Our experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.
Bottom line: Wealthfront is best for hands-off investors who prefer automated portfolio management and want access to crypto trusts. Vanguard, however, serves a wider range of investors by offering both DIY and automated/managed accounts.
Wealthfront vs. Vanguard: The Biggest Differences
Wealthfront and Vanguard offer multiple investment choices and account types for retail investors. But while Vanguard is an online brokerage, with both DIY and automated investing, Wealthfront mainly provides automated portfolio management. Wealthfront does allow DIY trading for stocks, though, with its stock investment account.
You’ll pay less to set up an automated investing account at Wealthfront (it has a $500 minimum; Vanguard Digital Advisor and Vanguard Personal Advisor Services require $3,000 and $50,000, respectively), but your overall investment selection will be more limited compared to Vanguard’s.
Vanguard is best for most types of investors, as it offers access to stocks, ETFs, options, mutual funds, and much more. If you’re a hands-off investor strictly in search of robo-advice, Wealthfront is the better choice. The platform also offers an investment type that Vanguard’s equivalent accounts don’t: crypto trusts.
529 College Savings plan
Stock investment account
Individual and joint taxable accounts
Individual retirement accounts (IRAs)
Small business retirement plans
Stocks, ETFs, index funds, and crypto trusts
Stocks, ETFs, options, bonds, mutual funds, and CDs
Goal-based investing; crypto trust investments
Tax-loss harvesting, US direct indexing, risk parity, and smart beta strategies
Socially responsible investing and automated 529 College Savings plans available
High-yield cash account; portfolio lines of credit
Self-directed investment accounts
Tax-efficient managed portfolios
Automated investing; margin trading
Investment research and analysis
Human advisors available?
Human advisors available?
Yes — unlimited access to financial advisors with Vanguard Personal Advisor Services account
Yes — Vanguard Digital Advisor and Vanguard Personal Advisor Services
Is Wealthfront Right for You?
Low fees; can customize your ETF allocation
Tax-loss harvesting, direct indexing, risk parity, and smart beta strategies available
Cash account lets you earn 0.85%; Wealthfront only lets you have an allocation of crypto trusts up to 10% of your portfolio to protect you against risk
Mobile app and investing and retirement tools
You need at least $100,000 to utilize additional investment strategies
No human advisor access
Wealthfront …read more
Source:: Business Insider