Smart ways to invest small amounts of money
There’s no minimum investment at Betterment, an online investing startup, or “robo-adviser,” founded in 2010. A unique advantage of Betterment for small investors is its ability to sell fractional shares — down to one-millionth of a share — which makes it easier to spread small portfolios over several different exchange-traded funds.
But the service charges smaller accounts more than larger one. It charges a fee of 0.35% of assets per year for accounts of less than $10,000, if clients set up an automatic deposit of at least $100 into their account. Otherwise, Betterment charges small accounts $3 per month, which doubles the fee for a $500 account. From $10,000 to $100,000, clients pay 0.25%, and over $100,000 they’re charged 0.15%.