Honesty and transparency are our core principles. We’re happy to show you how we line up with our competitors, so you can decide what’s best for you.
|OpenInvest||Betterment||Vanguard Funds||Socially Responsible Mutual Funds||Socially Responsible ETFs|
|Additional and/or Hidden Fees Fees
|Total Annual Fees, Including Everything||0.50%||~0.40-.65%, depending on package||0.05-1.10%||Varies. Average is 1.08%||Varies. Average is 0.49%|
|Tax Loss Harvesting Optimized at the Individual Equities Level
OpenInvest practices Tax-Loss Harvesting at the Securities Level, a more sophisticated approach traditionally only available to the very wealthy. This involves bypassing fund managers and giving you direct ownership of the underlying companies, where there is a much greater opportunity to trade and optimize for tax-loss harvesting between the gains and losses of individual stocks.
Wealthfront estimates that this approach generates up to 2.03% additional gains per year (https://www.wealthfront.com/tax-optimized-direct-indexing). Because this “tax alpha” is so variable (Wealthfront picks very specific years from which to present this data) we would rather make a more conservative claim that customers can expect an advantage of approximately .80% average additional gains per year.
It is important to note that all of these estimates trump management fees and make the tax advantage of our approach one of the most important financial considerations in selecting a provider.
|Minimum Investment Amount||$3,000||No||Varies||$500 – $2,000,000||Varies|
|Total Portfolio Advisory and Optimization
|Easy Transparency Into What You Own||Yes||No (Click here to see what’s hiding in a Betterment Portfolio)||No||No||No
|Socially & Environmentally Responsible Options||Yes||No||Yes/Limited||Yes||Yes|
|Tailored to Your Unique Values||Yes||No||No||No||No|
|Make Changes Any Time, Including Divest-Invest from Companies Based on Their Behavior
|See Actions Trending Among Others Who Share Your Values||Yes||No||No||No||No|
|See Your Impact||Yes
Disclaimer: The information in this chart was gathered from the websites of the organizations themselves and third party websites as cited directly. It is updated periodically. However, we make no guarantees as to accuracy. Information may change in-between updates, and it is not meant to guide specific investment decisions. We recommend you conduct your own research before making a final decision on a service provider. In so doing, please let us know if you see anything out-of-date on this table to help us keep keep it as relevant as possible.