What You Need to Know
- Betterment announced $29 billion in AUM as of March 31, almost 50% higher than a year ago.
- New CEO Sarah Levy said the firm added a record 56,000 new clients in Q1, up 116% year-over-year.
- It reported record-breaking assets for Betterment for Advisors and Betterment 401(k) but did not provide details.
Betterment, one of the largest independent digital advisors, has announced a record-breaking close to the first quarter of 2021, with total assets totaling $29 billion, almost 50% higher than a year ago.
All three of its business units — retail, retirement and advisors — increased engagement over the past 12 months.
In the first full quarter under the leadership of new CEO Sarah Levy, the company added a record 56,000 new clients to the platform, up 116% year-over-year. Net client deposits grew by more than $1.5 billion, or 118% year-over-year.
Betterment will be adding 17,000 new clients, with approximately $190 million in assets, when it completes its purchase of Wealthsimple’s U.S. book of business, which is expected at the end of June.
“Our investing platform was built for 2020,” Levy in a statement. “Despite tumultuous markets, we helped our clients stay on track to meet their long-term financial goals rather than react to short-term market fluctuations.”
Schwab also reported over 50% year-over-year growth in its digitally advised assets through the first quarter of 2021, said David Goldstone, manager of research and analytics for Backend Benchmarking and The Robo Report.
“Robo-advice witnessed strong growth in 2020,” Goldstone said. “The pandemic has given robo-advisors a tailwind as Americans have adjusted to manage more of their lives from home. Multiple providers reported surges in account growth during periods of increased market volatility in 2020. ”