Your advisor's technology partner that never sleeps.
Your advisor uses Betterment to help you make the most of your money.
Betterment takes proven investment strategies that have been around for decades and uses technology to make them more efficient. Your advisor’s and our goals are aligned: to increase your long-term returns.
Build a lasting, personal relationship.
Your advisor can help develop a more personalized and comprehensive financial plan, keep you accountable to your goals, work with you to make rational financial decisions, and anticipate and plan for major life events.
Your advisor uses Betterment to help save you more on taxes.
We’re always thinking about ways to lower your taxes. We automate trading and tax-saving strategies, including asset location and tax loss harvesting.
When you and your advisor choose what type of account to invest in...
We focus on taxes.
Your advisor can help determine which combination of traditional, Roth, and taxable accounts—which are all taxed differently—may be right for you.
When your advisor helps build your portfolio...
We use ETFs.
Exchange-traded funds are generally more tax-efficient and lower-cost than mutual funds, which is why we have all-ETF portfolio options.
We organize assets based on taxes.
High-tax assets belong in IRAs and low-tax assets belong in taxable accounts. Your advisor can help decide if turning on our automated asset location feature is right for your situation.
When you make a deposit or receive dividends...
Rebalancing can help protect your portfolio from market volatility, but doing it by selling securities can cost you in taxes. To help avoid this, we rebalance using deposits and dividends.
When you make a withdrawal or change your allocation...
We work to minimize transaction taxes.
To help lower transaction taxes, we sell your assets in a specific order—the ones with the lowest tax burden go first.
When a fund loses value...
We tax loss harvest.
When investments lose value, you can sell them to help offset the taxes that come with income and capital gains. When enabled, our Tax Loss Harvesting+ feature automates this process to help keep your taxes low.
A tax-coordinated portfolio.
We’re the only technology partner that offers automated asset location to help you increase your after-tax returns.
Invest in low-cost, tax-efficient portfolios.
Betterment’s investment philosophy is backed by decades of research that comes to an important conclusion: Over the long term, a diversified portfolio of low-cost index funds is likely to outperform a high-cost, actively managed portfolio. We have several portfolio options, and your advisor can help choose which is right for you.
Our portfolio includes stock ETFs that efficiently capture the broad U.S. stock market, and international developed and emerging markets. Your money is invested in literally thousands of companies instantly. How much of your portfolio is made up of which stocks depends on the exact allocation you choose. Our stock ETFs include:
Our portfolio includes bond ETFs that allow us to precisely manage the level of risk at every allocation, and improve the risk-adjusted performance of the portfolio at higher risk levels. The exact amounts of each bond ETF will depend on the allocation you choose, and is customized according to your location. Our bond ETFs include:
U.S. Total Stock Market
US Total Stock Market contains broad exposure to the historically strong long-term growth of the U.S. economy.
U.S. Large-Cap Value Stocks
US Large-Cap Value stocks overlap with the U.S. Total Stock Market, but are included to tilt the portfolio toward large size companies with low price-to-earnings ratios.
U.S. Mid-Cap Value Stocks
U.S. Mid-Cap Value stocks overlap with the U.S. Total Stock Market, but are included to tilt the portfolio toward medium size companies with low price-to-earnings ratios.
U.S. Small-Cap Value Stocks
U.S. Small-Cap Value stocks overlap with the US Total Stock Market, but are included to tilt the portfolio toward small size companies with low price-to-earnings ratios.
International Developed Stocks
Developed Markets stocks provide exposure to a diverse set of companies from international developed economies including the UK, Europe, Japan, and others.
Emerging Market Stocks
Emerging Markets provide higher return potential and diversification, but they come with higher risk compared to U.S. 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.
Inflation Protected Bonds
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.
U.S. High Quality or Municipal Bonds
For fixed income with slightly higher risk and returns than U.S. Treasuries, taxable accounts use Municipals and IRA and 401(k) accounts use U.S. High Quality bonds.
U.S. Corporate 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
Emerging Markets Bonds are dollar-denominated bonds issued by governments with economies that are rapidly growing and industrializing.
Monitor your financial accounts in one place.
Get a clear view of your net worth by syncing your outside accounts, such as bank accounts and other investments.
A better way to give
Whether you’re investing for the future or giving to causes close to your heart, your advisor uses Betterment to help you put your money to good work. When you donate appreciated shares through the platform, your selected charity keeps 100% of your donations, and you save on taxes.
Your security is our priority.
We use the strongest browser encryption available, store all of our data on servers in a secure facility, and implement systematic processes and procedures for securing and storing data.
Member of Securities Investor Protection Corporation
Betterment Securities is a member of SIPC. Securities in your account protected up to $500,000. For details, please see www.sipc.org.
Looking out for investors' accounts is a legal duty.
Regulated by the SEC and a member of FINRA, our Broker-Dealer, Betterment Securities, follows a strict set of rules, designed to protect our investors' accounts.