Betterment Vs. Fidelity Go: Which Is Better For You?

Betterment and Constancy Go are two of the highest robo-advisors, a well-liked strategy to create an funding plan and have your cash invested based on your threat tolerance and once you want it.

Betterment is likely one of the greatest unbiased robo-advisors and was named Bankrate’s greatest robo-advisor for 2025. In the meantime, Constancy Go is the robo-advisor service on the extremely regarded Constancy Investments, and it, too, scored extremely in Bankrate’s evaluate of the sector.

However once they go face to face, which is healthier for you? Right here’s how Betterment and Constancy Go stack up in opposition to one another.

Portfolio administration

Betterment and Constancy Go provide strong portfolio administration, however Betterment takes it up a notch.

Betterment begins by contemplating what monetary objectives you might have after which permitting you to arrange your portfolio round these varied objectives. If in case you have a short-term aim (like a down fee), you’ll be able to arrange acceptable investments for that particular aim quite than having investments which can be better-suited for long-term objectives (reminiscent of retirement).

Betterment gives 13 asset courses, together with shares and bonds, and constructs a portfolio primarily based on once you want the cash and your threat tolerance. Whereas Betterment can set all of it up for you, it additionally offers you some decisions together with:

• socially accountable funds
• a wise beta fund
• a know-how technique
• cryptocurrency portfolios
• all-cash portfolios 
• all-bond portfolios

And if you wish to tinker a bit extra, you’ll be able to alter the weights of the funds in your portfolio.

Betterment manages your portfolio day by day and rebalances the funds in the event that they transfer greater than 3 p.c to five p.c from the goal allocations. When you go for Betterment’s premium service and might meet the $100,000 threshold, you’ll be able to converse with certified advisors about your portfolio and plans.

Constancy Go will assess your monetary aim and threat tolerance after which set you up with considered one of eight portfolios, starting from conservative (extra bonds) to aggressive (extra shares). However you gained’t be capable of specify a number of objectives, as you’ll be able to at some rivals. The investments embody funds throughout 4 main areas — U.S. shares, overseas shares, bonds and money. Your portfolio is constructed utilizing Constancy Flex funds, which don’t cost a charge, as a part of the Go program.

When you’re simply getting began and can’t add greater than $25,000 to your account, you gained’t have quick entry to a monetary advisor at Constancy. When you hit that threshold, nonetheless, you’ll be able to meet a vast variety of instances for half-hour with advisors who may help you intend. Nonetheless, you’ll be capable of converse with Constancy’s high buyer help workforce for basic questions.

Constancy displays your account day by day and rebalances your portfolio as wanted.

Administration and fund charges

Robo-advisors sometimes cost two main charges — a administration charge (which works to the advisor) and ETF charges (which go to the fund firm). At first, it could appear that Betterment gives decrease administration charges, however add up the overall charges, and it’s a more in-depth race than you would possibly assume.

First, the headline numbers:

• Betterment costs 0.25 p.c of belongings yearly for its core digital service and $4 per 30 days for accounts with lower than $20,000 in belongings (although you’ll be able to dodge this charge should you arrange a recurring deposit of $250).

• Constancy Go costs no charges on the primary $25,000 of belongings after which 0.35 p.c on belongings above that degree.

What does that imply in sensible phrases?

Betterment’s premium plan prices 0.65 p.c of belongings yearly ($65 for each $10,000 invested) however with the power to satisfy with advisors who’ve an authorized monetary planner designation.

Then, you’ll want to have a look at the prices of the funding funds. At Betterment, core portfolios maintain funds charging 0.05 p.c to 0.24 p.c yearly, or $5 to $24 yearly for each $10,000 invested. In the meantime, Constancy makes use of its personal funds and costs no incremental charges for this.

Add up the headline charges for administration and fund bills, and so they come to 0.30 p.c on the low finish for Betterment and 0.35 p.c for Constancy. After all, to get an actual apples-to-apples comparability, you’ll have to think about Constancy’s $0 charge for the primary $25,000 in belongings.

Tax technique

On the subject of tax technique, Betterment gives a extra sturdy service that might prevent cash, with two prongs to its providing.

• Tax-loss harvesting: Betterment makes use of an computerized tax-loss harvesting program that sells dropping investments to get a tax break. The app checks day by day to see if you may benefit and in addition avoids realizing short-term capital good points to take action, which are typically taxed at greater charges. This computerized course of is one thing that human advisors can’t readily do. Betterment estimates that this function might enhance your after-tax returns by 0.77 p.c yearly, an enormous determine over time.

• Tax-coordinated portfolio: Betterment additionally makes use of what it calls a tax-coordinated portfolio to reduce taxable good points. It adjusts which investments go by which portfolios, so extremely taxed investments might go into tax-advantaged accounts reminiscent of IRAs, for instance. Betterment says this function might enhance your returns by 0.48 p.c yearly, or offer you about 15 p.c more cash over 30 years.

In distinction, Constancy Go’s tax technique is fundamental. The robo-advisor gives tax-free municipal bond funds instead of common bond funds in its purchasers’ taxable accounts. After all, you’ll have to have a bond allocation for this function to be beneficial, so when you have an aggressive portfolio — that means a excessive allocation to shares and little or none to bonds — it gained’t do a lot for you.

Money administration account

It’s a robust competitors between Betterment and Constancy Go on money administration accounts. Each provide sturdy accounts with loads of options, although Betterment’s is perhaps a bit higher due to the extent of curiosity provided on money balances.

Betterment’s money administration account is basically two accounts, one for saving and one for spending. The Money Reserve high-yield financial savings account pays a aggressive price, and though that price is variable, the robo-advisor typically gives among the many greater charges accessible. Clients haven’t any minimal account measurement, and particular person accounts are FDIC protected as much as $2 million. When you just like the account, you don’t even have to make use of Betterment’s investing companies to entry it.

In the meantime, Betterment’s checking account costs no charges, together with fundamental account and overdraft charges, and also you’ll be reimbursed for ATM charges and overseas charges. You’ll additionally get a debit card providing cash-back rewards and FDIC protection as much as $250,000 for particular person accounts.

Constancy’s money administration account, which you’ll have to open individually out of your Go account, performs strongly too. With its customer-friendly cred, Constancy gives a no-fee account and FDIC protection as much as $5 million for people. Constancy additionally gives all the usual fashionable options of a money account — invoice pay, a debit card, cellular funds, examine writing — and also you’ll get your ATM charge reimbursed for transactions within the U.S.

If there’s a draw back, it’s that Constancy’s rate of interest on money balances is simply not as excessive, and it’s probably not shut sufficient to Betterment’s to miss the distinction both, at the very least as of this writing.

Entry to advisors and buyer help

Betterment gives a premium service that features entry to certified monetary advisors should you meet the $100,000 threshold. At Constancy, when you attain the $25,000 minimal, you’ll be able to meet with an advisor a vast variety of instances for half-hour per go to.

Each robo-advisors provide help to clients, however Constancy’s is extra usually accessible provided that chatting reside is an choice.

Betterment and Constancy Go each present properly right here with fairly a number of instruments that may assist traders.

Betterment gives the next:

• A tax-impact software that reveals how portfolio adjustments will have an effect on your taxes.
• A charitable-giving software that allows you to donate securities by way of the app.
• A retirement-planning software that takes an in depth have a look at your funds and gives strategies for find out how to optimize them.
• A goal-planning software that gives assist optimizing your varied monetary objectives.
• Academic content material on investing and private finance.

Constancy Go gives fairly a number of helpful instruments as properly:

• A aim tracker that reveals your tempo on the best way to your aims.
• A debt-payoff software that tracks how a lot remaining debt you might have.
• Entry to Constancy’s broad suite of instructional content material, planning guides, screeners and extra — in brief, entry to all of the investing instruments on provide at Constancy.

Each rivals provide a lot for traders who wish to benefit from their robo-advisor and develop their investing data.

Betterment vs. Constancy Go: Which is healthier for you?

Betterment might enchantment to mid- to long-term traders who need:

• Extra funding choices and asset courses.
• Objective-based planning.
• Extra customization.
• Extra superior tax methods.

Constancy Go could also be an excellent match for brand spanking new and cost-conscious traders, reminiscent of:

• Present Constancy clients who wish to persist with a recognized firm.
• Customers with smaller account balances.
• Traders searching for simplicity.
• Customers who wish to spend much less in charges.

Backside line

Betterment makes a robust decide on your subsequent robo-advisor, even when it could value extra for beginning traders. The larger vary of options, together with tax-loss harvesting, make it value the additional premium over Constancy Go, and that value differential declines as your belongings develop.

That stated, present purchasers of Constancy might discover it simply too straightforward to open one other Constancy account and preserve all their cash with a customer-friendly firm that they already know and belief. Since each are excessive scorers in Bankrate’s annual critiques, it’s onerous to go fallacious with both robo-advisor.

Editorial Disclaimer: All traders are suggested to conduct their very own unbiased analysis into funding methods earlier than investing resolution. As well as, traders are suggested that previous funding product efficiency isn’t any assure of future worth appreciation.