Clover and Acorns are both fast-growing investment services that use technology to make investing easier.
We might sound similar, but there are significant differences in our services and the way your investments are held. Here's a quick review:
Clover provides professional investment advice and management for people who are serious about growing their savings. Clover builds clients a personalised portfolio based on their unique circumstance, like your age, goals, and risk tolerance. The average Clover balance is around $20,000.
Acorns is aimed at micro-investing, or investing smaller amounts of money. Acorns rounds up transactions, to help users save money in the background. They also offer incentives for shopping at partner stores. The average Acorns account balance is around $250*.*Based on published user data as of 1 January 2017.
Clover is a licensed financial advisor and gives personalised recommendations.
Acorns does not give financial advice.
Your money remains legally yours at all stages with Clover.
Your money is invested in a pooled fund and the assets are held with a custodian.
With Clover, you won’t get stung with hidden fees.
We've even built a calculator so you can see exactly what your Clover fees will be.
Additional costs may include netting spread, transaction costs, additional responsible entity fees, and dishonour fees.
Additionally, Acorns encourages you to shop at store of which they may share in the revenue.
Clover does not require access to your savings account.
We set up a Cash Management Account for you, free of charge, for you to transfer your funds into.
Acorns requires access to your personal savings account.
If Acorns withdraws money and your bank account is below the amount, you will be fined extra.
Both Clover and Acorns use ETFs to construct portfolios, which we believe is the smartest way to invest. However, there are differences in the investment philosophy and how the portfolios are put together.
For example, Clover has a significantly less allocation to Australian shares than Acorns. Very high allocation to one’s own share market is called home bias. High concentration in domestic shares erode the long-term benefits of diversification.
Because you are the owner of your investments, you have the flexibility to change to another advisor without selling your investments, or incurring any additional costs.
Acorns only allows in specie transfer "upon prior agreement with the Responsible Entity." You will responsible for transaction costs and any additional fees.*
*Read more in the PDS
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“I’m saving for a home. My savings account gave me next to nothing, so I moved my money to Clover. I'm really glad I did—the returns have been better than I expected.” Read more
“Clover helps us set and track our monthly savings goal, and automatically manages our investments. We’re thrilled with the results.” Read more
“I’ve been waiting for something like Clover to hit the Australian market for a long time. Love the model and the people behind it. Happily investing with this team.”
“I used to manage my own investments, but switched to Clover to save time (and stress!). It was simple to open an account, and your team was really patient and helpful with my questions. Thank you!” Read more
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