Betterment Expands Horizons: Acquisition of Ellevest's Automated Investing Division

Betterment Expands Horizons: Acquisition of Ellevest’s Automated Investing Division

In a significant move within the financial services sector, Betterment, a prominent US-based digital investment advisor, has announced its acquisition of the automated investing division of Ellevest, a firm dedicated to serving women’s financial needs. This strategic acquisition aims to enhance Betterment’s offerings and solidify its position in the digital investing landscape.

Details of the Acquisition

The acquisition does not encompass Ellevest’s other accounts, technology, employees, or operational aspects. Betterment, which is headquartered in New York, caters to over 900,000 customers throughout the United States and manages an impressive portfolio of more than US$55 billion in assets.

This acquisition follows Betterment’s earlier strategic moves, including:

  • Acquisition of Wealthsimple’s US advisory accounts in 2021
  • Acquisition of Goldman Sachs’ Marcus Invest accounts in 2024

Statements from Leadership

Sarah Levy, CEO of Betterment, expressed enthusiasm about the acquisition, stating, “This acquisition further cements our leadership in the digital investing space. We look forward to welcoming Ellevest’s clients to Betterment and continuing to support them on their wealth-building journeys.”

Ellevest’s Continued Services

Ellevest, also based in New York, plans to persist in offering financial planning and wealth management services to high-net-worth individuals, families, and institutions with a minimum investment of US$500,000.

The automated investing clients from Ellevest are expected to transition to Betterment on or around April 17, 2025, contingent upon closing conditions. Clients will have the option to opt-out of this transfer.

Insights from Ellevest’s Leadership

Dr. Sylvia Kwan, CEO and CIO of Ellevest, remarked, “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.”

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Benefits for Ellevest Clients

Clients transitioning to Betterment will gain access to a multitude of services, including:

  • Automated investing
  • Diversified portfolios
  • Tax-efficient tools
  • Planning resources
  • Human advisors

This strategic acquisition not only expands Betterment’s offerings but also enhances the financial tools available to Ellevest clients, paving the way for more comprehensive wealth management solutions.

For more information about Betterment and its services, visit Betterment’s official website. You can also check out related articles on Investopedia for insights into the latest trends in digital investing.

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