Acorns is a popular investment app that aims to make investing accessible and easy for everyone. The app offers a simple, low-cost passive investing solution that's well-suited to new investors. With Acorns, you can round up your transactions to the nearest dollar and start investing with as little as $5. The app also offers basic, low-cost deposit accounts that encourage saving and investing.
While the app's user interface and investment options are relatively basic compared to other investment apps, Acorns offers a unique feature that sets it apart from the rest. The app's round-up feature allows users to automatically invest their spare change from everyday purchases. For example, if you buy a coffee for $3.50, Acorns will round up the transaction to $4.00 and invest the extra $0.50 in your chosen portfolio.
Acorns offers five different investment portfolios, ranging from conservative to aggressive. Each portfolio is comprised of a selection of low-cost ETFs (exchange-traded funds) that are diversified across asset classes and sectors. The app's portfolios are designed by an investment team of experts, who rebalance them regularly to maintain optimal performance.
One of the main benefits of using Acorns is its low cost. The app charges a monthly fee of $1 for accounts with less than $1 million, making it an affordable option for new investors. However, the app's fees can add up over time, especially for small accounts. For example, if you invest $100 and earn a 7% annual return, you'll pay $12 in fees over the course of a year.
Another potential drawback of using Acorns is its limited investment options. The app only offers five pre-built portfolios, which may not be suitable for all investors. Additionally, the app does not offer individual stock trading, which may be a dealbreaker for some investors.
Overall, Acorns is a great option for new investors who are looking for a simple, low-cost way to start investing. However, more experienced investors may find the app's limited investment options and lack of individual stock trading to be a drawback.
If you're considering using Acorns, it's important to understand the app's features, fees, and usability. You can learn more about the app by reading our Acorns review on Benzinga. Our review breaks down everything you need to know about the app, from cost and fees to investment options and expert ETF portfolios.
In addition to Acorns, there are many other investment apps available that offer similar features and benefits. We chose SoFi Invest as our best investment app for beginners due to its low fees, broad range of investment options, and user-friendly interface. Other categories include best for automated investing, best for active trading, and more.
Acorns and Stash are two of the most popular finance apps around, and they both offer a way for customers to save and invest their money. However, there are some key differences between the two apps. Stash offers a wider range of investment options, including individual stocks and ETFs, while Acorns focuses on passive investing with pre-built portfolios.
In conclusion, Acorns is a great option for new investors who are looking for a simple, low-cost way to start investing. The app's round-up feature and expertly curated portfolios make investing accessible and easy for everyone. However, more experienced investors may find the app's limited investment options and lack of individual stock trading to be a drawback. As with any investment app, it's important to do your research and consider your own investment goals and preferences before choosing a platform.