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Updated: March 29, 2023

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Robo advisor concept, Business person hand pointing robo advisor icon on virtual screen.

Betterment vs. Ellevest vs. M1 Finance

Mongta Studio / Shutterstock


Updated: March 29, 2023

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Please be aware that some (or all) products and services linked in this article are from our sponsors.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Please be aware that some (or all) products and services linked in this article are from our sponsors.

In the space of only a little more than 10 years, robo-advisors have reshaped the financial technology landscape, making investing β€” along with concepts such as tax-loss harvesting and asset allocation β€” available to everyone. With low minimums and fees way lower than you'll find with a traditional advisor, robo-advisors are especially great for new investors. But which one should you pick?

Betterment is the granddaddy of the industry. But since its debut in 2008, a whole host of other robo-advisors have popped up. Some are continuations on the Betterment theme, while others take fresh and interesting approaches to investing. Ellevest and M1 Finance both bring something new to the table. Let's find out if one of these robo-advisors is right for you.

M1 Finance
Minimum to open account
401(k) assistance
Two-factor authentication
Advice options
Automated, human assisted
Socially responsible investing

About Betterment

Launched in 2008, Betterment was the first robo-advisor on the market. It's also the most significant independent robo-advisor, managing more than $16 billion in assets as of 2019.

Betterment includes tax-loss harvesting for all accounts and estimates a benefit of 0.77% per year in your after-tax returns.

Betterment logo

Over time Betterment has continually released new options and services through its platform, including advice from financial planners, tools to learn about investing, and tools to adjust your investments.

With its robo-advisor services, Betterment creates and then implements a portfolio based on your risk tolerance and goals. It also provides investors with regular asset reallocation, can reinvest your investment dividends, and can even utilize tax-loss harvesting on taxable accounts.

About Ellevest

Founded in 2015 by Sallie Krawcheck, Ellevest was explicitly built and definitively to cater to women's investing needs. Krawcheck previously worked as CEO for Merrill Lynch and Citi Private Bank and believed that the traditional investing advice and plans don't work for women.

Ellevest has a gender-specific investing algorithm that aims to close the investing gap between men and women. The robo-advisor reports that traditional investing advice costs women $320,000 throughout their lifetime. Ellevest wants to change that.

Ellevest logo

About M1 Finance

M1 Finance, on the other hand, is more like a hybrid of a robo-advisor and a traditional stock broker. Based in Chicago, M1 Finance has offered robo-advisor services since 2015. Unlike many other robo-advisors, M1 gives you the option to invest in whole shares or fractional shares. This robo-investor service offers more than 6,000 stocks and funds to choose from while building what M1 calls β€œPies.” The Pies are created using Modern Portfolio Theory (MPT). You also have the option to choose your own investments for your Pies, as you would at a traditional investment brokerage.

Most robo-advisors use MPT in their algorithms. Contrasting sharply with other robo-advisors, at M1, there is no intake form to determine your investment risk tolerance.

M1 Finance logo

With M1, you have the option to:

  1. 1.

    Build your own portfolio

  2. 2.

    Copy a portfolio designed by Wall Street experts

  3. 3.

    Use a robo-advised model portfolio

  4. 4.

    Combine portions of all the above strategies

M1 is built for long-term strategic investors and doesn't cater to the active trader. Its platform helps people invest and put their money to work β€” with no fees or much time commitment.

How are they the same?

All three services offer many features. First, let's take a look at how they're similar.

Features Details
Minimum investment None of the three robo-advisors require a minimum investment.
Investment account types All three offer individual taxable, Roth IRA, traditional IRA, Rollover IRA and SEP IRA accounts.
Investment types All three services allow you to invest in exchange traded funds (ETFs).
Portfolio rebalancing All three robo-advisors provide portfolio rebalancing.
Mobile apps All three services emphasize investing with an Android or Apple mobile device.

How are they different?

  • Betterment strives to be a complete investing experience and offers many tools to that end. For example, its Financial Advice Packages are individualized advice packages that zero in on specific life events, such as children or death. Betterment includes personalized action plans to meet these life events, general educational tools to help people get prepared on their own, and tailored help from a certified financial planner or licensed financial expert who's familiar with your specific plans.
  • Ellevest is perhaps the most different, since it specifically targets women investors. Its algorithm takes into account things like the wage gap, women leaving the workforce to have or raise children, and the fact that women live longer than men (on average).
  • M1 Finance toes the line between a traditional investment brokerage firm and a robo-advisor. It offers a wide array of services and investing options, which is appealing to many people.

Unique features

Features unique to Betterment

Betterment is a fiduciary, meaning it has to operate in its client's best financial interests, even if that means the company doesn't earn as much money. Fiduciaries have to follow the Advisor's Act, a law that lays out what an investment advisor is and what they're supposed to do.

Betterment offers tax-loss harvesting, which neither Ellevest nor M1 Finance does.

Features unique to Ellevest

Ellevest is also a fiduciary, like Betterment. However, what makes Ellevest unique is that it is the only one of these three companies to be founded by a woman and to cater to women. The robo-advisor's algorithm is gender-specific, taking into account women's financial needs.

Ellevest uses a β€œgender-specific salary curve” to determine its users' investing portfolios.

Features unique to M1 Finance

M1 Finance offers M1 Borrow, a line of credit that allows users to borrow up to 40% of the value of their portfolio.

M1 Finance also offers M1 Plus, a chance to do your banking with the company. Its checking and savings accounts come with higher interest than most of its competitors. The checking account offers 3.30% APY, the debit card offers 1% cash back on any purchase, access to a second trading window for your investments, and a 0.25% discount on any loans through the M1 lending program. M1 Plus costs $125 per year.

Minimum investments

Neither Betterment nor Ellevest nor M1 Finance requires a minimum deposit to get started. That makes all three accessible to new investors.

Winner β€” It's a three-way tie, since Betterment, Ellevest and M1 Finance don't require a minimum investment.

Annual fees

Betterment's annual fee for its digital platform is 0.25% of total investments. For the premium platform, you'll pay 0.40% of total investments.

Ellevest charges the same for its dDigital platform as Betterment (0.25%). A premium plan will run you 0.50% of total investments.

M1 has no annual fee for its robo-advisor services.

Winner β€” M1 Finance wins for not charging an annual fee.

Standout features


Betterment is almost continually releasing new features, which makes it a robo-advisor to watch. Most impressive, however, are its Charitable Giving program and its Socially Responsible Investing portfolio.

The Charitable Giving program allows investors to donate directly from their investment portfolios to charities. This is an innovative way for investors to make donations since it's easy to do and also a way to avoid capital gains tax on the donated shares.

The Betterment Socially Responsible Investing Portfolio is an option for those who are concerned about what their money funds. The robo advisor offers ETFs with a socially responsible bent, like removing oil and gas companies and focusing on companies that have made an effort to create socially responsible actions on their own.


Ellevest Premium offers one-on-one executive coaching from the company's career team. This service aims to help women beyond just their investing potential by addressing their earning potential, with tools to use in their careers (like negotiation).

M1 Finance

M1 gives you the option to invest in whole shares or fractional shares. This robo-investor service offers more than 6,000 stocks and funds to choose from while building what M1 calls β€œPies.” The Pies are created using Modern Portfolio Theory (MPT). You also have the option to choose your own investments for your Pies, as you would at a traditional investment brokerage.

Winner β€” Betterment is constantly improving its services by offering new features. That makes it a winner.

Socially Responsible Portfolios

With consumers becoming more interested in knowing what their money is supporting, socially responsible investing has become more popular. All three platforms offer varying degrees of SRI investing.

Betterment has a standard Broad Impact portfolio which chooses ETFs based on specific environment, social and governance criteria. In addition, Betterment offers two portfolios focused on either environmental or social issues. The Climate portfolio focuses on mitigating climate change by focusing on companies that reduce their carbon footprint, among other things. he Social Impact portfolio expands the Broad Impact portfolio by also including stocks of companies focused on diversity in the U.S.

M1 Finance includes a sustainable portfolio option or pie as it's referred to. You can also create your own SRI portfolio by investing in companies and ETFs that match your own sustainable or governance criteria. This is great for the DIY investor, but as you'll need to research all the companies and ETFs yourself, it could be a little daunting for those just getting started with investing.

Ellevest's impact portfolio includes companies with high standards for sustainability and ethical practices. It's also the only platform that offers a portfolio that actively focuses on investing in companies with more women leaders. Ellevest's impact portfolio also focuses on community development by investing in funds that support loans for affordable housing and community services.

Winner β€” Betterment offers the most variety of portfolio options focused on sustainable investing, but Ellevest is a runner up for its unique take on investing in women and the community.

Customer service

Betterment has phone and live chat service five days a week and email service seven days a week, although the hours are limited on weekends. The company also offers help on tax issues via its tax center, an online portal devoted to taxes.

Ellevest offers customer support via phone and live chat Monday through Friday during regular business hours. You can also email the customer service team.

M1 Finance provides phone customer support Monday through Friday from 9 a.m. to 5 p.m. Central Time, along with email.

Winner β€” Betterment offers more opportunities to reach customer support.


Betterment has an entire page devoted to the steps it takes to keep your information secure, including two-step authentication, allowing third-party apps (like Mint) view-only access, and background checks on all employees.

Ellevest accounts are SIPC insured up to $500,000, have customized password requirements and uses third party Folio for all transactions.

M1 participates in FINRA's BrokerCheck, a program that allows investors to research the background of investment advisors.

All three robo-advisors offer smart solutions for privacy concerns.

Who are they best for?

  • Betterment is best for brand-new investors. This service is best suited for people who want to learn about investing but are more inclined to set it and forget it after they've established their portfolio.
  • Ellevest is designed by women, for women. Its devotion to women and their specific needs is admirable, and it is leading robo-advisors into the territory of niche investing advice.
  • M1 Finance is best for long-term investors and those who want to have portfolio flexibility. The amount of customization that is possible in its investment offerings is impressive.

Which is the best?

We recommend all three services as among the best robo-advisors on the market. Betterment might have a slight edge, however, since it was the first robo-advisor and the one that has shown the rest of the industry β€œhow it's done.” However, the company continues to innovate and offer great features that should appeal to investors of all stripes.

About our author

Kara Perez
Kara Perez, Freelance Contributor

Kara Perez is a freelance personal finance writer. She is the founder of, a company that connects women and money. Kara lives in Austin, TX and believes in the power of budgeting and peanut butter.


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