Our robo-advisor rating methodology

How we rate robo-advisors

Our team evaluated robo-advisors based on various factors, including investment offerings, education, customer service and costs. 

How we choose the best products 

The first step in choosing the best robo-advisor is identifying the industry’s key players. The second is ranking them based on specific attributes. 

In addition to the factors mentioned above, we considered other financial services, robo-portfolio construction, performance and firm profiles. 

How many companies we reviewed

Our team evaluated 15 leading robo-advisors. We asked each company more than 30 questions to ensure we understood its products and services.

How we collect data

We use a manual process to collect data on ranking products. Our expert researchers gather information by visiting product pages and calling or emailing companies to confirm missing data points. 

The data’s life span is three months or six months. We review and refresh the data quarterly or semiannually. If needed, we also adjust the rankings at these times.

How many hours we spend reviewing

Ranking robo-advisor products takes up to 60 hours, from research to analysis. 

Our review also includes a detailed fact-checking process called the “quality assurance” phase. It can take up to 12 hours and is conducted over multiple stages.

There are typically three stages of QA. The first two stages require about three to four hours each. The final stage of quality assurance usually takes about three to four hours too.

Star rating scoring

Our scoring system helps determine and rank the best products. It uses a scale of one to five stars. 

The best product receives five stars, while the others are ranked against it proportionally.

For example, a product with a score that’s 80% as good as the first will receive four stars.

Methodology

We researched 15 robo-advisors to rank the best. The robo-advisors that made our list excelled across eight categories. 

These categories were divided into subcategories. They provide a complete picture of what investors can expect regarding offerings, education, customer service and more. 

Offerings

This category focused on the securities each robo-advisor offered. Robo-advisors with a wide range of investment options provide versatility for different investors. They can help you create a portfolio that aligns with your needs. 

We considered the following subcategories:

• Stocks.
• Mutual funds.
• Exchange-traded funds.
• Options.
• Forex.
• Futures.
• International stocks.
• Fractional shares.
• Cryptocurrency.
• Over-the-counter stocks.
• Cash management services.

Education

Educational resources can be incredibly valuable. This is especially true for new investors who want to learn how to develop a good investment strategy. They can also help you identify the steps to take to better understand concepts such as diversification and portfolio rebalancing.

Most robo-advisors offer basic educational resources. We prioritized firms that offered the following:

• Webinars.
• In-house research.
• Third-party research.

Customer service

Many investors never have to contact their brokerage firm. But if you have questions or run into issues with your account, you’ll want a robo-advisor with accessible support options. 

This category included the following subcategories:

• 24/7 support.
• Phone support.
• Email support.
• Chat support.

Other financial services

Robo-advisors rely on computer algorithms to construct your portfolio. We gave higher ratings to firms that offered a human element for more personalized financial planning. 

This category consisted of the following subcategories:

• Human advisory services offered.
• Minimum balance required for advisor access.
• Financial planning services offered.
• Advisory fee.

Robo-advisory costs

You’ll want to consider various costs when choosing a robo-advisor. Some charge lower fees. But it’s important to understand what you’re getting. For example, a robo-advisor that charges a higher advisory fee could be worth it if it offers more features that are important to you.

This category had the following subcategories:

• Minimum amount to invest.
• Startup fee.
• Advisory fee.
• Weighted-average expense ratio of the funds offered.

Robo-portfolio construction

We considered the factors that go into customizing a portfolio based on individual needs and goals. To do that, robo-advisors must get a good sense of each investor’s situation and offer different asset types for a diversified portfolio. 

This category was comprised of the following subcategories:

• Questionnaire form.
• Stocks included.
• ETFs included.
• Cash included.
• Mutual funds included.

Performance

Past performance doesn’t guarantee future results. And your portfolio’s return will depend on how it’s constructed. It can still be a good idea to research how well a robo-advisor performs against a benchmark like the S&P 500. 

We looked at the following based on research from Condor Capital Wealth Management:

• Three-year return above or below a benchmark return.
• Performance ranking.

Firm profile

Your investment portfolio is a crucial part of your overall financial plan. It’s important to invest with a firm that has a solid financial track record. 

To evaluate each firm’s profile, we considered the following:

• Assets under management.
• Better Business Bureau rating.

Best robo-advisors

Here’s the list of factors and weightings for our best robo-advisor ranking:

• Offerings: 15%.
• Robo-advisory costs: 15%.
• Robo portfolio construction: 15%.
• Performance: 15%.
• Education: 10%.
• Customer service: 10%.
• Other financial services: 10%.
• Firm profile: 10%.

Our goal in ranking the best robo-advisors was to find options that suited a range of investors, from beginners to veterans. That's why we heavily emphasized offerings, costs, portfolio construction and performance. These factors matter no matter what type of investor you are. 

View the best robo-advisors to see which one makes sense for you.

USA TODAY Blueprint’s editorial standards

Our writers and editors, along with our data team, fact-check every article to ensure we have the most accurate and up-to-date information. We use a data-driven methodology based on what investors value most to determine each rating.

We pride ourselves on our journalistic integrity. Our goal is to empower our readers to make sound financial decisions. Advertisers do not influence our content, opinions or evaluations.