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The Robo Report
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2024 AUM Growth
AUM Growth at Year End 2024
The robo-advice industry extended its post-pandemic rebound through 2024, with nearly every surviving platform reporting asset gains. Vanguard maintained its dominant position, combining its year-end $343.9 billion Personal Advisor Services franchise with $21.2 billion in its pure-digital Digital Advisor. Together, the firm’s advice assets climbed to roughly $365.1 billion, up from $311.9 billion a year earlier. Schwab’s Intelligent Portfolios also advanced, finishing 2024 near $89.5 billion, up from $80.9 billion at the end of 2023. Among workplace-focused providers, Edelman Financial Engines grew to $292.9 billion from $270.8 billion, while Morningstar Retirement Advice reached $160.4 billion.
All told, we estimate robo-advisors stewarded approximately $1.2 trillion at year-end 2024, marking a new industry high and underscoring the sector’s passage into middle age. This represents continued growth from the $1.089 trillion milestone reached in 2023, when the industry first crossed the trillion-dollar threshold.
Industry shakeouts continued. Goldman Sachs completed the transfer of its Marcus Invest accounts to Betterment in June 2024, exiting retail robo advice after failing to reach critical mass. JPMorgan Chase unplugged J.P. Morgan Automated Investing in the second quarter of 2024, migrating clients to its self-directed brokerage. While big banks stepped back, new competition arrived: in March 2025 Robinhood rolled out Robinhood Strategies, an algorithmic portfolio service.
The industry’s maturation continued to drive consolidation, with several notable exits completing during 2024. Goldman Sachs finalized the transfer of its Marcus Invest accounts to Betterment in June 2024, officially exiting retail robo-advice after failing to achieve critical mass despite its established reputation. JPMorgan Chase similarly unplugged J.P. Morgan Automated Investing in the second quarter of 2024, migrating clients to its self-directed brokerage platform. Ellevest, the women-focused robo, has also abandoned robo advice, deciding to instead focus on their higher net worth clients in a more traditional advisor business model. These moves reinforce the challenges even large financial institutions face in achieving scale and profitability in the robo-advice space, echoing difficulties that became apparent in 2023.
The established independent platforms continued to widen their lead over smaller rivals. Betterment’s assets expanded to $56.4 billion from $45.9 billion, and Wealthfront reached $35.3 billion. Niche players such as Acorns grew to $10.3 billion from $8.2 billion.
As the industry reaches full maturity, client growth continues to decelerate across major platforms. Betterment added clients by approximately 9% in 2024, representing a slight uptick from the 8% growth in 2023, but still dramatically below the 20% annual growth rates seen in 2018-2020. Wealthfront’s user base increased by around 8% after a decade of breakneck expansion, a substantial recovery from the 1.4% growth in 2023 but still far from the 42% growth achieved in 2018. Acorns’ net new sign-ups slowed to approximately 4%, continuing the deceleration from the 40%+ growth rates in 2019-2022 to 13% in 2023.
With the addressable pool of early-adopting clients largely tapped, maturation means future growth will depend more on deeper wallet share and value-added services than on raw customer acquisition. The industry is transitioning from its rapid growth stage to a mature phase, where the focus will be on maintaining growth while improving profitability.
2024 demonstrated the resilience of the robo-advisor business model even as growth dynamics shift. Platforms that combine rock-bottom pricing, tax-efficient portfolio management, and intuitive planning tools continued to gather assets. As regulation tightens and artificial intelligence features are beginning to emerge, the winners will be those that can marry scale with ever more personalized advice without sacrificing the cost advantage that made robo-advice appealing in the first place.
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Disclosures
In previous reports, the initial target asset allocation was calculated as the asset allocation at the end of the first month after the account was opened. In the Q3 2018 report, we adjusted our method to calculate the initial target asset allocation as of the end of the trading day after all initial trades were placed in the accounts. This adjustment has caused some portfolio’s initial target allocation to be updated from previous reports. These updates did not change any initial target allocations of equity, fixed income, cash, or other by more than 1%.
Prior to Q3 2018, due to technological limitations of our portfolio management system, some accounts which contained fractional shares had misstated the quantity of shares when transactions quantities were smaller than 1/1000th of a share in a position as a result of purchases, sales, or dividend reinvestments. This had a marginal effect on the historical performance of the accounts. The rounding of position quantities caused by this limitation has been resolved, and quantities have been adjusted to reflect the full position to the 1/1,000,000th of a share as of the end of Q3 2018. Therefore, this rounding of fractional shares will not be necessary in the future.
At certain custodians, a combination of the custodian providing us a limited number of digits on fractional share and fractional cent transactions rounding errors are introduced into our tracking. At quarter-end starting 3/31/2020, we implemented a process to enter small transactions to eliminate any rounding errors that have built up to more than a full cent. These transactions are small and do not have an appreciable effect on performance. Sharpe ratios and Standard Deviation calculations are calculated with the assumption of 252 trading days in a year.
This report represents Condor Capital Wealth Management’s research, analysis and opinion only; the period tested was short in duration and may not provide a meaningful analysis; and, there can be no assurance that the performance trend demonstrated by Robos vs indices during the short period will continue. A copy of Condor’s Disclosure Brochure is available at www.condorcapital.com. Condor Capital holds a position in Schwab in one of the strategies used in many of their discretionary accounts. As of 6/30/2025, the total size of the position was 64,161 shares of Schwab common stock. As of 6/30/2025, accounts discretionarily managed by Condor Capital Management held bonds issued by the following companies: Morgan Stanley, Bank of America, Wells Fargo, E*Trade, Citi Group, Citizens Financial Group, Ally Financial, Charles Schwab, Fidelity, and TD Bank.