Updated 2026-03-20
Betterment vs Vestwell 401(k) Comparison
Compare Betterment at Work (#20, 6.7/10) and Vestwell (#21, 6.5/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Betterment | Vestwell |
|---|---|---|
| Overall Score | 6.7/10 | 6.5/10 |
| Rank | #20 | #21 |
| AUM | $45 billion | $30 billion |
| Participants | 400,000 | 300,000 |
| Plan Sponsors | 1,500+ | 25,000+ |
| Founded | 2010 | 2016 |
Ratings Comparison
| Category | Betterment | Vestwell |
|---|---|---|
| Fees & Costs | 4.0/5 | 3.6/5 |
| Investment Options | 3.2/5 | 3.8/5 |
| Customer Service | 4.0/5 | 3.6/5 |
| Mobile App | 4.4/5 | 3.5/5 |
Fee Comparison
| Fee Type | Betterment | Vestwell |
|---|---|---|
| Admin Fees | $150/month + $6/employee | Set by advisor/distributor |
| Expense Ratios | 0.03% - 0.15% | 0.03% - 1.0% |
| Trading Fees | $0 | $0 |
| Advisory Fees | Included in platform fee | Set by financial advisor |
Betterment Strengths
- Fully automated portfolio management
- Tax-loss harvesting and tax-smart strategies
- Clean, modern user interface
- Low-cost ETF portfolios
Vestwell Strengths
- Modern API-first technology platform
- White-label options for advisors
- Open architecture investment lineup
- Integrates with 100+ payroll providers
Rollover, Loans & Withdrawals
| Feature | Betterment | Vestwell |
|---|---|---|
| Rollover Platform | Betterment App | Vestwell Portal |
| Loans Available | No | Yes |
| Withdrawal Methods | Online via Betterment app, Email support | Through financial advisor, Plan administrator portal, Phone support |
| Distribution Options | Lump sum, Partial withdrawal, Rollover to IRA, Required Minimum Distributions | Lump sum, Partial withdrawal, Installment payments, 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 Vestwell if you want:
- Financial advisors
- Payroll companies
- Institutional distributors
- State IRA mandate compliance
Our Verdict: Betterment vs Vestwell
Betterment at Work wins this comparison with a score of 6.7/10 vs 6.5/10. 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 Vestwell: Complete 401(k) Comparison for 2026
Choosing between Betterment at Work and Vestwell for your 401(k) is an important decision that affects your retirement savings. Betterment offers robo-advisor while Vestwell is known for white label. In terms of fees, Betterment charges 0.03% - 0.15% expense ratios compared to Vestwell's 0.03% - 1.0%. Betterment manages $45 billion in assets and serves 400,000 participants, while Vestwell has $30 billion AUM and 300,000 participants.
Key Differences: Betterment vs Vestwell
When comparing Betterment and Vestwell, consider their core strengths: Betterment excels with fully automated portfolio management, while Vestwell stands out for modern api-first technology platform. 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 Vestwell's 3.6/5. For mobile experience, Betterment scores 4.4/5 while Vestwell scores 3.5/5.
Which Provider is Right for You?
Choose Betterment if you prioritize tech companies. Choose Vestwell if you're looking for financial advisors. 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 Vestwell 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 Vestwell is best for financial advisors. 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. Vestwell charges 0.03% - 1.0% expense ratios with admin fees of Set by advisor/distributor. Betterment's fees rating is 4.0/5 compared to Vestwell's 3.6/5.
Yes, you can roll over between Betterment and Vestwell. Betterment uses Betterment App for rollovers, while Vestwell uses Vestwell Portal. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Betterment does not offer 401(k) loans. Vestwell offers 401(k) loans.
Betterment scores 3.2/5 for investment options, while Vestwell scores 3.8/5. Both offer target-date funds, index funds, and managed accounts. Betterment's investment options include ETF Portfolios, Target Date Portfolios, Socially Responsible Portfolios. Vestwell offers Open Architecture, Mutual Funds, Target Date Funds.
For small businesses, consider plan minimums and per-participant costs. Betterment is best for tech companies, startups, hands-off investors, esg-conscious employers. Vestwell is best for financial advisors, payroll companies, institutional distributors, state ira mandate compliance. Compare admin fees: Betterment charges $150/month + $6/employee vs Vestwell's Set by advisor/distributor.
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