Investors using Betterment make money through stock price appreciation as well as dividends.

Betterment makes money from fees. There is a 0.25% per year management fee for the digital-only customers and a 0.40% per year management fee for users with the premium plan. The underlying ETFs have management fees of 0.07% to 0.15% per year.

With investing comes risk including the possible loss of principal and there is no assurance that the investment will provide positive performance over any period of time. The Securities Investor Protection Corporation (SIPC) provides insurance that protects your investments, including those with Betterment. It covers up to $500,000 of missing assets, including a maximum of $250,000 for cash claims.