US-based robo-advisor Betterment has purchased the automated investing business of compatriot Ellevest, a women-focused company.
As part of the acquisition, Betterment will take on Ellevest’s automated investing accounts and assets under management.
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This transfer will be effective on or about 17 April 2025, contingent on certain closing conditions, with clients having the provision to opt out of the transfer.
However, Betterment will not absorb the technology, staff, operations, or additional accounts of Ellevest.
Ellevest will continue to provide financial planning and wealth management services, focusing on clients with investments of at least $500,000.
Ellevest CEO and CIO Dr Sylvia Kwan said: “As we focus on our growing wealth management and financial planning business, Betterment was the natural home for our digital-first clients.
“On top of automated investing, Betterment offers features that many of our digital clients have expressed interest in, including joint accounts and other cash account options.”
Betterment said that the purchase will offer Ellevest clients access to “tax-smart” tools, as well as “diversified” portfolios.
Additionally, clients will benefit from a variety of account types, educational resources, planning tools, along with human advisors, further noted the company.
The latest deal continues Betterment’s expansion, following the purchase of Wealthsimple’s US advisory accounts in 2021 and Goldman Sachs’ Marcus Invest accounts last year.
At present, Betterment caters to over 900,000 customers and manages assets exceeding $55bn.
Betterment CEO Sarah Levy said: “This acquisition further cements our leadership in the digital investing space.
“We look forward to welcoming Ellevest’s clients to Betterment and to continuing to support them on their wealth-building journeys.”
Ellevest is claimed to be the eighth fastest-growing fee-only registered investment advisor in the US.
