Acorns

CRD#165926
Investment Advisor Firm

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Overview

Acorns is an advisory company headquartered in Irvine, California. The company oversees $1.8 billion in assets under management throughout 3.0 million accounts, placing it among the biggest firms in the country by assets under management (AUM). The firm has a small group of 17 employees, all of whom are financial advisors. Acorns does not act as a registered broker-dealer, signifying that the company cannot buy and sell securities for its customers' and own accounts and instead is required to go through a broker-dealer firm to do so. Securities are tradable fiscal assets like options, bonds and stocks.

Acorns manages all of the company's accounts on a discretionary basis. Discretionary management signifies that an investment advisor makes buy and sell decisions without requiring the client's consent. The advisory firm's typical account size is $617. The typical advisor at Acorns oversees about 173,805 client accounts.

Acorns's central office is at 5300 California Avenue, Irvine, California 92617. It is legally allowed to serve investors across 51 U.S. states and territories.

Assets Under Management

$1.8 billion

Number of Advisors

17

Disclosures

No

Office Location

5300 California Avenue
Irvine, CA 92617

Acorns by the Numbers

Total Assets Under Management

$1.8 billion

National Average: $3.7 billion
Total Number of Employees

17

National Average: 29
Total Number of Accounts

2,954,678

National Average: 2,073
Average Account Size

$616.6

National Average: $1.8 million

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Fee Structure

Financial advisory fees typically depend on which service is provided. However, fee types charged by the firm typically consist of the following fee types: fixed. Acorns participates in a wrap fee program, in which the firm offers a service bundle for a single fee.

Available

  • Offered by 40% of firms

    Fixed

    Show Explanation

    Fixed fees are a one-time, lump sum charged for a specific service, like the creation of a financial plan without subsequent implementation. This can be useful if you only need advice for one specific purpose, rather than a long-term advisor. Fixed fees usually range from $1,000 to $3,000.

Unavailable

  • Find one of the 74% of firms that offer this fee type

    Percentage of Assets

    Show Explanation

    This fee, which is the most common fee type charged by advisors for portfolio management, is based on the amount of assets you have under management. Also referred to as an asset-based fee, this fee typically ranges from 0.50%-2.00% of AUM annually. You'll typically pay a lower rate the more assets you have under management.

  • Find one of the 35% of firms that offer this fee type

    Hourly

    Show Explanation

    Like a lawyer, a financial advisor may charge you by the hour. This can be helpful if you are only looking for short-term or one-time advice. Rates typically range from $100-$300 per hour, depending on the complexity and level of services needed.

  • Find one of the 2% of firms that offer this fee type

    Commissions

    Show Explanation

    Occasionally, advisors earn commissions from selling financial products, such as securities or insurance policies, or making certain referrals or transactions. Advisors who earn commissions may be incentivized to make certain recommendations to clients in order to make a commission. Fee-only advisors do not earn commissions, while fee-based advisors may.

  • Find one of the 17% of firms that offer this fee type

    Performance-based

    Show Explanation

    Advisors only earn performance-based fees if a portfolio outperforms a defined benchmark. This fee may be calculated in a number of ways but most commonly is charged as a percentage of investment profits. Performance-based fees may incentivize advisors to make riskier decisions in order to generate higher returns.

  • Find one of the 1% of firms that offer this fee type

    Subscription

    Show Explanation

    Firms generally charge this fee for educational materials provided, such as a monthly magazine. This can be useful if you want to learn about investing or financial management on your own.

  • Find one of the 12% of firms that offer this fee type

    Other

    Show Explanation

    Firms can sometimes charge customers using non-traditional fee structures. See this firm's Form ADV for more details.

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Types of Clients

The firm caters to retail investors and high net worth investors. Out of its 2,954,678 clients, Acorns's largest client type is retail investors, though it also serves one high-net-worth individuals. A high-net-worth individual is defined by the SEC as an investor who has at least $750,000 in AUM or a net worth of at least $1.50 million or who is deemed a "qualified purchaser" (a standard met by having at least $5 million in investments). None of the firm's accounts reside abroad.

  • High-Net-Worth Individuals* - 0%
  • Other Individuals - 100%
  • Corporations - 0%
  • Charitable Organizations - 0%

* The U.S. Securities and Exchange Commission (SEC) defines a high-net-worth individual as someone who has at least $750,000 under management.

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Disclosures

Acorns does not have any disclosures.

Please visit its Form ADV for more details.

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This content was compiled from the SEC and FINRA