Acorns vs Wealthfront: Which is Better?

When comparing Acorns and Wealthfront, it’s essential to examine various aspects such as investment options, fees, account types, technology, user experience, and overall suitability for your financial goals. Both platforms offer automated investment solutions designed to make investing more accessible and convenient for users. In this comparison, we’ll delve into the key features of each platform to help you make an informed decision.


Acorns is a micro-investing platform that rounds up your everyday purchases to the nearest dollar and invests the spare change into a diversified portfolio of ETFs (Exchange-Traded Funds). Its aim is to help individuals, particularly those with limited funds, start investing with small amounts of money and grow their portfolios over time.

Wealthfront, on the other hand, is a robo-advisor that offers automated investment management services based on modern portfolio theory and passive investing principles. It creates and manages diversified portfolios of low-cost ETFs on behalf of its clients, utilizing algorithms to optimize asset allocation and rebalance portfolios regularly.

Investment Options

Acorns primarily offers a limited selection of ETF-based portfolios designed to match various risk profiles, ranging from conservative to aggressive. These portfolios typically consist of a mix of stocks and bonds diversified across asset classes and sectors. Acorns’ approach is straightforward and hands-off, making it suitable for beginner investors or those looking for a simple, automated investment solution.

Wealthfront offers a broader range of investment options, including not only ETF-based portfolios but also features like tax-loss harvesting, direct indexing, and socially responsible investing. Its portfolios are constructed using a combination of ETFs representing different asset classes, including U.S. stocks, international stocks, emerging markets, real estate, and bonds. Wealthfront’s focus on advanced investment strategies and tax efficiency may appeal to more sophisticated investors or those with specific preferences regarding portfolio customization and optimization.


Acorns charges a monthly fee ranging from $1 to $5, depending on the tier of service chosen. The basic tier includes an investment account and a retirement account, while the higher tiers add features like an Acorns debit card, access to a checking account, and bonus investments for shopping with Acorns partners. In addition to the monthly fee, Acorns charges an annual management fee ranging from 0.25% to 0.50% of assets under management.

Wealthfront charges an annual advisory fee of 0.25% of assets under management, with no additional trading commissions or account fees. However, Wealthfront’s fee structure includes the underlying expense ratios of the ETFs in its portfolios, which typically range from 0.07% to 0.16%. While Wealthfront’s advisory fee is competitive compared to traditional financial advisors, it’s essential to consider the total cost of investing, including both advisory fees and fund expenses, when evaluating its services.

Account Types

Acorns offers individual taxable investment accounts, traditional and Roth IRAs (Individual Retirement Accounts), as well as custodial accounts for minors. Its inclusion of retirement accounts makes it suitable for long-term savings and retirement planning, in addition to taxable investment accounts for general investing goals.

Wealthfront provides individual taxable investment accounts, traditional and Roth IRAs, SEP IRAs (Simplified Employee Pension), and 529 college savings accounts. Its focus on tax-efficient investing strategies, such as tax-loss harvesting and direct indexing, may appeal to investors looking to minimize tax liabilities and optimize after-tax returns in their investment portfolios.

Technology and User Experience

Acorns’ mobile app and website are designed with simplicity and accessibility in mind, making it easy for users to sign up, set up their accounts, and start investing within minutes. Its round-up feature automatically invests spare change from everyday purchases, while additional features like Found Money partnerships and educational content enhance the user experience.

Wealthfront offers a sleek and intuitive online platform and mobile app with advanced features like goal tracking, financial planning tools, and investment portfolio analysis. Its user-friendly interface and comprehensive dashboard provide users with a holistic view of their financial accounts and investment performance. Wealthfront’s emphasis on automation and optimization aims to simplify the investing process and help users achieve their financial goals more effectively.


Both Acorns and Wealthfront prioritize the security of their users’ accounts and personal information. They employ industry-standard security measures, such as encryption, multi-factor authentication, and regular security audits, to protect against unauthorized access and data breaches. Additionally, both platforms offer FDIC insurance for cash balances held in their accounts and SIPC protection for securities held in brokerage accounts.

Customer Support

Acorns provides customer support via email and in-app messaging. While it lacks phone support, its online help center and educational resources aim to address common questions and concerns. Acorns also offers a referral program that rewards users for inviting friends to join the platform.

Wealthfront offers customer support via email and phone during business hours. Additionally, it provides extensive educational resources, including blog posts, whitepapers, and webinars, to help users learn about investing, financial planning, and retirement savings. Wealthfront’s customer support team aims to provide timely and personalized assistance to address users’ inquiries and help them make informed decisions about their investments.

Final Conclusion on Acorns vs Wealthfront: Which is Better?

In conclusion, both Acorns and Wealthfront offer automated investment solutions designed to make investing more accessible and convenient for users. Acorns appeals to individuals looking for a simple, hands-off approach to investing, with its round-up feature and monthly subscription model making it easy to start investing with small amounts of money.

Wealthfront, on the other hand, caters to investors seeking more sophisticated investment strategies and tax-efficient portfolio management. Its focus on advanced features like tax-loss harvesting and direct indexing, combined with its competitive fee structure, may appeal to more experienced investors or those with specific preferences regarding portfolio customization and optimization.

Ultimately, the choice between Acorns and Wealthfront depends on your individual preferences, investment goals, and level of comfort with managing your investments. It’s essential to evaluate the features, fees, investment options, and user experience of each platform to determine which one best aligns with your financial needs and objectives.


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