The press may have been highly focused on Betterment and Wealthfront, who now each hold over $2.5B AUM, but there are many other robo-advisors emerging. Moreover, incumbents such as Vanguard and Schwab have been flexing their muscles in the space as they hold much larger amounts of AUM. Some say the recent feud between Betterment and Wealthfront is largely due to the pressure of gaining market traction in such a proliferated market.
As the robo-adviser movement gains traction and giants such as Schwab and Vanguard flex their muscles in the space, competitors are trying to outmaneuver each other to survive Robo-adviser Betterment has caught up to long-time competitor Wealthfront in assets under management. The New York-based automated investment service Betterment recently surpassed 120,000 client accounts and its AUM just hit $2.52 billion-plus, according to the company's latest ADV. Although the June 24 ADV for Wealthfront, which is based in Palo Alto, Calif., says the company is at $2.51 billion in AUM with about 35,500 client accounts, a spokeswoman for the platform said its AUM is now approximately $2.56 billion as of July 30. Betterment also has an adviser-facing version called Betterment