Betterment is the original robo-advisor. Jon Stein founded it in 2008 and launched publicly at TechCrunch Disrupt in 2010. It was the first company to build an entirely automated investment service for everyday consumers, and the concept sparked a wave of competitors that followed.
The platform asks users a few questions about their goals and risk tolerance, then builds a portfolio of globally diversified ETFs. Everything runs on autopilot — rebalancing, dividend reinvestment, and tax-loss harvesting happen without the user lifting a finger. The tax coordination feature optimizes which assets sit in taxable vs. tax-advantaged accounts to minimize the overall tax hit.
Betterment offers two tiers. The Digital plan charges 0.25% annually with no minimum balance. Premium adds access to certified financial planners via phone or video for 0.65% annually, requiring a $100,000 minimum. Both tiers include retirement accounts, individual and joint taxable accounts, and trust accounts.
The company added a high-yield cash management account, a checking account with no fees, and a credit card with crypto rewards. Betterment at Work, their 401(k) product for employers, has become a growing revenue stream and now serves hundreds of companies.
Betterment manages over $45 billion in assets and serves more than 800,000 customers. The company reached profitability in 2023 after years of heavy investment in product expansion. Goldman Sachs was an early investor, and total fundraising exceeds $435 million.
