Micro investing is a relatively new concept these days. It is gaining popularity because you don’t need lots of money to start investing. With micro investing you can buy stocks using the fractional ownership model. Acorns and Stash are two of the best platforms for this. We look at Acorns vs Stash and see which is better.


The case for micro investing

Amazon is one of the most popular company in the United States. The company is used by millions of people every day. Its Amazon Prime service that offers free shipping is used by more than 90 million. The company is also loved by investors, who love the performance of its retail and cloud segments. In the past five years, the stock price of Amazon has risen by more than 455%, making Jeff Bezos the richest American.

Unfortunately, it is almost impossible for most Americans to invest in Amazon because its stock price is at $1840. This is where Acorns and Stash come in. These companies allow people to invest in companies like Amazon using the fractional ownership model. In this article, we will look at Acorns vs Stash and conclude with the one we recommend.

Acorns vs Stash: What is Acorns?


Acorns is a startup that was started in 2012 with a simple model. The company wanted to help people invest their change in the financial market. For example, if you go to a department store and buy a product for $16, the company will round-up the change to $20 and then invest the $4. As you make purchases, the company continues to round up this change and invest it in the market. The idea became popular and since then, the company has raised more than $200 million from investors like Comcast Ventures, PayPal, Steelpoint Capital, and The Rise Fund. The company is now used by more than 3.7 million customers and is valued at about $806 million.


Acorns vs Stash: What is Stash?


Stash is a fintech startup that was started in 2015 to help people invest in the financial market. The initial goal was to simplify investing and make it more affordable to most people. Since then, the company has expanded its services to include banking, investment, retirement, and custodial services. On banking, the company offers all banking services like borrowing and saving. On retirement, the company offers Roth IRA and traditional IRA. On Custodial, the company allows you to invest for your kid’s future. The company has raised more than $189 million from Union Square Ventures, Goodwater Capital, Valar ventures, and Breyer Capital. Like Acorns, Stash also offers a spare change investment product known as Round-Ups. Stash has more than $550 million in assets under management (AUM). Stash has a valuation of more than $350 million.

Acorns vs Stash: Pricing

Acorns is one of the most affordable fintech startup in the country. The company’s pricing has been simplified as just 1,2, and 3. Acorns Core charges $1 per month. With this, you get automated investing, smart portfolios, a subscription to Grow magazine, and discounts from top stores. Acorns Core + Acorns Later charges $2 per month. With this, you get all the products in core, IRA, and Assisted rollovers. Finally, the Acorns Core + Acorns Later + Acorns Spend has all the services in the previous packages and a FDIC-insured checking account. The chart below simplifies the pricing of Acorns.


As with Acorns, Stash offers three packages, with pricing that ranges between $1 to $9. The Beginner account charges just $1 per month and offers services like a personal investment account, debit account access, and earn stock-back service. The Growth accounts charges $3 per month and offers all products in Beginner and tax benefits for retirement investing, and free financial education. Stash+ that go for $9 offers all the products in beginner and growth in addition to an investing account for two kids, metal debit card, and monthly market insights. The Stash pricing is simplified in the chart below.


Acorns vs Stash: Investment Products

Acorns offers investment products based on your risk apetite. To help with this, the company has developed four types of investment products. These are:

  • Conservative. This account invests 40% of your money in short-term government bonds, 40% on ultra-short term corporate bonds, and 20% in ultra-short term government bonds.
  • Moderately conservative. This account invests 24% in large company stocks, 4% in small company stocks, 4% in real estate stocks, 30% in government bonds, 30% in corporate bonds, and 8% in international large company stocks.
  • Moderate. This portfolio invests 29% of funds in large company stocks, 10% in small company stocks, 3% in emerging market stocks, 6% in real estate stocks, 20% in government bonds, 20% in corporate bonds, and 12% in international large company stocks.
  • Moderately aggressive. This portfolio invests 38% in large company stocks, 14% in small caps, 4% in emerging market stocks, 8% in real estate stocks, 10% in government stocks, 10% in corporate bonds, and 16% in international large cap stocks.
  • Aggressive. This product invests 40% in large company stocks, 20% in small cap stocks, 10% in emerging market stocks, 10% in real estate stocks, and 20% in international large cap stocks.

With Acorns the continual process of investing money is automatic and mindless. Getting set up with an Acorns account ensures that young people are contributing to their investment account frequently and often, enabling them to reap the benefits of compound interest from a young age. While investing small amounts regularly may seem insignificant, it’s proven to add up over time. Jeff Crutenden

Stash on the other hand offers various investment products:

  • Personal investment. In this, the company gives you a platform where you can invest in companies like Amazon, 3M, and Google.
  • Auto-Stash. This product allows you to automate your trading. It has three products: set schedule, which lets you set a certain period to invest, round-ups, to invest your change, and smart stash that gives you analytics to guide you invest.

Our customers are typically starting with around $20 to $40, and they\’re turning on our feature called Autostash, which helps them invest either weekly or biweekly. Brandon Krieg

Acorns vs Stash: Which is Better?

In this article, we have compared between Stash and Acorns. Frankly, each of these startups are offering quality products that we never thought would exist a few years ago. We believe that the cost advantage of Acorns is better than that of Stash. We also believe that its model of investing in spare change is unique and revolutionary. Stash on the other hand offers more products that are actually better and cost effective. Therefore, we recommend that you use both as a means of diversifying your income.