Betterment Buys Ellevest’s Automated Investing Business

Betterment, the largest independent digital investment advisor in the United States, said it has taken over the automated investing business of Ellevest. Ellevest, a company built to help women grow their wealth, will now focus on financial planning and wealth management. This shift allows both companies to focus on what they do best.

Betterment serves more than 900,000 customers across the country and handles over $55 billion in assets. The company said this move follows other recent purchases. These include Wealthsimple’s U.S. advisory accounts 4 years ago and Marcus Invest accounts from Goldman Sachs last year. Betterment sees this as another step in strengthening its role in digital investing.

Betterment Aims To Assist Investors Build Wealth

Sarah Levy, leader of Betterment, said this deal helps the company grow its place in digital investing. She noted that Betterment is excited to welcome Ellevest clients and help them build their wealth. According to Sarah, Betterment looks forward to guiding these investors as they work toward their financial goals.

Dr. Sylvia Kwan, leader and chief investment officer of Ellevest, said the company is shifting focus. She believes that Betterment is the right place for Ellevest’s digital-first clients because it offers features many of them want. According to Kwan, joint accounts and different cash options are some of the key features that Betterment provides.

Betterment combines strong technology with human support to help customers. The company revealed that Ellevest clients who move to Betterment will have access to automated investing, diversified portfolios, and tax-smart tools. The firm also offers different types of accounts, planning tools, learning resources, and advisors who can guide investors.

Ellevest is expected to transfer its user’s accounts by April 17, 2025, once all conditions are met. Betterment said clients will have the option to opt-out if they do not want their accounts moved. The company also said it is only taking over Ellevest’s automated investing accounts and assets. The deal does not include Ellevest’s other services, staff, or technology.

Ellevest Plans To Keep Assisting Wealthy Clients With Financial Planning

According to the update, Ellevest promises to continue helping wealthy clients with financial planning and investment services. The company said it will now focus on individuals, families, and institutions with at least $500,000 to invest. It added that this shift allows it to focus on areas where demand is high.

Betterment’s leadership believes this deal will help more customers reach their financial goals. The company shared that its tools and resources will support both new and existing clients. It remains focused on providing smart and simple investing options for investors.

Both companies see the purchase as a strong step toward the future. Betterment said it is strengthening its position in digital investing, while Ellevest highlighted that it is expanding its focus on wealth management. Both firms are confident that this move will help them grow.