Stash vs Acorns vs Betterment: Which Investing App Wins?
Ready to dip your toes into the world of investing but feeling overwhelmed? You’re not alone! The market can seem intimidating, but thankfully, apps like Stash and Acorns have made it easier than ever for beginners to start building wealth. These platforms offer accessible ways to invest, even with small amounts of money, and can be a great starting point for your financial journey.
Stash and Acorns both aim to simplify the investment process, but they approach it in slightly different ways. Stash emphasizes financial education and offers a wider range of investment options, while Acorns focuses on micro-investing, rounding up your purchases to invest the spare change. Understanding these differences is key to choosing the right platform for your needs.
This comparison delves deep into the features, fees, and overall user experience of Stash and Acorns to help you determine which app aligns best with your financial goals. We’ll also briefly touch on Betterment, a more established robo-advisor, to provide a broader perspective on the investment landscape. By the end, you’ll have a clear understanding of which platform, whether it’s Stash, Acorns, or something else, is the perfect fit for you!
Specs at a Glance
| Feature | stash | acorns |
|---|---|---|
| Minimum Investment | $5 | $5 |
| Account Types | Taxable, Retirement | Taxable, IRA, UTMA/UGMA |
| Investment Style | Fractional Shares | ETFs |
| Automatic Investing | Yes | Yes |
| Round-Ups | Yes | Yes |
| Educational Resources | Yes | Yes |
| Mobile App | Yes | Yes |
| Goal Setting | Yes | Yes |
| Portfolio Customization | Limited | Yes |
| Rebalancing | Automatic | Automatic |
| Customer Support | Email, Chat | Email, Phone |
| Socially Responsible Investing (SRI) | Yes | Yes |
Feature-by-Feature Breakdown
Investment Minimum
- Stash: Stash typically has a very low minimum investment, sometimes even allowing you to start with as little as $5. This makes it accessible to beginners and those with limited funds. However, the subscription fee might eat into small investments initially.
- Acorns: Acorns is known for its “round-up” feature, which means you can start investing with very small amounts, essentially spare change. There is a monthly fee, but it’s designed to be manageable for most users.
- Winner: stash
Investment Options
- Stash: Stash offers a mix of individual stocks, ETFs, and thematic portfolios, allowing for some customization and the ability to invest in companies you know and like. This can be great for beginners. However, it can also lead to over diversification.
- Acorns: Acorns primarily focuses on diversified portfolios built from ETFs. The portfolios are pre-built based on your risk tolerance. This is simple, but limits customization.
- Winner: stash
Fees
- Stash: Stash charges a monthly subscription fee, which can be a drawback for small accounts. There may be additional fees for specific services.
- Acorns: Acorns also charges a monthly subscription fee, which can be a drawback for small accounts.
- Winner: acorns
Educational Resources
- Stash: Stash provides educational articles, videos, and guides to help users learn about investing. They aim to make investing more accessible to beginners.
- Acorns: Acorns also offers educational content, but it’s generally less extensive than Stash’s.
- Winner: stash
Automated Investing
- Stash: Stash allows for recurring investments and offers automated features, such as the ability to set up weekly or monthly deposits.
- Acorns: Acorns excels at automated investing, particularly through its “round-up” feature, which automatically invests your spare change.
- Winner: acorns
Portfolio Customization
- Stash: Stash offers more portfolio customization options, allowing users to choose individual stocks and ETFs, as well as build their own thematic portfolios.
- Acorns: Acorns offers pre-built portfolios based on risk tolerance, limiting the ability to customize investments.
- Winner: stash
Account Types
- Stash: Stash offers a variety of account types, including individual taxable accounts, retirement accounts (traditional and Roth IRAs), and custodial accounts.
- Acorns: Acorns offers taxable accounts and retirement accounts (traditional and Roth IRAs).
- Winner: stash
User Experience
- Stash: Stash has a user-friendly interface designed for beginners, making it easy to navigate and understand. The app is generally well-regarded.
- Acorns: Acorns also has a clean and intuitive user interface, particularly known for its simplicity and ease of use.
- Winner: acorns
Winner by Category
| Category | Winner |
|---|---|
| Fractional Shares | stash |
| Ease of Use | acorns |
| Portfolio Customization | stash |
| Automated Investing | acorns |
| Educational Resources | Tie |
What They Have in Common
- Accessibility: Both platforms are designed to be user-friendly, making them accessible to beginners with little to no investment experience.
- Automated Investing: Both stash and acorns offer automated investing features, allowing users to set up recurring investments and round-ups for effortless saving.
- Mobile Apps: Both platforms provide mobile apps, enabling users to manage their investments and track their progress on the go.
- Goal Setting: Both platforms allow users to set financial goals, providing motivation and a clear focus for their investment strategy.
- Educational Resources: Both stash and acorns offer educational content, helping users learn about investing and personal finance.
- Diversification: Both platforms offer diversified portfolios, reducing risk by spreading investments across various assets.
Stash Vs Acorns Vs Betterment Buying Guide
Stash Buying Guide
Stash is designed for beginners, offering fractional shares and educational resources to help users learn about investing. Its strength lies in its simplicity and ease of use, with a user-friendly app that guides you through the investment process. Stash provides pre-built portfolios, allowing you to invest based on your values or goals, such as sustainability or retirement. However, the subscription fees can be a consideration, especially for smaller accounts. The platform also offers banking features, which some users may find convenient.
Acorns Buying Guide
Acorns focuses on micro-investing, rounding up your purchases to the nearest dollar and investing the spare change. This automated approach makes it incredibly easy to start investing with small amounts of money. Acorns also offers a found money program, which earns you cash back when shopping at partner retailers. While convenient, the investment choices are limited to a few pre-built portfolios based on risk tolerance. The fees are relatively low, but can add up over time, and the investment options are less customizable than other platforms.
Betterment Buying Guide
Betterment is a robo-advisor that provides automated investment management. It creates a diversified portfolio based on your risk tolerance and financial goals, rebalancing it automatically. Betterment offers access to a wide range of ETFs (Exchange Traded Funds), offering more diversification and customization than Acorns. It provides tax-loss harvesting to potentially reduce your tax liability. The platform provides a more sophisticated approach to investing, but the minimum investment can be higher than Stash or Acorns, and the fees are slightly higher.
Stash: Key Features
Stash emphasizes education and fractional shares, making it accessible for beginners. You can invest in stocks, ETFs, and even crypto (depending on your subscription). Stash offers a debit card and banking features, along with personalized guidance and educational content. Its user-friendly interface simplifies the investment process. However, the monthly fees might be a concern for those with small account balances, as they might eat into investment returns.
Acorns: Key Features
Acorns simplifies investing through its round-up feature. It automatically invests spare change from your everyday purchases. Acorns offers a simple, pre-built portfolio based on your risk profile. While it automates the investment process, the investment choices are limited to a handful of pre-selected portfolios. The “Found Money” feature offers cash back rewards from various retailers, adding an extra layer of incentive to invest.
Betterment: Key Features
Betterment offers a more comprehensive robo-advisor experience with automated portfolio management. It builds and manages a diversified portfolio based on your risk tolerance and goals. Betterment provides tax-loss harvesting, which can potentially improve returns. It offers access to a wider range of ETFs, allowing for greater diversification compared to Acorns. While it is more sophisticated, its fees are higher than the other two platforms.
Who Should Buy What?
Buy stash If…
- You want to invest in fractional shares of individual stocks.
- You prefer a platform with a broader range of investment options beyond ETFs.
- You are looking for more control over your portfolio’s composition.
- You’re interested in learning more about individual companies.
Buy acorns If…
- You prioritize a hands-off, automated investing experience.
- You want a simple, diversified portfolio managed for you.
- You prefer a platform focused on ETFs and index funds.
- You want a robust round-up feature.
Frequently Asked Questions
What is Stash?
Stash is an investment app designed for beginners. It offers fractional shares, allowing users to invest with small amounts of money. Stash emphasizes education and provides tools to learn about investing. It also offers banking features and a debit card. It’s a user-friendly platform that simplifies the investment process.
What is Acorns?
Acorns is a micro-investing app that automatically invests your spare change. It rounds up your purchases to the nearest dollar and invests the difference. Acorns offers pre-built portfolios and a “Found Money” program. It’s designed to make investing effortless and accessible for those starting out with limited funds.
What is Betterment?
Betterment is a robo-advisor that provides automated investment management. It creates and manages a diversified portfolio based on your risk tolerance and financial goals. Betterment offers tax-loss harvesting. It provides a more sophisticated investment approach compared to Stash and Acorns, managing a portfolio for you.
Which platform is best for beginners?
Stash and Acorns are both great for beginners. Stash offers educational resources and fractional shares, while Acorns automates the investment process through its round-up feature. Betterment is also good, but its advanced features and slightly higher fees might be better for those who are a little more comfortable.
Which platform offers the lowest fees?
Acorns generally has the lowest fees, especially for smaller account balances. Stash has a tiered fee structure, while Betterment’s fees are based on the amount you invest, generally. Always check the fee structure to understand how much you’ll be paying.
Which platform offers the most investment options?
Betterment offers the most investment options, providing access to a wide range of ETFs and allowing for a more diversified portfolio. Stash offers a good selection of stocks and ETFs, while Acorns’ investment options are limited to a few pre-built portfolios based on risk profiles.
Which platform is best for long-term investing?
Betterment is generally best for long-term investing, given its focus on diversified portfolios and automated rebalancing. Acorns and Stash can also be used for long-term investing, but Betterment’s advanced features and tax-loss harvesting capabilities make it a stronger choice for long-term financial goals.
Final Verdict
Stash, Acorns, and Betterment all cater to different investor needs. Acorns excels in its simplicity and automated investing, making it ideal for beginners. Betterment provides a more comprehensive, automated investment management experience with greater diversification and tax-loss harvesting. Stash offers a balance of ease of use and educational resources.
Winner: Betterment