The Smart Beta portfolio invests more heavily in companies based on trends with the potential to outperform the broader market over the long term. These companies have at least one of the following characteristics: 1) they’re cheap relative to their accounting value, 2) they tend to be sustainably profitable over time, 3) their returns are relatively low in volatility and/or 4) they’ve been trending strongly upward in price. (These characteristics are often referred to as Smart Beta factors.) While this portfolio maintains broad diversification and can lead to higher potential long-term gains, it will also be exposed to a greater risk of periodic losses.
Who it's for
Investors seeking greater growth potential
Allocations as of Jan. 2, 2024
This portfolio strategy has 101 different allocation options, from 0% bonds to 100% stocks. The 70% stock, 30% bond portfolio has been selected to display holdings. Different allocations will have different weights of each asset class. Betterment may recommend a different allocation based on various goal inputs tailored to each client, including the time horizon for your goal with the longest period starting at 90% stocks. The holdings shown reflect the portfolio model for tax-deferred accounts, like IRAs or 401(k)s. Expect differences in taxable accounts.