Betterment Historical Performance (2024)

FAQs

What is the yearly return of Betterment? ›

Betterment Historical Performance. Investing in a Betterment 70% stock portfolio since the end of Jan 2004 through the end of Jun 2020 would have produced a cumulative return of +172.9%, which is the same as an average annual return of +6.3%.

Over the last decade, customers who automated their deposits earned 6% higher annual returns than those who did not. 10-year annualized return based on Betterment internal calculations for the Core portfolio. See more in disclosures.

Sacra estimates that Betterment grew revenue to $153M in 2023, up 69% from $91M in 2022. The primary cause of Betterment's revenue acceleration, after growing just 11% year-over-year in 2022, was increased AUM via deposits both to their core robo-advisor product and to their Betterment Reserve high-yield cash account.

Betterment was founded in 2008 in New York City by Jon Stein, a Columbia Business School MBA graduate, and Eli Broverman, a lawyer out of NYU School of Law. Betterment, LLC was established as a Delaware corporation on April 7, 2009.

Both Betterment and Vanguard are excellent choices for an investor who wants to focus on long-term, fund-based investing. Beyond that, the question boils down to how hands-on you want to be.

To add another layer of protection, your Betterment securities are insured by the Securities Investor Protection Corporation (SIPC). This insurance covers up to $500,000 per customer, including a $250,000 limit for cash claims.

One downside is that you'll need at least $100,000 for ongoing CFP guidance. Business Insider's personal finance team compared Betterment Investing to the best IRA accounts and the best robo-advisors. We found it to be an industry leader and named it to both lists.

It's a member of FINRA, is registered with the SEC and customers are protected by the SIPC. Your money is in good hands with Betterment in terms of fraud, but we believe it's also a good investment option for the right situation.

We prefer Betterment over Acorns if you want more portfolio options and are looking to consistently invest money with recurring deposits or through larger lump-sum deposits. It's also superior to Acorns if you want more ESG-friendly portfolios.

Your money is FDIC-insured up to $2 million with our program banks ($4 million for joint accounts).

How many clients does Betterment have? ›

The reported customer count of 900,000+ is as of Jul. 23, 2024, and is inclusive of checking and investing clients. Betterment's reported assets under management (AUM) of $50+ Billion is as of Jul. 23, 2024. This experience and any marketing of the experience are provided by Betterment LLC.

Betterment and Fidelity Go both provide strong robo-advisor offerings that each stand out in their own way. Deciding between the two depends on your goals, investment management preferences, and desire for financial guidance.

The annual percentage yield ("APY") on the deposit balances in Betterment Cash Reserve ("Cash Reserve") is 5.00% and represents the weighted average of the APY on deposit balances at the banks participating in Cash Reserve (the "Program Banks") and is current as of April 2, 2024.

Up to 5.50% annual percentage yield** on Betterment Cash Reserve for new account owners for three months once they fund their account (with a qualifying deposit within 14 days of opening the account); 5.00% after promotion ends and for current customers. No monthly fees or minimum balance.

Benefits of Investing With Betterment

6 If you don't want to invest all your money, you can earn a high 4.75% APY interest rate on your cash using the Betterment savings account. 15 Finally, the technology is well-designed and user-friendly. Betterment makes it easy and safe to start investing.

Annual rate of return (ROR) is the amount earned on an investment over a 12-month period, and is usually expressed as a percentage. That percentage can be positive or negative, depending on the amount gained or lost compared to the principal—the initial investment or beginning amount during the analyzed holding period.