Acorns, a popular micro-investing app, aims to make investing accessible to everyone, especially those who may not have large sums of money to invest. One of the key factors that people consider when deciding whether to invest with Acorns is the potential return on their investment.
It’s important to note that the average return on investment can vary depending on a variety of factors, including market conditions and the specific investment strategy employed by Acorns. However, based on historical data and performance, we can provide some insights into the average return that investors can expect.
Acorns primarily invests its users’ money in a diversified portfolio of exchange-traded funds (ETFs). These ETFs consist of a mix of stocks, bonds, and other assets, which helps to spread the risk and potentially increase the chances of generating returns.
Over the long-term, Acorns estimates that investors can expect an average annualized return of around 7.5%. This figure takes into account the historical performance of the ETFs that Acorns invests in, as well as the potential for future growth.
It’s worth noting that this average return is not guaranteed and can fluctuate from year to year. The performance of the stock market and the economy as a whole can have a significant impact on investment returns. Therefore, it’s important for investors to have a long-term perspective and not be overly concerned with short-term fluctuations.
Additionally, it’s important to consider the fees associated with investing through Acorns. While Acorns has a low fee structure, with fees starting at $1 per month, it’s crucial to understand that these fees can eat into investment gains, especially for smaller account balances.
For example, if an account balance is less than $200, the fees can potentially erode all the gains made by the investment. This highlights the importance of considering the cost of investing and the potential impact it can have on returns, especially for smaller account balances.
The average return on investment with Acorns is estimated to be around 7.5% annually. However, it’s important to remember that investment returns are not guaranteed and can vary based on market conditions. Additionally, investors should be mindful of the fees associated with investing, particularly for smaller account balances.