The Largest Robo-Advisors: AUM, Users, and Returns

Investors have poured over $1 trillion into robo-advisors, which offer access to professionally managed portfolios at a relatively low cost. Vanguard Digital Advisor®, which houses its two robo-advisor services, has $333 billion in assets under management by its robo-advisor services, making it the largest robo-advisor by far.

Ready to find a robo-advisor that's right for you? See our top robo-advisors for 2024.

Vanguard is followed by a pair of newer financial services companies, Betterment, with $46 billion in AUM with its robo-advisor services, and Wealthfront, with $36 billion in AUM with its robo-advisor services.

What draws investors to robo-advisors? They are a "low-cost way to have your portfolio professionally managed according to your particular timeframe, risk tolerance, and tax situation," according to Robert Brokamp, Certified Financial Planner™ and Senior Advisor at The Motley Fool.

It's no surprise that some of the largest robo-advisors by assets under management also make Motley Fool Money's list of the best robo-advisors.

Methodology

AUM and client data is from November 2024 Form ADVs. AUM and client data based on other financial products offered by firms included in this article are not included. Investment advisor services that manage both robo-advisor and human-led services are excluded as assets under management (AUM) and client numbers are reported together and cannot be separated by service type. Returns are from Condor Capital's Q3 2024 Robo-Advisor Report.

The largest robo-advisors by AUM, users, and performance

1. Vanguard Digital Advisor®

• AUM managed by robo-advisor services: $333 billion
• Robo-advisor clients: 804,000
• 1-year trailing return (Digital Advisor): 21.81%
• 3-year annualized trailing return (Digital Advisor): 4.01%

Vanguard's robo-advisors, Vanguard Digital Advisor® and Vanguard Personal Advisor, manage some $333 billion for approximately 804,000 clients. Digital Advisor caters to the everyday investor with a $100 minimum deposit, although that's higher than other competitive robo-advisors.

Personal Advisor is aimed at higher net worth individuals. The minimum deposit for that service is $250,000. Digital Advisor is a pure robo-advisor, while Personal Advisor includes the option to meet with a human advisor.

Read our Vanguard Digital Advisor® review

2. Betterment

• AUM managed by robo-advisor services: $46 billion
• Robo-advisor clients: 1.1 million
• 1-year trailing return: 22.52%
• 3-year annualized trailing return: 4.30%

Betterment is one of the original robo-advisors. It launched in 2008 and its robo-advisor services now manage $46 billion in assets. It boasts 1.1 million clients thanks to low fees, relatively strong returns, and a strong brand.

Betterment's fees are among the most competitive in the robo-advisor space. It offers 0.25% annual fee based on invested assets, or $4 per month for its baseline automated investing service. Betterment Premium, which requires a $100,000 minimum deposit, has 0.65% annual fee, and provides unlimited phone access to Certified Financial Planners™.

Read our Betterment review

3. Wealthfront

• AUM managed by robo-advisor services: $36 billion
• Robo-advisor clients: 536,000
• 1-year trailing return: 21.81%
• 3-year annualized trailing return: 5.96%

Wealthfront launched the same year as Betterment but differs in some ways from its fellow robo-advisor pioneer.

The minimum deposit for a Wealthfront robo-advisor account is $500, although its 0.25% management fee is on par with Betterment's. Wealthfront allows more portfolio customization, including through the purchase of individual stocks and ETFs. Wealthfront's 1-year trailing return from November 2024 is slightly lower than Betterment's, but its 3-year annualized trailing return is 1.66% better (as measured by Condor Capital).

Read our Wealthfront review

4. U.S. Bancorp Automated Investor

• AUM managed by robo-advisor services: $16 billion
• Robo-advisor clients: 60 thousand
• 1-year trailing return: 22.11%
• 3-year annualized trailing return: 4.11%

U.S. Bancorp's robo-advisor, Automated Investor, is the fourth-largest robo-advisor by AUM, with $16 billion in assets and 60 thousand clients.

Automated Investor's $1,000 minimum deposit is higher than other robo-advisors on this list, while its 0.24% annual advisory fee is competitive. Automated Investor offers the industry-standard feature of portfolio construction based on client goals, but is one of the few robo-advisors to use a glide path to rebalance toward less risky assets as the goal approaches.

5. Acorns

• AUM managed by robo-advisor services: $8.2 billion
• Robo-advisor clients: 5.8 million
• 1-year trailing return: 23.65%
• 3-year annualized trailing return: 5.38%

Acorns' 5.8 million robo-advisor clients makes it the most popular service on our list. It manages $8.2 billion in assets on behalf of those clients.

Acorns' Round-Ups feature, which automatically rounds up purchases to the nearest dollar and invests the difference, was an initial big draw for investors that didn't want to worry about having to continuously add funds to their portfolios. The company has grown since then and offers a full slate of standard robo-advisor services and accounts. Fees range from $3 to $12 a month.

Read our Acorns review

6. Stash

• AUM managed by robo-advisor services: $3.3 billion
• Robo-advisor clients: 2.7 million
• 1-year trailing return: 5.51%
• 3-year annualized trailing return: 21.95%

Stash, the sixth-largest robo-advisor by AUM, is a good option for beginner investors, but lacks some features that other robo-advisors offer. It has no minimum deposit requirement and its fees for its robo-advisor services are low, running from $3 to $9 a month.

Stash doesn't offer robo-advisor managed IRAs, which many of its competitors do. It also doesn't offer tax loss harvesting or a premium option that includes access to a human advisor.

Read our Stash review

7. SigFig

• AUM managed by robo-advisor services: $2.8 billion
• Robo-advisor clients: 86,000
• 1-year trailing return: 22.95%
• 3-year annualized trailing return: 3.98%

SigFig manages $2.8 billion in assets via its robo-advisor, making it the seventh-largest in the industry. Its $2,000 minimum balance requirement is relatively high but its zero management fee for accounts valued at below $10,000 is a big draw.

SigFig also integrates with existing Charles Schwab and Fidelity Investments accounts, which allows its robo-advisor to manage your money without moving it. SigFig offers consultations with financial planners, but not all are Certified Financial Planners™.

8. Ellevest

• AUM managed by robo-advisor services: $2.1 billion
• Robo-advisor clients: 90 thousand
• 1-year trailing return: 20.71%
• 3-year annualized trailing return: 4.28%

Ellevest is home to $2.1 billion worth of assets for 90,000 clients enrolled in its robo-advisor service. The service has no minimum deposit and a $12 monthly fee, making it an accessible entry point for beginner investors.

Wall Street icon Sallie Krawcheck is co-founder and CEO of Ellevest. Under her leadership, Ellevest's portfolio management technology considers wealth gaps that correlate with gender, which is unique among robo-advisors.

Read our Ellevest review

9. Ally Invest

• AUM managed by robo-advisor services: $1.1 billion
• Robo-advisor clients: 71,000
• 1-year trailing return: 22.60%
• 3-year annualized trailing return: 4.17%

Ally Invest's robo-advisor manages $1.1 billion in assets on behalf of 71,000 clients.

Particularly attractive to new investors is its low minimum deposit of $100 and zero management fee cash-enhanced account option, which puts 70% of deposited funds into a portfolio of ETFs while the remaining 30% stays in an account similar to a high-yield savings account.

Ally Invest also offers a market-focused portfolio for more aggressive investors. That portfolio invests 98% of users' funds into a robo-managed portfolio of ETFs. That option comes with a 0.30% advisory fee.

Read our Ally Invest Robo Portfolios review

10. SoFi Wealth

• AUM managed by robo-advisor services: $944 million
• Robo-advisor clients: 166,000
• 1-year trailing return: 22.95%
• 3-year annualized trailing return: 5.00%

SoFi overhauled its robo-advisor services in November 2024, introducing a 0.25% fee and three types of portfolios: classic, classic with alternatives, and sustainable. SoFi maintained its low minimum deposit of $50.

Access to Certified Financial Planners™ is still offered for all types of robo-advisor account holders, which is a feature that sets SoFi apart from its competitors. Its 1-year trailing and 3-year annualized trailing returns are above average among firms analyzed.

What investors need to know about robo-advisors

Understanding how robo-advisors work is an important part of deciding if one is right for you.

"While much of the actual management is done automatically and technologically (that's the 'robo' part), the overall strategies are devised by teams of experienced investment experts," Robert Brokamp, Certified Financial Planner™ and Senior Advisor at The Motley Fool explains.

That results in lower, more competitive fees relative to what are charged by a financial advisor. Brokamp says, "because the nuts and bolts of the account management, including regular rebalancing, are not done by actual humans, the fees charged by robo-advisors are usually much less than the fees charged by the typical financial advisor."

There are a few drawbacks from robo-advisors, including limited customization and choice when it comes to portfolio construction and lack of access to a Certified Financial Planner™, although some services do offer the latter, according to Brokamp.

Are robo-advisors worth it? That depends on what type of investing experience you're looking for.

"The bottom line," says Brokamp, "a robo-advisor could be appropriate for someone looking for an online, hands-off solution to professional wealth management, even for a small portion of their overall portfolio since robo-advisors tend to have low account minimums."