Betterment
Assets Under Management
$56.4B
Number of Clients
923,777
Number of Advisors
26
Average Client AUM
$61K
AUM per Advisor
$2.2B
Compensation
Fee-Only (AUM)
About This Firm
Betterment LLC provides investment advice and discretionary asset management services primarily through its online platform. It offers managed portfolios of ETFs and stocks, as well as a cash management offering and self-directed investing options. Services are offered to retail clients, third-party advised clients, and retirement plan clients.
Fee Structure
AUM-Based Fees (Flat)
| Assets Under Management | Annual Fee |
|---|---|
| $0+ | 0.25% |
Retail Clients pay a $5 per month wrap fee for their Digital wrap accounts ($60 annually) if their Total Account Balance is under $24,000. Clients in the Premium Plan pay 0.65% annually, which includes access to financial consultants; this fee is waived on balances above $1 million. Betterment’s asset-based fees for Retail Clients are subject to (i) a 0.10% discount on the portions of their balances above $1 million and up to $2 million and (ii) a 0.15% discount on the portions of their balances above $2 million
Fee Estimator
Betterment charges an asset-based wrap fee that covers investment advisory, trading, and custody services. Retail clients pay either $5/month (for balances under $24,000) or 0.25% annually. Clients in the Premium Plan pay 0.65% annually, which includes access to financial consultants; this fee is waived on balances above $1 million. HSA accounts are subject to an annual fee of 0.50%. A $75 fee applies for full or partial account transfers to another brokerage firm. Betterment waives its wrap fee on client account balances held in SDI and in Cash Reserve.
Areas of Practice
Location
450 West 33rd Street, Floor 11, New York, NY, 10001