Robo-Advisor Benchmarks: Compare Platforms, Fees, and Tax Strategies
When you pick a robo-advisor, an automated investment service that manages your portfolio with algorithms and minimal human input. Also known as automated investment platforms, these tools handle everything from asset allocation to rebalancing—but not all of them do it the same way. Your returns don’t just depend on the market. They depend on which robo-advisor benchmarks you’re measuring against. Betterment, Wealthfront, Schwab Intelligent Portfolios, and others all claim to be low-cost and smart, but their hidden differences can cost you hundreds—or even thousands—over time.
One big gap? tax-loss harvesting, a strategy that sells losing investments to offset capital gains and reduce your tax bill. tax harvesting isn’t just a feature—it’s a money-saver. Betterment lets you harvest losses at any time, while Wealthfront waits until December unless you’re above a certain balance. Schwab only does it for accounts over $5,000. And some platforms don’t do it at all. Then there’s the fee structure, the annual cost you pay to use the service. Most charge 0.25% to 0.40%, but some add extra fees for premium advice, bank transfers, or even cash management. You need to know what you’re paying for, not just how much.
It’s not just about fees and taxes. portfolio construction, how the platform picks and weights your assets. Some stick to basic ETFs like VTI and VXUS. Others throw in niche funds, REITs, or even cryptocurrency exposure. And if you’re a freelancer or have irregular income, does the platform let you adjust contributions easily? Does it offer automatic rebalancing, or do you have to trigger it manually? These aren’t small details—they shape how your money grows. The best robo-advisor for you isn’t the one with the fanciest website. It’s the one whose rules match your goals, your tax situation, and your tolerance for hands-off management.
Below, you’ll find real comparisons—how different platforms handle tax-loss harvesting thresholds, what fees they hide, which ones actually help you keep more of your gains, and which ones don’t deliver what they promise. No fluff. Just what you need to pick the right one.
