Best Robo-Advisor for High Net Worth Investors

1. Vanguard Digital Advisor

The Vanguard Digital Advisor is our top pick Robo-advisor for wealthy investors looking to automate their investments. This is because it has been a trusted investment service for many years, providing low-cost mutual fund investment options. 

Founded in the 1970s, the Vanguard Group is an American company based in Pennsylvania. The firm is popularly known to manage one of the world’s largest line-ups of mutual funds and exchange-traded funds. 

When it comes to their Digital Advisor (DA) service, it was rolled out to the public in 2020. Therefore, it would be fair to say that it is still a relatively new product since it is being updated. Unfortunately, the service is not available outside the U.S. 

With that in mind, let’s have a look at some of its key features to help you determine if it's worth the money. 

Minimum Investment

As an investor, you can access the Vanguard Digital Advisor (DA) with a minimum investment of $3,000. While this requirement is on the lower side, high-net-worth investors can still benefit from the service. 

Management Fees

On the other hand, the service usually charges about 0.15% of your DA balance every year. This means that for a $3,000 portfolio, you will be charged around $4.50 annually as advisory fees. 

Investment Choices

Vanguard Digital Advisor uses the company’s proven investment strategy to provide ongoing investment management. Simply put, the service is centered on Vanguard’s well-diversified exchange-traded funds (ETFs).

2. Personal Capital

Next up, we have the Personal Capital service that continues to gain widespread popularity in the Robo-advisor industry. 

The company, which is headquartered in Redwood Shores, California was founded in 2009. Therefore, compared to Vanguard Digital Advisor, it has been in existence for over a decade.

That said, similarly to Vanguard DA, this service provides access to human financial advisors. This allows you to get personalized advice on wealth management from financial planners. You just contact them via email, phone, or web conference.

But where does Personal Capital shines? Well, it has to be in providing free financial tools. The service provides its users with free online tools to help them manage their investments. And the best part is that anyone can use them, including non-members.

That said, let’s now check out some of its key features:

Minimum Investment

The minimum account balance required to use this service is $100,000. As you can see, the fee is on the higher side compared to some competitors. This, therefore, makes the platform ideal for high-net-worth investors.

Management Fees

The Robo-advisor does not charge an account opening or termination fee. However, as a member, you need to pay a management fee of between 0.49% and 0.89% based on your accounted balance.

For instance, if your investment is $1 million and below, you will be charged 0.89%. However, for account balances over $10 million, the management fee is only 0.49%. This, therefore, means that the more money you have in your account, the lower the management fee. 

Investment Choices

Personal Capital creates investment portfolios out of bonds, cash, stocks, funds, and alternative investments. The portfolios usually contain ETFs, individual US stocks, private equity for qualified investors, and fixed income for some private clients.

3. Wealthfront

Wealthfront is yet another excellent Robo-advisor. This automated service company was founded in 2008 by Andy Rachleff and Dan Carroll and is based in Palo Alto, California. Unfortunately, it does not support clients residing outside of the U.S.

When it comes to services, the company offers holistic automated investment management that appeals to all investors. Some of the packages it offers include goal setting, planning, banking, and investing. 

However, what really stands out about the service is the fact that it provides free automated financial planning services. It does not matter whether it’s for early retirement, college, homeownership, or time off for travel. 

Here is a detailed look at some of its key features.

Minimum Investment

The initial investment needed is $500. This, therefore, makes it ideal for beginner investors. So, what makes the service ideal for wealthy clients?

Well, the service provides access to stock-level tax-loss harvesting to clients with over $100,000 in their accounts. This is designed to increase the expected returns by lowering the tax bill based on individual stock losses. 

Management Fees

Wealthfront stands out for charging a low management fee of 0.25% per year. The best part is that this fee does not vary regardless of your account balance or type. 

So, if you deposit $500 and another investor deposits $500,000, the advisory fee will be the same. Compared to other Robo-advisors, this is definitely more affordable. 

Investment Choices

The firm’s investment strategy employs low-cost exchange-traded funds (ETFs) that cover 12 asset classes. These asset classes include foreign stocks, U.S. stocks, dividend stocks, emerging market bonds, real estate, and emerging markets. 

Additionally, Wealthfront Robo-advisor offers two different cryptocurrency trusts for their clients to invest in. 

4. Betterment

Betterment is yet another clear leader among Robo-advisors. This American financial advisory firm was founded in 2008 and has been providing Robo-advising and cash management services since then. 

However, what stands out about this service is its wealth of features. For instance, it offers two service plans to choose from, including Digital investing and Premium investing. 

The difference between the two services is that the premium investing plan offers unlimited access to human advisors. But if you are a Digital investing customer, you will need to pay for the services of a human advisor. 

Now, let’s take a quick look at its key features so you can decide if the service is worth it. 

Minimum Investment

Thinking of trying out the Betterment Digital Investing service? If yes, you will be pleased to know that there is no minimum balance required. As such, it is best suited for beginner investors. 

However, when it comes to the Premium Investing plan, you are required to have a minimum balance of $100,000. This, therefore, makes it ideal for wealthy clients.

Management Fees

Just like the minimum balance, the management fees for Betterment digital service and premium service differ. 

For instance, the annual advisory fee for the digital service is 0.25%. This translates to $2.50 per year for every $1,000, which is relatively low. 

But if using the Premium service, you will be charged an annual management fee of 0.40%. This means that for every $100,000, you will pay $400 per year, which is slightly higher. 

Investment Choices

Betterment offers diversified portfolios consisting of low-cost exchange funds as well as mutual funds. These come from at least 14 asset classes, including fractional shares, smart-beta funds. 

On the flip side, though, their portfolio mix seems to lack exposure to non-market correlated assets such as commodities.

5. Zacks Advantage

Similar to Vanguard Digital Advisor (DA) service, Zacks Advantage is also a relatively new Robo-advisor. But don’t let this make you nervous about the service. This is because its parent company Zacks Investment Management has been around since 1992.

However, unlike some Robo-advisors that cater to the needs of new and high-net-worth clients, Zacks Advantage is primarily geared towards wealthier investors. 

But how does it work? Well, from a technology point of view, the platform functions as a Robo-advisor. However, it still employs an active management strategy. This is designed to help beat the general market. 

Without further ado, let’s go through some of the main features of Zacks Advantage. 

Minimum Investment

If you want to open an account at Zacks Advantage, you will need a minimum investment of $25,000.

Overall, this is relatively low in contrast with other best Robo-advisors for high net worth investors like Personal Capital. 

Management Fees

The management fees, on the other hand, vary depending on the tier you choose. Generally, the platform features a three-tiered fee structure ranging from 0.70% to 0.35%.

For accounts with a balance of between $25,000 and $99,999, the advisory fee is 0.70%. Accounts worth between $100,000 and $249,999, on the other hand, are charged a management fee of 0.50%. 

However, for accounts with a balance of more than $250,000, the advisory fee is only 0.35%. So, compared to other Robo-advisors like Vanguard Digital Advisor and Personal Capital, this fee is relatively low. 

Investment Choices

Zacks Advantage uses its own proprietary research to find ETFs that are likely to beat the market returns. This type of investment strategy is designed to help reduce risk during market downturns.

The company includes funds from various asset classes such as U.S. large and small-company stocks, international REITs, gold, and other precious metals.