Betterment Buys Direct Indexing Platform Rowboat Advisors
Betterment on Tuesday announced its acquisition of Rowboat Advisors, a portfolio management software that offers direct indexing, tax optimization, and personalized investing services, in an effort to continue attracting and servicing registered investment advisors (RIAs).
As per the agreement, Rowboat Advisors will integrate to Betterment Advisor Solutions, the company’s custodial platform for RIAs, in late 2025.
Betterment says the new deal echoes its emphasis on expanding capabilities for RIA clients, who can now add single stocks into custom portfolios. It follows other product launches released earlier this year, including one on Solo 401(k) plans and securities-backed lines of credit (SBLOCs).
“This marks a significant step forward in our mission to empower advisors with modern, automated investment tools,” said Sarah Levy, CEO of Betterment, in a statement. “Rowboat brings exceptional talent and cutting-edge technology that will help us unlock new dimensions of tax-aware, customizable investing at scale.”
The firm has also made strides in expanding its robo-advisory side. In February, Betterment announced its acquisition of Ellevest’s robo-advice business. In March 2024, it reached an agreement to acquire Goldman Sach’s digital investing accounts.
Looking later into the year and into 2026, Betterment says it plans to further build upon its ETF and mutual fund side and implement tools that offer better control and transparency for portfolio management. The brand also intends to enhance its automation and tax management strategies by offering rebalancing, tax-loss harvesting, tax-smart portfolio transactions, asset location, and intelligent withdrawals.
“Betterment is the platform for advisor-focused innovation,” said Iraklis Kourtidis, founder and CEO of Rowboat Advisors. “We saw a unique opportunity to join forces with Betterment’s infrastructure, helping more advisors access the powerful tools they need to best serve their clients.”
As part of the acquisition, Kourtidis will join Betterment’s engineering leadership team as vice president of Portfolio Management and will report to Chief Technology Officer John Mileham.
Betterment currently has over $56 billion in assets under management (AUM).
Editor’s Note: A previous version of this article reported that Betterment’s acquisition of Goldman Sach’s digital investing accounts occurred this past March. The deal occurred in March 2024. This article has been updated to reflect that change.
SEE ALSO:
Betterment Acquires Goldman Sachs Digital Offerings
Betterment Buys Ellevest’s Robo-Advice Side
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
