Our portfolio offerings and tax-efficient investment management technology are automated and flexible, enabling you to provide clients with personalized investment strategies.
Each of the strategies is designed to serve your clients' unique investing needs, while leveraging Betterment for Advisors' market-leading portfolio management technology and award-winning user experience.
A set of globally diversified stock and bond allocations with a U.S. value and small-cap tilt, comprised of low-cost, liquid, index-tracking ETFs from diverse providers. A 100% bond allocation is entirely U.S. ultra-short term treasuries, allowing for extremely low risk.
GSAM's ETF asset allocation portfolios provide exposure to core stocks and bonds as well as diversifiers, such as emerging markets and REITS, using low-cost, liquid ETFs. These portfolios use an established, factor-based approach designed to balance risk across multiple sources of return.
Vanguard's ETF strategic model portfolios are derived from global market cap weights. They include exposure to U.S. and international equities and global investment-grade bonds, encompassing more than 19,000 global stocks and bonds, using low cost index-tracking exchange-traded index funds.
The Betterment portfolio includes stock ETFs that efficiently capture the broad U.S. stock market with a value and small cap tilt, and international developed and emerging markets. We include bond ETFs that allow us to precisely manage the level of risk at every allocation. Each ETF has been selected to balance considerations of low cost and high liquidity as a means to access 12 different asset classes. When making the selection for each ETF, we primarily consider expense ratio, bid-ask spread, assets under management, number of holdings, currency hedging, and capital gains implications. Learn More
US Total Stock Market contains broad exposure to the historically strong long-term growth of the US economy.
US Large-Cap Value stocks overlap with the US Total Stock Market, but are included to tilt the portfolio toward large size companies with low price-to-earnings ratios.
US Mid-Cap Value stocks overlap with the US Total Stock Market, but are included to tilt the portfolio towards medium size companies with low price-to-earnings ratios.
US Small-Cap Value stocks overlap with the US Total Stock Market, but are included to tilt the portfolio towards small size companies with low price-to-earnings ratios.
Developed Markets stocks provide exposure to a diverse set of companies from international developed economies including the UK, Europe, Japan, and others.
Emerging Markets provide higher return potential and diversification, however it comes with higher risk compared to US or International Developed stocks.
This extremely low-risk asset class is a cash alternative that generates nominal benefit through interest payments, and de-risks the portfolio at safer allocations.
This allocation serves to insulate a part of the portfolio from the depreciating effects of inflation while also having historically low correlation with other asset classes.
For fixed income with slightly higher risk and returns than US Treasuries, taxable accounts use Municipals and IRA and 401(k) accounts use US High Quality bonds.
Corporate bonds generally offer attractive yields and opportunity for capital appreciation to compensate investors for default risk.
International Bonds have high credit quality and provide interest rate diversification for a bond portfolio, resulting in higher risk-adjusted returns.
Emerging Markets Bonds are dollar-denominated bonds issued by governments with economies that are rapidly growing and industrializing.
Leveraging GSAM’s markets insights, our portfolios incorporate a wide spectrum of opportunities including core asset classes, emerging markets, international small-cap, REITS, high-yield and municipal bonds. We use our GSAM ActiveBeta® ETFs, where available, and third-party ETFs to access these exposures, giving thoughtful consideration to liquidity, tracking error, and cost. The result is a diversified portfolio designed to maximize risk adjusted returns. Already a Betterment for Advisors partner? See portfolio details
US large cap stocks provide broad exposure to the historically strong long-term growth of the US economy.
Developed markets stocks provide exposure to a diverse set of companies from international developed economies including the UK, Europe, Japan, and others.
Emerging markets stocks provide higher return potential and diversification through exposure to emerging countries that are rapidly growing and industrializing, however it comes with higher risk compared to US or International Developed stocks.
US small cap stocks provide exposure to smaller US companies, which are an important source of innovation and growth and may outperform larger companies over time. However, they have higher risk compared to large cap stocks and may be more sensitive to economic conditions.
International small cap stocks provide exposure to smaller companies in international developed economies including the UK, Europe, Japan and others, offering geographic diversity and higher potential returns but also have higher risk than large cap stocks.
Real Estate Investment Trusts or REITs are publicly-listed entities which own and/or operate commercial, corporate, and residential real estate properties. REITs may provide exposure similar to equities with potentially significant yields, especially in times of economic expansion. However, REITs can be risky and may underperform in a contracting economy.
Short-term US Treasuries, which have maturities between one month and one year, are low-risk and generate modest interest payments. This asset class helps mitigate risk in a portfolio and usually performs well in times of market stress.
US aggregate bond provides broad exposure US government and corporate bonds with investment grade credit ratings (BBB or higher). This asset class is typically used to mitigate risk and may do well during times of market distress or when yields are declining.
International bonds, which provide broad exposure to non-US dollar denominated investment-grade bonds, have high credit quality and provide interest rate diversification for a bond portfolio, resulting in higher risk-adjusted returns potential.
US investment grade corporate bonds, loans to investment grade US companies (BBB or higher), generally offer more attractive yields and the opportunity for capital appreciation to compensate investors for default risk.
High yield corporate bonds, loans to US companies with credit ratings of BB/Ba or lower, are riskier than investment grade corporate bonds but may provide more attractive yields and capital appreciation opportunities.
Municipal bonds, federal-tax exempt bonds issued by state, city and local governments to finance capital expenditures, are relatively low risk and provide more favorable after-tax income in taxable portfolios.
Inflation protected bonds are issued by the US treasury with the value of the principal (but not interest payments) indexed to inflation. This allocation serves to insulate a part of the portfolio from the depreciating effects of inflation while also having historically low correlation with other asset classes.
Investing in longer maturity US government bonds may allow investors access to higher yields and income potential. This allocation may benefit the portfolio when other higher risk assets may underperform.
Investing in longer maturity bonds, in this case investment grade US corporate bonds with an average maturity of 10 or more years, may allow investors access to higher yields and income potential.
Emerging markets bonds are dollar-denominated bonds issued by governments with economies that are rapidly growing and industrializing. This asset class typically offers higher yields to compensate investors for additional interest rate and credit risk and may offer attractive risk-adjusted returns.
Local emerging market bonds, which are denominated in an issuing emerging country’s local currency, may offer higher yields but carry currency risk relative to the US dollar in addition interest rate and credit risk. In a well-balanced portfolio, this asset class may enhance diversification and risk-adjusted returns.
Exchange-Traded Funds are subject to risks similar to those of stocks. Investment returns may fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed, or sold, may be worth more or less than their original cost. ETFs may yield investment results that, before expenses, generally correspond to the price and yield of a particular index. There is no assurance that the price and yield performance of the index can be fully matched. Equity securities are more volatile than bonds and subject to greater risks. Small and mid-sized company stocks involve greater risks than those customarily associated with larger companies. Investments in fixed income securities are subject to the risks associated with debt securities generally, including credit, liquidity, interest rate, call and extension risk. Investments in foreign securities entail special risks such as currency, political, economic, and market risks. These risks are heightened in emerging markets. High-yield, lower-rated securities involve greater price volatility and present greater credit risks than higher-rated fixed income securities. Income from municipal securities is generally free from federal taxes and state taxes for residents of the issuing state. While the interest income is tax-free, capital gains, if any, will be subject to taxes. Income for some investors may be subject to the federal Alternative Minimum Tax (AMT). Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real estate industry in general. REITs whose underlying properties are concentrated in a particular industry or geographic region are also subject to risks affecting such industries and regions. The securities of REITs involve greater risks than those associated with larger, more established companies and may be subject to more abrupt or erratic price movements because of interest rate changes, economic conditions and other factors. Although Treasuries are considered free from credit risk, they are subject to interest rate risk, which may cause the underlying value of the security to fluctuate.
Vanguard ETF Strategic Model Portfolios are offered in a range of stock / bond allocations. The balanced model portfolios provide exposure to U.S. and international stocks (in fixed, 60% U.S. / 40% international mixes), and global investment-grade bonds (in fixed, 70% U.S. / 30% international mixes). To ensure broad diversification within each asset class, all of the ETFs underlying our model portfolios track broad-market or market segment indexes. Each index is capitalization-weighted, meaning that its components reflect the makeup of the market or market segment it tracks. Already a Betterment for Advisors partner? See portfolio details
Seeks to track the performance of a benchmark index that measures the investment return of large-capitalization growth stocks.
Seeks to track the performance of a benchmark index that measures the investment return of large-capitalization value stocks.
Seeks to track the performance of a benchmark index that measures the investment return of small-capitalization stocks.
Seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in Canada and the major markets of Europe and the Pacific region.
Seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in emerging market countries.
Seeks to track the performance of a market-weighted bond index with a short-term dollar-weighted average maturity.
Seeks to track the performance of a market-weighted bond index with an intermediate-term dollar-weighted average maturity.
Seeks to track the performance of a market-weighted bond index with a long-term dollar-weighted average maturity.
Seeks to track the performance of a market-weighted U.S mortgage-backed securities index with an intermediate-term dollar-weighted average maturity.
Seeks to track the performance of a benchmark index that measures the investment return of investment-grade bonds issued outside of the United States.
Important Disclaimer: Betterment is offering a range of model portfolios as a service to provide advisors with greater flexibility in serving their clients. The availability of a model portfolio offered by an independent third party on the Betterment for Advisors platform should not be construed as, and is not, a recommendation as to the advisability of utilizing such model portfolio strategy. In addition, advisors should conduct their own due diligence on the underlying exchange-traded funds for any particular model portfolio. No third-party provider of a model portfolio strategy is providing investment advice to any advisor or client.