Updated 2026-03-20
Betterment vs Employee Fiduciary 401(k) Comparison
Compare Betterment at Work (#20, 6.7/10) and Employee Fiduciary (#24, 6.2/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Betterment | Employee Fiduciary |
|---|---|---|
| Overall Score | 6.7/10 | 6.2/10 |
| Rank | #20 | #24 |
| AUM | $45 billion | $6 billion |
| Participants | 400,000 | 80,000 |
| Plan Sponsors | 1,500+ | 3,000+ |
| Founded | 2010 | 2004 |
Ratings Comparison
| Category | Betterment | Employee Fiduciary |
|---|---|---|
| Fees & Costs | 4.0/5 | 4.8/5 |
| Investment Options | 3.2/5 | 3.2/5 |
| Customer Service | 4.0/5 | 4.2/5 |
| Mobile App | 4.4/5 | 2.5/5 |
Fee Comparison
| Fee Type | Betterment | Employee Fiduciary |
|---|---|---|
| Admin Fees | $150/month + $6/employee | $1,500/year + $30/participant |
| Expense Ratios | 0.03% - 0.15% | 0.03% - 0.15% |
| Trading Fees | $0 | $0 |
| Advisory Fees | Included in platform fee | Included as 3(38) fiduciary |
Betterment Strengths
- Fully automated portfolio management
- Tax-loss harvesting and tax-smart strategies
- Clean, modern user interface
- Low-cost ETF portfolios
Employee Fiduciary Strengths
- Full 3(38) investment fiduciary services included
- Among the lowest all-in costs
- Consistently rated best by independent reviewers
- Low-cost Vanguard fund lineup
Rollover, Loans & Withdrawals
| Feature | Betterment | Employee Fiduciary |
|---|---|---|
| Rollover Platform | Betterment App | Employee Fiduciary Portal |
| Loans Available | No | Yes |
| Withdrawal Methods | Online via Betterment app, Email support | Phone (877-401-5100), Online portal |
| Distribution Options | Lump sum, Partial withdrawal, Rollover to IRA, Required Minimum Distributions | Lump sum, Partial withdrawal, Rollover to IRA, Required Minimum Distributions |
Which Should You Choose?
Choose Betterment if you want:
- Tech companies
- Startups
- Hands-off investors
- ESG-conscious employers
Choose Employee Fiduciary if you want:
- Cost-conscious small businesses
- Employers wanting fiduciary protection
- Index fund believers
- Plan sponsors seeking simplicity
Our Verdict: Betterment vs Employee Fiduciary
Betterment at Work wins this comparison with a score of 6.7/10 vs 6.2/10. Betterment excels with fully automated portfolio management, making it the stronger choice for most investors in this matchup. However, the best choice ultimately depends on your specific needs, employer plan availability, and investment preferences.
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Betterment vs Employee Fiduciary: Complete 401(k) Comparison for 2026
Choosing between Betterment at Work and Employee Fiduciary for your 401(k) is an important decision that affects your retirement savings. Betterment offers robo-advisor while Employee Fiduciary is known for 3(38) fiduciary. In terms of fees, Betterment charges 0.03% - 0.15% expense ratios compared to Employee Fiduciary's 0.03% - 0.15%. Betterment manages $45 billion in assets and serves 400,000 participants, while Employee Fiduciary has $6 billion AUM and 80,000 participants.
Key Differences: Betterment vs Employee Fiduciary
When comparing Betterment and Employee Fiduciary, consider their core strengths: Betterment excels with fully automated portfolio management, while Employee Fiduciary stands out for full 3(38) investment fiduciary services included. Both providers offer a wide range of investment options including target-date funds, index funds, and managed accounts. Betterment's customer service rating is 4.0/5 compared to Employee Fiduciary's 4.2/5. For mobile experience, Betterment scores 4.4/5 while Employee Fiduciary scores 2.5/5.
Which Provider is Right for You?
Choose Betterment if you prioritize tech companies. Choose Employee Fiduciary if you're looking for cost-conscious small businesses. Your decision should also consider your employer's plan availability, fee sensitivity, desired investment options, and customer service expectations. For detailed reviews, visit our individual Betterment and Employee Fiduciary provider pages.
Frequently Asked Questions
Betterment at Work scores higher in our 2026 rankings with 6.7/10. Betterment is best for tech companies, while Employee Fiduciary is best for cost-conscious small businesses. The right choice depends on your employer's plan and your priorities.
Betterment charges expense ratios of 0.03% - 0.15% with admin fees of $150/month + $6/employee. Employee Fiduciary charges 0.03% - 0.15% expense ratios with admin fees of $1,500/year + $30/participant. Betterment's fees rating is 4.0/5 compared to Employee Fiduciary's 4.8/5.
Yes, you can roll over between Betterment and Employee Fiduciary. Betterment uses Betterment App for rollovers, while Employee Fiduciary uses Employee Fiduciary Portal. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Betterment does not offer 401(k) loans. Employee Fiduciary offers 401(k) loans.
Betterment scores 3.2/5 for investment options, while Employee Fiduciary scores 3.2/5. Both offer target-date funds, index funds, and managed accounts. Betterment's investment options include ETF Portfolios, Target Date Portfolios, Socially Responsible Portfolios. Employee Fiduciary offers Vanguard Index Funds, Target Date Funds, Bond Funds.
For small businesses, consider plan minimums and per-participant costs. Betterment is best for tech companies, startups, hands-off investors, esg-conscious employers. Employee Fiduciary is best for cost-conscious small businesses, employers wanting fiduciary protection, index fund believers, plan sponsors seeking simplicity. Compare admin fees: Betterment charges $150/month + $6/employee vs Employee Fiduciary's $1,500/year + $30/participant.
Pavlo Pyskunov
Managing Director & Investment Fund Director
Pavlo Pyskunov analyzes employer-sponsored retirement plans using IRS publications and DOL Form 5500 filings, helping workers maximize their 401(k) savings through data-driven guidance.
Last updated: 2026-03-20