Betterment vs. Guideline
Compare 401(k) providers by investments, fees, employee experience, service and support.
| Investments | Betterment | Guideline |
|---|---|---|
|
Funds |
Betterment
Indexed Exchange Traded Funds (ETFs) |
Guideline
Indexed Mutual Funds |
|
Portfolios |
Betterment
509 (across 6 strategies, plus Flexible Portfolio Strategy) |
Guideline
6 (1 strategy, plus customized participant strategies) |
|
Automatic allocation adjustments |
Betterment
|
Guideline
|
|
Flexibility |
Betterment
Participants may choose their own allocation |
Guideline
Participants may choose their own allocation |
|
Socially responsible investments |
Betterment
3 managed portfolio strategies: Broad Impact, Social Impact, Climate Impact |
Guideline
2 large cap equity funds |
|
Additional investment strategies |
Betterment
Socially Responsible (3), Goldman Sachs Smart Beta, BlackRock Income |
Guideline
None |
|
Number of individuals involved in investment advisory services¹ |
Betterment
17 |
Guideline
3 |
| Employee Experience | Betterment | Guideline |
|---|---|---|
|
Platform scope |
Betterment
Holistic advice across all saving and investing goals |
Guideline
401(k) only |
|
External account syncing |
Betterment
|
Guideline
|
|
Personalized retirement planning tools |
Betterment
|
Guideline
|
|
Tax coordination strategies to help maximize returns |
Betterment
|
Guideline
|
|
Mobile app |
Betterment
|
Guideline
|
|
Access to human advisors² |
Betterment
|
Guideline
|
| Service and support | Betterment | Guideline |
|---|---|---|
|
3(38) Investment Fiduciary |
Betterment
Standard |
Guideline
Standard |
|
3(16) Administrative Fiduciary |
Betterment
Standard |
Guideline
Standard |
|
Online signup process |
Betterment
|
Guideline
|
|
Automated compliance support |
Betterment
|
Guideline
|
| Fees | Betterment | Guideline |
|---|---|---|
|
Ongoing Administrative (Employer pays) |
Betterment
$42/mo + $4/participant/month (Standard)⁴ |
Guideline
$49/month + $8/participant/month (Core) $79/month + $8/participant/month (Flex) $129/month + $8/participant/month (Max) |
|
Estimated fund fees (Employees pay) |
Betterment
0.06%³ |
Guideline
0.07%⁴ |
|
Investment management (Employees pay) |
Betterment
0.25% on assets annually ($2.50 for every $1,000) |
Guideline
0.08% on assets annually ($0.80 for every $1,000) |
|
Terminated participant fee |
Betterment
None |
Guideline
$4/month (after 90 days) |