthfront

Wealthfront is an automated investment service that competes with Betterment for the top spot in the robo advising market. As of 2018, Wealthfront became the first robo-advisor to offer free financial planning that is personalized for its clients. However, unlike Betterment, Wealthfront doesn’t offer access to human financial advisors for investing assistance.

Wealthfront offers a fairly low account minimum of $500 – though higher than Betterment’s $0 – and an equally low 0.25% annual advisory fee.

Learn more about Wealthfront.

SigFig

SigFig is a robo investing platform that combines money management technology with financial advisors. SigFig’s product features various tiers – perfect for a first-time investor. Its free portfolio tracker collects customers’ entire investment portfolio in one place and has no minimum investment.

Comparatively, its managed account requires a minimum investment of $2,000 – a large jump from both Betterment and Wealthfront’s requirements – and has a 0.25% annual fee with the first $10,000 managed for free. This service offers portfolio rebalancing, tax loss harvesting, and the ability to chat with human advisors.

Learn more about SigFig.

Charles Schwab

Charles Schwab’s online advisor service, Schwab Intelligent Portfolios, is a top robo-advising competitor largely due to its ability to offer a customized financial roadmap for customers. Investors are prompted to fill complete a questionnaire where they establish their own goals and risk tolerance.

With a $5,000 minimum balance, Schwab Intelligent Portfolios has no management or account fees; however, customers pay expense ratios based on investments – which in most cases are still favorable to the fees of other robo-advisors.

Learn more about Schwab Intelligent Portfolios.

Ellevest

Ellevest is a robo-advising service designed for female investors – but welcomes clients of all gender identities. Having only launched in 2017, Ellevest finds success by looking to close gender money gaps. It uses a proprietary algorithm to calculate financial goal targets to meet gender-specific needs of each client.

Ellevest does not require a minimum balance, and offers three subscription plans that have monthly fees ranging from $1 to $9.

Learn more about Ellevest.

Ally

Ally Invest Managed Portfolios is one of the least expensive robo-advising options. It has a minimum requirement of $100 to begin investing and an average portfolio expense ratio of 0.07%. The service has no advisory fees, annual charges, or rebalancing fees but requires investors to hold a minimum of 30% of the portfolio as interest-earning cash – essentially copying a move from Schwab’s playbook.

Learn more about Ally.

TD Ameritrade

Charles Schwab acquired TD Ameritrade on October 6, 2020, but the brokerage plans to conduct business as usual for now.

TD Ameritrade offers a wide range of services – from its Web Platform for all investing levels, to its thinkorswim platform for serious traders – making it an attractive option for both investing professionals and novices.

TD Ameritrade has a $0 account minimum, but there’s a $500 minimum for Essential Portfolios (the entry-level robo-advisor option). It also offers free stock, ETF, and per-leg options trading commissions in the US. For options trades there is a $0.65 per contract fee.

Learn more about TD Ameritrade.

SoFi

After initially launching in 2011 as a student lending platform, SoFi has expanded well beyond the realm of student loans to personal loans, home loans, and wealth and personal finance management — while still targeting younger investors.

Gearing its services toward younger, fee-conscious clients enables SoFi to charge $0 in fees and require an account minimum of $1.

Learn more about SoFi.

Fidelity

Fidelity offers clients services ranging from financial planning and advice, to strong investing tools. It has 30 million individual customers and $7.6 trillion in client assets. Fidelity is a top robo advising competitor with a $10 account minimum, $0 in commission trades, and $0 in fees.

The company’s robo-advisor, Fidelity Go, only offers investment in Fidelity Flex mutual funds. If you want a wider array of options, you may want to look to another robo-advisor.

Learn more about Fidelity.

Wealthsimple

A relatively new player to the robo advising market is Wealthsimple, which first launched in Canada in 2014, followed by the US in 2017. Wealthsimple offers a socially responsible investment option, backed by a team of financial experts.

With an account minimum of $0 and fees of 0.5% for balances up to $99,999, Wealthsimple is gaining steam among values-based investors.

Learn more about Wealthsimple.

In addition to robo advisor coverage, Insider Intelligence publishes thousands of research reports, charts, and forecasts on the Fintech industry. You can learn more about becoming a client here.

And here are some related Banking reports that might interest in you:

1. The Digital Wealth Management Report, which explains what the current digital wealth management market looks like, what makes the segment worthwhile for incumbents, and how they can find success in the space.
2. The Banking-as-a-Service Report, which looks at five major BaaS providers, ranging from fintechs to 20-year-old legacy providers, that we think represent a proper cross-section of approaches to offering BaaS.