Betterment Robo Advisor 90 Portfolio: ETF allocation and returns (2024)

Period: January 1985 - August 2024 (~40 years)
Consolidated Returns as of 31 August 2024
Live Update: Sep 13 2024
Rebalancing: at every Jan 1^st
Currency: USD

(Change Settings)

1.00$

Initial Capital
September 1994

10.95$

Final Capital
August 2024

8.31%

Yearly Return

14.43

Std Deviation

-50.07%

Max Drawdown

62 months

Recovery Period

1.00$

Initial Capital
January 1985

53.43$

Final Capital
August 2024

10.55%

Yearly Return

14.46

Std Deviation

-50.07%

Max Drawdown

62 months

Recovery Period

Live update: September 2024 (USD)

0.66%

1 day - Sep 13 2024

-0.69%

Month - September 2024

The Betterment Robo Advisor 90 Portfolio can be implemented with 11 ETFs. This portfolio has a very high risk, meaning it can experience significant fluctuations in value. It is suitable for investors with a high risk tolerance who are seeking substantial returns and can withstand large drawdowns.

The asset allocation is the following: 90.1% on the Stock Market, 9.9% on Fixed Income, 0% on Commodities. In general, bonds are useful for mitigating overall portfolio risk, especially if they are issued by national entities or highly reliable companies. This portfolio has a 9.9% allocation to bonds, leading to its classification as very high risk.

As of August 2024, in the previous 30 Years, the Betterment Robo Advisor 90 Portfolio obtained a 8.31% compound annual return, with a 14.43% standard deviation. It suffered a maximum drawdown of -50.07% that required 62 months to be recovered.

Disclaimer: The simulations on this website are provided in good faith but should NOT be taken as investment advice. We are not liable for any errors or actions based on this information. The authors of the website are not affiliated with the portfolio creators, who are the sole owners of their intellectual property. The translation of asset allocations into ETFs is based on the interpretation of LazyPortfolioETF.com and may not exactly reflect the original intent of the portfolio creators. Content is for informational, educational, illustrative, and entertainment purposes only.

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Asset Allocation and ETFs

The Betterment Robo Advisor 90 Portfolio has the following asset allocation:

90.1% Stocks

9.9% Fixed Income

0% Commodities

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The Betterment Robo Advisor 90 Portfolio can be implemented with the following ETFs:

Weight (%)	ETF Ticker	ETF Currency	ETF Name	Investment Themes (Orig.Currency)
30.90	VTI	USD	Vanguard Total Stock Market	Equity, U.S., Large Cap (USD)
24.60	VEA	USD	Vanguard FTSE Developed Markets	Equity, EAFE, Large Cap (USD)
14.00	EEM	USD	iShares MSCI Emerging Markets	Equity, Emerging Markets, Large Cap (USD)
8.20	VTV	USD	Vanguard Value	Equity, U.S., Large Cap, Value (USD)
6.70	VOE	USD	Vanguard Mid-Cap Value	Equity, U.S., Mid Cap (USD)
5.70	IJS	USD		Equity, U.S., Small Cap, Value (USD)
3.50	BND	USD	Vanguard Total Bond Market	Bond, U.S., All-Term (USD)
2.90	BNDX	USD	Vanguard Total International Bond	Bond, Developed Markets Ex-US, All-Term (USD)
1.70	EMB	USD	iShares JP Morgan USD Em Mkts Bd	Bond, Emerging Markets, All-Term (USD)
1.20	TIP	USD	iShares TIPS Bond	Bond, U.S., All-Term (USD)
0.60	BIL	USD	SPDR Blmbg Barclays 1-3 Mth T-Bill	Bond, U.S., Ultra Short-Term (USD)

Most of Lazy Portfolios are made of common components (asset classes), very simple and well defined. For a more complete view, find out the most common ETFs you can use to build your portfolio.

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Portfolio and ETF Returns as of Aug 31, 2024

The Betterment Robo Advisor 90 Portfolio guaranteed the following returns.

Returns are calculated in USD, assuming:

	Chg (%)		Return (%)	Return (%) as of Aug 31, 2024
Betterment Robo Advisor 90 Portfolio	0.66		-0.69	12.54	2.00	9.74	19.56	9.92	7.68	8.31	10.55
US Inflation Adjusted return				10.61	1.81	8.67	16.54	5.52	4.71	5.65	7.55
*Components*
VTI	USD	Vanguard Total Stock Market	0.70	Sep 13 2024	-0.42	18.18	2.13	10.99	26.19	15.12	12.32	10.53	11.39
VEA	USD	Vanguard FTSE Developed Markets	0.27	Sep 13 2024	-1.51	11.03	2.91	9.26	18.58	8.71	5.37	5.08	8.09
EEM	USD	iShares MSCI Emerging Markets	0.47	Sep 13 2024	-1.25	8.60	0.98	9.20	13.60	3.87	1.82	4.55	8.79
VTV	USD	Vanguard Value	0.72	Sep 13 2024	-0.82	17.08	2.88	12.33	23.61	12.66	10.46	9.68	11.08
VOE	USD	Vanguard Mid-Cap Value	1.02	Sep 13 2024	-0.17	14.58	3.03	11.86	21.99	11.17	8.90	10.80	12.01
IJS	USD		2.73	Sep 13 2024	-1.44	4.93	-1.38	8.41	13.83	10.21	8.13	10.46	11.86
BND	USD	Vanguard Total Bond Market	0.21	Sep 13 2024	1.76	3.24	1.45	4.83	7.33	-0.09	1.60	4.40	5.75
BNDX	USD	Vanguard Total International Bond	0.18	Sep 13 2024	1.25	2.12	0.51	3.28	6.96	-0.52	2.01	5.10	6.58
EMB	USD	iShares JP Morgan USD Em Mkts Bd	0.45	Sep 13 2024	1.44	6.51	2.27	6.98	13.01	-0.03	2.38	9.29	9.48
TIP	USD	iShares TIPS Bond	0.34	Sep 13 2024	1.47	3.30	0.80	4.05	5.90	1.56	1.80	5.27	6.71
BIL	USD	SPDR Blmbg Barclays 1-3 Mth T-Bill	0.05	Sep 13 2024	0.21	3.54	0.46	2.64	5.33	2.13	1.45	2.29	3.14
Returns over 1 year are annualized
(*) Eastern Time (ET - America/New York)
US Inflation is updated to Aug 2024. Inflation (annualized) is 1Y: 2.59% , 5Y: 4.17% , 10Y: 2.84% , 30Y: 2.52%

Capital Growth as of Aug 31, 2024

An investment of 1$, from September 1994 to August 2024, would be worth 10.95$, with a total return of 995.26% (8.31% annualized).

The Inflation Adjusted Capital would be 5.20$, with a net total return of 419.52% (5.65% annualized).

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An investment of 1$, from January 1985 to August 2024, would be worth 53.43$, with a total return of 5242.60% (10.55% annualized).

The Inflation Adjusted Capital would be 17.94$, with a net total return of 1694.35% (7.55% annualized).

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Mastering ETF Investing: How to Build Wealth with Lazy Portfolios and Passive ...

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Portfolio Metrics as of Aug 31, 2024

Metrics of Betterment Robo Advisor 90 Portfolio, updated as of 31 August 2024, provide a comprehensive overview of the portfolio's performance and risk characteristics.

These metrics include detailed data on returns, volatility, drawdowns and other key performance indicators. By examining them, you can gain insights into how the portfolio has performed over various time periods and understand its risk profile.

Metrics are calculated based on monthly returns, assuming:

no fees or capital gain taxes.
rebalancing: at every January 1^st. How do returns change with different rebalancing strategies?
dividend reinvestment, when applicable.
the actual US Inflation rates.

BETTERMENT ROBO ADVISOR 90 PORTFOLIO

Advanced Metrics

Time Period: 1 January 1985 - 31 August 2024 (~40 years)

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	Metrics as of Aug 31, 2024
	YTD (8M)	1M	3M	6M	1Y	3Y	5Y	10Y	20Y	30Y	MAX (~40Y)
Investment Return (%)	12.54	2.00	5.91	9.74	19.56	4.06	9.92	7.68	8.44	8.31	10.55
Growth of 1$	1.13	1.02	1.06	1.10	1.20	1.13	1.60	2.10	5.05	10.95	53.43
Infl. Adjusted Return (%)	10.61	1.81	5.60	8.67	16.54	-0.72	5.52	4.71	5.72	5.65	7.55
US Inflation (%)	1.74	0.19	0.29	0.99	2.59	4.81	4.17	2.84	2.57	2.52	2.79
Returns / Inflation rates over 1 year are annualized.
DRAWDOWN Inflation Adjusted: Inflation Adjusted:				Current	1Y	3Y	5Y	10Y	20Y	30Y	MAX
Deepest Drawdown Depth (%)				0.00	-6.92	-23.36	-23.36	-23.36	-50.07	-50.07	-50.07
Start to Recovery (# months)					3	26	26	26	62	62	62
Start (yyyy mm)					2023 09	2022 01	2022 01	2022 01	2007 11	2007 11	2007 11
Start to Bottom (# months)					2	9	9	9	16	16	16
Bottom (yyyy mm)					2023 10	2022 09	2022 09	2022 09	2009 02	2009 02	2009 02
Bottom to End (# months)					1	17	17	17	46	46	46
End (yyyy mm)					2023 11	2024 02	2024 02	2024 02	2012 12	2012 12	2012 12
Longest Drawdown Depth (%)					same	same	same	same	same	same	same
Start to Recovery (# months)					same	same	same	same	same	same	same
Start (yyyy mm)					2023 09	2022 01	2022 01	2022 01	2007 11	2007 11	2007 11
Start to Bottom (# months)					2	9	9	9	16	16	16
Bottom (yyyy mm)					2023 10	2022 09	2022 09	2022 09	2009 02	2009 02	2009 02
Bottom to End (# months)					1	17	17	17	46	46	46
End (yyyy mm)					2023 11	2024 02	2024 02	2024 02	2012 12	2012 12	2012 12
Longest negative period (# months)					2	29	33	35	62	111	111
Start (yyyy mm)					2023 09	2021 09	2020 01	2017 05	2007 06	1999 12	1999 12
End (yyyy mm)					2023 10	2024 01	2022 09	2020 03	2012 07	2009 02	2009 02
Annualized Return (%)					-34.96	-0.34	-0.01	-0.34	-0.10	-0.13	-0.13
Deepest Drawdown Depth (%)				-2.14	-7.33	-28.50	-28.50	-28.50	-50.90	-50.90	-50.90
Start to Recovery (# months)				36*	3	36*	36*	36*	66	66	66
Start (yyyy mm)					2023 09	2021 09	2021 09	2021 09	2007 11	2007 11	2007 11
Start to Bottom (# months)					2	13	13	13	16	16	16
Bottom (yyyy mm)					2023 10	2022 09	2022 09	2022 09	2009 02	2009 02	2009 02
Bottom to End (# months)					1	23	23	23	50	50	50
End (yyyy mm)					2023 11	-	-	-	2013 04	2013 04	2013 04
Longest Drawdown Depth (%)					same	same	same	same	same	same	same
Start to Recovery (# months)					same	same	same	same	same	same	same
Start (yyyy mm)					2023 09	2021 09	2021 09	2021 09	2007 11	2007 11	2007 11
Start to Bottom (# months)					2	13	13	13	16	16	16
Bottom (yyyy mm)					2023 10	2022 09	2022 09	2022 09	2009 02	2009 02	2009 02
Bottom to End (# months)					1	23	23	23	50	50	50
End (yyyy mm)					2023 11	-	-	-	2013 04	2013 04	2013 04
Longest negative period (# months)					2	36*	48	69	73	140	140
Start (yyyy mm)					2023 09	2021 09	2019 11	2018 02	2006 05	1997 07	1997 07
End (yyyy mm)					2023 10	2024 08	2023 10	2023 10	2012 05	2009 02	2009 02
Annualized Return (%)					-36.65	-0.72	-0.07	-0.35	-0.23	-0.13	-0.13
Drawdowns / Negative periods marked with * are in progress
RISK INDICATORS					1Y	3Y	5Y	10Y	20Y	30Y	MAX
Standard Deviation (%)					12.57	15.61	16.33	13.87	14.75	14.43	14.46
Sharpe Ratio					1.13	0.05	0.48	0.45	0.47	0.42	0.51
Sortino Ratio					1.55	0.07	0.63	0.60	0.62	0.54	0.67
Ulcer Index					2.43	9.52	8.49	6.83	11.55	11.39	10.33
Ratio: Return / Standard Deviation					1.56	0.26	0.61	0.55	0.57	0.58	0.73
Ratio: Return / Deepest Drawdown					2.83	0.17	0.42	0.33	0.17	0.17	0.21
Positive Months (%)					66.66	55.55	63.33	63.33	63.33	62.22	64.28
Positive Months					8	20	38	76	152	224	306
Negative Months					4	16	22	44	88	136	170
LONG TERM RETURNS Inflation Adjusted: Inflation Adjusted:					1Y	3Y	5Y	10Y	20Y	30Y	MAX
Best 10 Years Return (%) - Annualized								7.68	13.18	13.18	16.52
Worst 10 Years Return (%) - Annualized								7.68	4.80	1.70	1.70
Best 10 Years Return (%) - Annualized								4.71	11.22	11.22	12.71
Worst 10 Years Return (%) - Annualized								4.71	2.98	-0.86	-0.86
TIMEFRAMES Inflation Adjusted: Inflation Adjusted:		1M	3M	6M	1Y	3Y	5Y	10Y	20Y	30Y	MAX
··· As of Aug 2024 - Over the previous 30Y
Best Rolling Return (%) - Annualized					58.27	26.29	20.84	13.18	9.24	8.31
Worst Rolling Return (%) - Annualized					-42.94	-12.87	-2.57	1.70	5.16	8.31
Positive Periods (%)					74.2	86.4	96.6	100.0	100.0	100.0
Best Rolling Return (%) - Annualized					54.93	22.87	17.80	11.22	6.81	5.65
Worst Rolling Return (%) - Annualized					-42.95	-14.72	-5.07	-0.86	3.02	5.65
Positive Periods (%)					69.9	79.6	88.0	98.7	100.0	100.0
95% VaR - Value at Risk (%) - Cumulative		6.10	9.60	12.25	15.69	17.15	0.00	0.00	0.00
95% CVaR - Conditional Value at Risk (%)		7.82	12.60	16.49	28.14	28.29	3.36	0.00	0.00
99% VaR - Value at Risk (%) - Cumulative		8.93	14.52	19.20	38.18	36.95	6.86	0.00	0.00
99% CVaR - Conditional Value at Risk (%)		10.74	17.65	23.63	41.17	40.91	12.48	0.00	0.00
Short term VaRs: analytical \| 1+ year VaRs: historical data
Safe Withdrawal Rate (%)					71.97	24.40	15.58	9.24	5.98	7.02
Perpetual Withdrawal Rate (%)					---	---	---	---	2.69	5.67
% based on initial capital, inflation-adj. monthly withdrawals afterwards \| Credits: BestRetirementPortfolio.com
··· All available data (Jan 1985 - Aug 2024)
Best Rolling Return (%) - Annualized					58.27	26.29	23.28	16.52	13.32	11.33
Worst Rolling Return (%) - Annualized					-42.94	-12.87	-2.57	1.70	5.16	7.64
Positive Periods (%)					76.7	90.0	97.6	100.0	100.0	100.0
Best Rolling Return (%) - Annualized					54.93	22.87	18.92	12.71	9.99	8.38
Worst Rolling Return (%) - Annualized					-42.95	-14.72	-5.07	-0.86	3.02	4.99
Positive Periods (%)					72.6	84.5	91.3	99.1	100.0	100.0
95% VaR - Value at Risk (%) - Cumulative		5.94	9.11	11.25	14.64	14.97	0.00	0.00	0.00
95% CVaR - Conditional Value at Risk (%)		7.67	12.11	15.49	24.64	24.80	1.23	0.00	0.00
99% VaR - Value at Risk (%) - Cumulative		8.78	14.03	18.22	37.45	33.56	6.49	0.00	0.00
99% CVaR - Conditional Value at Risk (%)		10.59	17.17	22.65	39.63	39.58	10.58	0.00	0.00
Short term VaRs: analytical \| 1+ year VaRs: historical data
Safe Withdrawal Rate (%)					71.97	24.40	15.58	9.24	5.98	6.63
Perpetual Withdrawal Rate (%)					---	---	---	---	2.69	5.16
% based on initial capital, inflation-adj. monthly withdrawals afterwards \| Credits: BestRetirementPortfolio.com

Terms and Definitions

Annualized Portfolio Return: it's the annualized geometric mean return of the portfolio.
Deepest/Longest Drawdown: a drawdown refers to the decline in value from a relative peak value to a relative trough. The deepest (or maximum) drawdown is the maximum observed loss from a peak to a trough of a portfolio before a new peak is attained. The longest drawdown is the period observed from a peak to the subsequent peak with the greatest duration.
Longest negative period: it's the maximum period for which an overall negative return has been observed.
Standard Deviation: it's a measure of the dispersion of returns around the mean.
Sharpe Ratio: it's a measure of risk-adjusted performance of the portfolio. It's calculated by dividing the excess return of the portfolio over the risk-free rate by the portfolio standard deviation. The risk-free rate here considered is the 1-3 Mth T-Bill return.
Sortino Ratio: another measure of risk-adjusted performance of the portfolio. It's a modification of the Sharpe Ratio (same formula but the denominator is the portfolio downside standard deviation).
Ulcer Index: it's a measure of downside risk that quantifies the depth and duration of drawdowns in an investment portfolio.
Best/Worst 10Y returns: the best and the worst 10-year return over a time frame.
Rolling Returns: N-year returns over a time frame, calculated over all the available data source (best, worst, % of positive returns). Each rolling period, longer than the longest negative period, yielded a non-negative minimum return.
Value at Risk (VaR): it's an evaluation of a cumulative worst-case loss (in absolute value), associated with a probability (95%-99%) and a time horizon. For short term, it's calculated based on the expected return and standard deviation, assuming a normal distribution of monthly returns. For long term is retrieved by the historical rolling return data.
Conditional Value at Risk (CVaR): it represents the average expected loss if that worst-case threshold (95%-99%) is ever crossed.
Safe Withdrawal Rate (SWR): it's the percentage of the initial portfolio balance that can be withdrawn at the beginning of each month with inflation adjustment, without the portfolio running out of money in any case (money amount withdrawal).
For instance: Your initial invested capital is 100.000$; withdrawal rate (annualized) is 4%. This means that, in the first month, you will withdraw 100.000 * 4% * 1/12 = 333.33$. The second month, you’ll withdraw 333.33$ plus the inflation monthly rate. You’ll continue adjusting your withdraw monthly for inflation.
Perpetual Withdrawal Rate (PWR): it's the percentage of the initial portfolio balance that can be withdrawn at the beginning of each month with inflation adjustment, preserving the original invested capital, adjusted for inflation too.

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Portfolio Components Correlation

Correlation measures to what degree the returns of two assets move in relation to each other. It is a statistical measure that describes the extent to which the returns of one asset are related to the returns of another asset.

COMPONENTS MONTHLY CORRELATIONS

Monthly correlations as of 31 August 2024

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Terms and Definitions

Correlation values range between -1 and +1

A correlation of +1 indicates that the returns of the two assets move in perfect synchrony; when one asset's returns go up, the other asset's returns also go up by the same percentage, and vice versa. This perfect positive correlation implies that the assets perform similarly in different market conditions.
A correlation of -1 indicates a perfect inverse relationship between the returns of the two assets. When one asset's returns go up, the other asset's returns go down by the same percentage. This perfect negative correlation suggests that the assets move in opposite directions, providing a diversification benefit by reducing overall portfolio risk.
A correlation of 0 means that there is no linear relationship between the returns of the two assets. The returns of one asset do not predict the returns of the other.

Learn about historical correlations here: see how the main asset classes relate to each other.

Drawdowns

A drawdown refers to the decline in value from a relative peak value to a relative trough. A maximum drawdown is the maximum observed loss from a peak to a trough of a portfolio before a new peak is attained.

BETTERMENT ROBO ADVISOR 90 PORTFOLIO

Drawdown periods

Drawdown periods - Inflation Adjusted

Time Period: 1 September 1994 - 31 August 2024 (30 Years)

Time Period: 1 January 1985 - 31 August 2024 (~40 years)

Inflation Adjusted:

Chart Table Range

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Rolling Returns

For a detailed rolling return analysis, click here
Betterment Robo Advisor 90 Portfolio: Rolling Returns

A rolling return is a measure of investment performance that calculates the return of an investment over a set period of time, with the starting date rolling forward. This approach can provide a more accurate representation of the investment's historical performance and helps investors to evaluate the investment's consistency over time.

BETTERMENT ROBO ADVISOR 90 PORTFOLIO

Annualized Rolling Returns

Annualized Rolling Returns - Inflation Adjusted

Time Period: 1 September 1994 - 31 August 2024 (30 Years)

Time Period: 1 January 1985 - 31 August 2024 (~40 years)

Inflation Adjusted:

Return Chart Capital Chart Table

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The values shown for the rolling periods represent key statistical points: the minimum, maximum, median, and the 15th and 85th percentiles. These percentiles give insight into the distribution of the data, indicating the range within which the central 70% of the values lie, while the median represents the middle value.

Seasonality

In which months is it better to invest in Betterment Robo Advisor 90 Portfolio?

Both the Average Return and the Gain Frequency (Win %) are useful to get an idea of what happened in the past. They are retrieved considering the time period from January 1985 to August 2024.

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For further information about the seasonality, check the Asset Class Seasonality page.

Monthly Returns

This section provides a visual/tabular representation of the performance variability in the Betterment Robo Advisor 90 Portfolio over time. It illustrates the distribution of monthly returns, showcasing the range and frequency of positive and negative returns.

BETTERMENT ROBO ADVISOR 90 PORTFOLIO

Monthly Returns Distribution

Time Period: 1 September 1994 - 31 August 2024 (30 Years)

Time Period: 1 January 1985 - 31 August 2024 (~40 years)

224 Positive Months (62%) - 136 Negative Months (38%)

306 Positive Months (64%) - 170 Negative Months (36%)

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Methodology

Returns, up to December 2013, have been derived using the historical series of equivalent ETFs / Assets, instead of the actual ETFs of the portfolio.
You can find additional information on extended Data Sources here.

In particular, the series derived from equivalent datasets are:

Vanguard Total Stock Market (VTI), up to December 2001
Vanguard FTSE Developed Markets (VEA), up to December 2007
iShares MSCI Emerging Markets (EEM), up to December 2003
Vanguard Value (VTV), up to December 2004
Vanguard Mid-Cap Value (VOE), up to December 2006
iShares S&P Small-Cap 600 Value (IJS), up to December 2000
Vanguard Total Bond Market (BND), up to December 2007
Vanguard Total International Bond (BNDX), up to December 2013
iShares JP Morgan USD Em Mkts Bd (EMB), up to December 2007
iShares TIPS Bond (TIP), up to December 2003
SPDR Blmbg Barclays 1-3 Mth T-Bill (BIL), up to December 2007

Portfolio efficiency

The following portfolios granted a higher return over 30 Years and a less severe drawdown at the same time.

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In the following table, you can compare the current portfolio with a list of famous portfolios. Metrics are calculated over the last 30 Years.

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...

Betterment Robo Advisor 90 Portfolio: ETF allocation and returns (2024)

FAQs

What is the average rate of return on Betterment? ›

The annual percentage yield ("APY") on the deposit balances in Betterment Cash Reserve ("Cash Reserve") is 5.00% and represents the weighted average of the APY on deposit balances at the banks participating in Cash Reserve (the "Program Banks") and is current as of April 2, 2024.

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Is Betterment robo investing good? ›

Betterment is one of the top robo-advisors, with goal-oriented tools and helpful tax strategies that will appeal to investors of all types. Access to human advisors is available with the Premium plan, or by purchasing a standalone advice package.

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What is the best portfolio for Betterment? ›

If your goal is short-term, we'll recommend a more conservative portfolio with lower expected returns with less volatility, and if your goal is longer term, we'll likely recommend a more aggressive portfolio with higher expected long-term returns with higher volatility.

How much return can I expect from robo-advisor? ›

Robo-advisor performance is one way to understand the value of digital advice. Learn how fees, enhanced features, and investment options can also be key considerations. Five-year returns from most robo-advisors range from 2%–5% per year.

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What is a reasonable rate of return on investment portfolio? ›

General ROI: A positive ROI is generally considered good, with a normal ROI of 5-7% often seen as a reasonable expectation. However, a strong general ROI is something greater than 10%.

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What percentage is considered a good return on an investment? ›

What is a good ROI? While the term good is subjective, many professionals consider a good ROI to be 10.5% or greater for investments in stocks. This number is the standard because it's the average return of the S&P 500 , an index that serves as a benchmark of the overall performance of the U.S. stock market.

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Does Betterment beat the S&P 500? ›

While U.S. investors know when their portfolio is underperforming the S&P 500, they don't know when they're underperforming international indices. The Betterment Portfolio is not designed to beat the market, which is difficult to do with any certainty and involves a lot of risk.

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What are the cons of Betterment? ›

One downside is that you'll need at least $100,000 for ongoing CFP guidance. Business Insider's personal finance team compared Betterment Investing to the best IRA accounts and the best robo-advisors. We found it to be an industry leader and named it to both lists.

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Is Betterment as good as Vanguard? ›

Both Betterment and Vanguard are excellent choices for an investor who wants to focus on long-term, fund-based investing. Beyond that, the question boils down to how hands-on you want to be.

Which robo-advisor has the best performance? ›

If you're in the market for a robo-advisor, there are plenty of providers to choose from — but important factors like fees, investment portfolios, account minimums and other features can vary widely. In our analysis, the two robo-advisors with the top scores are Wealthfront and Betterment.

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Do robo-advisors beat S&P 500? ›

Do robo-advisors outperform the S&P 500? Robo-advisors can outperform the S&P 500 or they can underperform it. It depends on the timing and what they have you invested in. Many robo-advisors will put a percentage of your portfolio in an index fund or a variety of funds intended to track the S&P 500.

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What is one of the biggest downfalls of robo-advisors? ›

Limited Flexibility

Most robo-advisors won't be able to help you if you want to sell call options on an existing portfolio or buy individual stocks.

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How much interest does Betterment pay? ›

Up to 5.50% annual percentage yield** on Betterment Cash Reserve for new account owners for three months once they fund their account (with a qualifying deposit within 14 days of opening the account); 5.00% after promotion ends and for current customers. No monthly fees or minimum balance.

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What is a realistic average rate of return? ›

A good return on investment is generally considered to be about 7% per year, based on the average historic return of the S&P 500 index, and adjusting for inflation.

What is a realistic rate of return on retirement investments? ›

Many consider a conservative rate of return in retirement 10% or less because of historical returns. Here's what you need to know. Need help planning for retirement? A financial advisor can help you manage your portfolio, figure out how much income you'll need and assist in other important decisions.

What is the ideal average rate of return? ›

A good return on investment is generally considered to be about 7% per year, which is also the average annual return of the S&P 500, adjusting for inflation.

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			Chg (%)		Return (%)	Return (%) as of Aug 31, 2024
			1 Day	*Time ET^()**	Sep 2024	YTD (8M)	1M	6M	1Y	5Y	10Y	30Y	MAX (~40Y)
Betterment Robo Advisor 90 Portfolio			0.66		-0.69	12.54	2.00	9.74	19.56	9.92	7.68	8.31	10.55
US Inflation Adjusted return						10.61	1.81	8.67	16.54	5.52	4.71	5.65	7.55
*Components*
VTI	USD	Vanguard Total Stock Market	0.70	Sep 13 2024	-0.42	18.18	2.13	10.99	26.19	15.12	12.32	10.53	11.39
VEA	USD	Vanguard FTSE Developed Markets	0.27	Sep 13 2024	-1.51	11.03	2.91	9.26	18.58	8.71	5.37	5.08	8.09
EEM	USD	iShares MSCI Emerging Markets	0.47	Sep 13 2024	-1.25	8.60	0.98	9.20	13.60	3.87	1.82	4.55	8.79
VTV	USD	Vanguard Value	0.72	Sep 13 2024	-0.82	17.08	2.88	12.33	23.61	12.66	10.46	9.68	11.08
VOE	USD	Vanguard Mid-Cap Value	1.02	Sep 13 2024	-0.17	14.58	3.03	11.86	21.99	11.17	8.90	10.80	12.01
IJS	USD		2.73	Sep 13 2024	-1.44	4.93	-1.38	8.41	13.83	10.21	8.13	10.46	11.86
BND	USD	Vanguard Total Bond Market	0.21	Sep 13 2024	1.76	3.24	1.45	4.83	7.33	-0.09	1.60	4.40	5.75
BNDX	USD	Vanguard Total International Bond	0.18	Sep 13 2024	1.25	2.12	0.51	3.28	6.96	-0.52	2.01	5.10	6.58
EMB	USD	iShares JP Morgan USD Em Mkts Bd	0.45	Sep 13 2024	1.44	6.51	2.27	6.98	13.01	-0.03	2.38	9.29	9.48
TIP	USD	iShares TIPS Bond	0.34	Sep 13 2024	1.47	3.30	0.80	4.05	5.90	1.56	1.80	5.27	6.71
BIL	USD	SPDR Blmbg Barclays 1-3 Mth T-Bill	0.05	Sep 13 2024	0.21	3.54	0.46	2.64	5.33	2.13	1.45	2.29	3.14
Returns over 1 year are annualized
(*) Eastern Time (ET - America/New York)
US Inflation is updated to Aug 2024. Inflation (annualized) is 1Y: 2.59% , 5Y: 4.17% , 10Y: 2.84% , 30Y: 2.52%

Betterment Robo Advisor 90 Portfolio: ETF allocation and returns (2024)

Table of contents

Asset Allocation and ETFs

Portfolio and ETF Returns as of Aug 31, 2024

Capital Growth as of Aug 31, 2024

Portfolio Metrics as of Aug 31, 2024

Portfolio Components Correlation

Drawdowns

Rolling Returns

Seasonality

Monthly Returns

Portfolio efficiency

FAQs

What is the average rate of return on Betterment? ›

Do robo-advisors beat S&P 500? ›