Software · head to head
Vanguard vs Acorns
The short version
- Each has a real cost: Vanguard a 25 USD annual account service fee applies unless the account uses e-delivery, is a Cash Plus Account, is enrolled in an advisory service, or holds 1 million USD or more in qualifying assets; Acorns a flat monthly subscription regardless of balance, so $3 a month on Bronze is a heavy percentage on a small account
- They diverge on capability: Vanguard covers Low-cost index funds, Acorns covers Round-up investing.
Where they differ
Only the attributes on which Vanguard and Acorns actually diverge.
Identical on both: starting price (On request), free tier (No), platforms (Web, IOS, Android), user rating (Not yet rated), category (Unknown).
What each one covers
Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.
Only in Vanguard
- Low-cost index funds
- Commission-free trading
- Retirement accounts
- Financial advisors
- Investment accounts
Only in Acorns
- Round-up investing
- Automated investing
- Portfolio management
- Recurring investments
- Credit cards
- Debit cards
Both cover
- Bank accounts
- Web support
- IOS support
- Android support
What people use each for
The jobs each tool is most often brought in to do.
Vanguard
- Holding low cost index mutual funds and ETFs for long term investingnot Acorns
- Running IRAs and taxable brokerage accountsnot Acorns
- Employer retirement plan participationnot Acorns
Acorns
- Automated investing of spare change from everyday purchasesnot Vanguard
- Retirement saving through Acorns Later IRA accountsnot Vanguard
- Checking and high-yield savings alongside investingnot Vanguard
- Custodial investing and debit cards for children through Acorns Earlynot Vanguard
- Earning cashback that is invested rather than bankednot Vanguard
Where each one falls short
Documented limitations, not opinions. Every one is a constraint you would hit in normal use.
Vanguard
- A 25 USD annual account service fee applies unless the account uses e-delivery, is a Cash Plus Account, is enrolled in an advisory service, or holds 1 million USD or more in qualifying assets
- Broker assisted trades cost 25 USD each, waived only at 1 million USD in qualifying assets or with an advisory service
- Options trades carry a 1 USD per contract fee on top of zero commission
- Transaction fee mutual funds cost 20 USD per online trade below 1 million USD in qualifying assets, falling to 8 USD only at higher tiers
- Outgoing wire transfers cost 10 USD unless the account is a retirement account or holds 1 million USD or more
- Commission levels are tied to a Qualifying Assets balance, so the cheapest rates require 1 million USD or more
Acorns
- A flat monthly subscription regardless of balance, so $3 a month on Bronze is a heavy percentage on a small account
- The emergency savings account and the 1 percent IRA match need Silver at $6 a month
- Custom portfolios, Acorns Early for children and Money Manager are Gold tier only at $12 a month
- There is no free tier
Pricing, plan by plan
Vanguard
On request- Self-Directed Investor$undefined/month
- Low-cost index funds
- Commission-free trading
- Advisory Services$undefined/month
- All Self-Directed features
- Financial advisors
Acorns
On request- Lite$4.99/month
- Round-up investing
- Automated portfolio
- Plus$9.99/month
- All Lite features
- Checking account
- Dollar-based investing
- Premier$19.99/month
- All Plus features
- Premium investing
Which should you pick?
Choose Vanguard if
- You need low-cost index funds.
- You work on Web, IOS, Android.
- You also want commission-free trading.
Choose Acorns if
- You need round-up investing.
- You work on Web, IOS, Android.
- You also want automated investing.
Questions people ask
- Is Vanguard or Acorns better?
- Neither clearly leads. Vanguard starts at On request and Acorns at On request, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
- Which is cheaper, Vanguard or Acorns?
- Vanguard starts at On request and Acorns at On request.
- Does Vanguard or Acorns run on more platforms?
- Both run on Web, IOS, Android, so platform support will not decide this one for you.
- What is Vanguard best used for?
- Vanguard is most often used for holding low cost index mutual funds and etfs for long term investing, running iras and taxable brokerage accounts, employer retirement plan participation. Of those, holding low cost index mutual funds and etfs for long term investing and running iras and taxable brokerage accounts are not what Acorns is typically brought in for.
- What can Vanguard do that Acorns cannot?
- Vanguard covers Low-cost index funds, Commission-free trading, Retirement accounts, Financial advisors. Acorns covers Round-up investing, Automated investing, Portfolio management, Recurring investments. Both handle Bank accounts, Web support, IOS support, Android support.