In today’s fast-paced, tech-driven world, robo-advisors have become a go-to solution for investors seeking hands-off portfolio management. With minimal fees, intelligent algorithms, and personalized strategies, these platforms offer an appealing alternative to traditional financial advisors. But which robo-advisor actually delivers the highest returns?
While no platform can guarantee performance, several stand out for their smart asset allocation, low fees, and advanced features like tax-loss harvesting. Let’s explore the top robo-advisors in the U.S. for 2025—and assess which ones have historically provided the best returns.
1. Wealthfront
- Management Fee: 0.25%
- Minimum Investment: $500
Wealthfront is consistently ranked as a top-performing robo-advisor thanks to its innovative use of automation and tax-optimization features. It builds diversified portfolios using low-cost ETFs across domestic and international equities, bonds, real estate, and natural resources.
One of Wealthfront’s biggest advantages is daily tax-loss harvesting, which can improve after-tax returns significantly over time. For accounts over $100,000, it also offers direct indexing, which mimics individual stocks for enhanced tax efficiency.
While average annual returns depend on your chosen risk level, a moderate (60/40) portfolio at Wealthfront has historically earned returns in the 7% to 9% range over the long term—sometimes higher during bull markets. In strong years like 2023 and 2024, some portfolios earned over 20%.
2. Betterment
- Management Fee: 0.25% (Digital Plan)
- Minimum Investment: None
Betterment is one of the oldest and most well-known robo-advisors, and it has built a reputation for strong customer support and intuitive tools. Like Wealthfront, it uses ETFs to build portfolios tailored to your risk preferences and goals, such as retirement, emergencies, or general investing.
Betterment also offers tax-loss harvesting, rebalancing, and smart dividend reinvestment. Its returns are generally in line with Wealthfront for similar risk profiles. For users looking for more personalized advice, Betterment also offers a Premium Plan with human advisor access at 0.40% annually.
Typical long-term returns range between 6% and 9% annually, depending on market conditions and portfolio composition.
3. SoFi Automated Investing
- Management Fee: $0
- Minimum Investment: $1
SoFi offers a compelling value for beginner investors. While its portfolios are relatively simple compared to Wealthfront or Betterment, SoFi Automated Investing charges no management fee, which means you keep more of your gains.
It provides automated rebalancing and goal-based investing but lacks features like tax-loss harvesting. For investors in low-tax brackets or those just starting out, the free management can be a huge benefit.
In terms of returns, SoFi portfolios track the broad market using ETFs, and performance typically mirrors that of standard index funds—usually 6% to 10% annually over time. Its simplicity works well for long-term, passive investors.
4. M1 Finance
- Management Fee: $0 (for standard users)
- Minimum Investment: $100
M1 Finance blurs the line between robo-advisor and DIY investing. It allows users to build customized portfolios (called “pies”) of stocks and ETFs, while still automating contributions and rebalancing. It’s ideal for intermediate investors who want more control without giving up automation.
Returns on M1 Finance vary widely depending on how you build your portfolio. If you mirror an S&P 500 ETF or growth stocks, you could see high returns—some users have achieved over 20% in strong market years. However, poor diversification or emotional decision-making can drag performance down.
This platform is best for confident investors who want robo tools without giving up personal choice.
5. Fidelity Go
- Management Fee: $0 for accounts under $25,000
- Minimum Investment: $10
Fidelity Go is Fidelity’s entry into the robo-advisor space. It offers professional portfolio management using Fidelity Flex mutual funds, with no fees for small accounts. For accounts above $25,000, the fee is a modest 0.35%.
Because it relies on actively managed mutual funds, returns can differ slightly from ETF-based platforms. However, the long-term performance is competitive, especially for conservative or moderate investors.
Annualized returns vary but typically fall within the 5% to 8% range for balanced portfolios.
What Impacts Returns Most?
While returns are an important factor, remember that past performance does not guarantee future results. Robo-advisor returns depend on:
- Your asset allocation (stocks vs. bonds)
- Market conditions
- Investment horizon
- Fees and taxes
- Rebalancing discipline
Robo-advisors generally perform best over long timeframes. Short-term volatility may skew performance, but automated tools like rebalancing and tax-loss harvesting help keep your portfolio optimized.
Final Verdict: Which Offers the Highest Returns?
If you’re focused purely on maximizing returns after fees and taxes, Wealthfront is a standout choice. Its combination of low fees, daily tax-loss harvesting, and direct indexing for larger accounts gives it a long-term edge.
For new investors or those with small balances, SoFi and M1 Finance provide excellent fee-free options—though returns depend more on how you allocate your funds. Betterment remains a balanced, user-friendly platform with dependable returns and strong tools.
Ultimately, the “best” robo-advisor depends on your goals, account size, and willingness to manage your investments. But rest assured: with any of these platforms, you’re taking a smart step toward long-term wealth.