FAQ: White-labeled ETF Model Portfolios
Build your own customized portfolios by selecting from funds in the Betterment Core Strategy.
What are Model Portfolios with Betterment for Advisors?
Model Portfolios allow advisors to create white-labeled portfolios, which gives you even more control in personalizing your clients’ investments. It allows you to further modify the Betterment portfolio strategy by adjusting the individual asset class weights and accessing additional asset classes. We’ll give you a risk and diversification assessment of your changes, and as with all of our portfolios, your clients will continue to have access to the same automated features available on the Betterment portfolios.
How do I create my own portfolios?
Firm admins can create portfolios for your clients via the advisor dashboard. You can go to the dashboard and select the Portfolios tab on the left. From there, you'll see both the Betterment Portfolios as well as your Firm's own portfolios. Firm Admins will find "Create Portfolio" on the Firm's portfolios page. If additional members of your team need admin level access on the platform, please have your firm's primary contact on file notify us via email@example.com.
Can the name for each Model Portfolio be customized?
Yes, the model portfolios can be completely white-labeled and named whatever the firm admin deems appropriate.
How do I assign my firm’s Model Portfolios to clients?
To use one of your firm’s model portfolios for an existing goal, you can select the client’s goal and click edit on the current portfolio strategy. From there, select your custom portfolio from the dropdown.
How do I update my firm’s Model Portfolios?
Firm admins can update model portfolios on the Portfolios tab located in the left sidebar.
How will adjusting my clients’ portfolios impact their fees?
The fees Betterment collects from the client do not change based on the portfolio strategy assigned to each client’s goal(s). The average expense ratio associated with a Model Portfolio depends on the portfolio’s underlying ETFs. Any saved adjustments could impact your client’s average fund fees.
Will rebalancing and auto-adjust work the same?
Rebalancing will operate in the same fashion as the other Betterment model portfolios, but auto-adjust will not be available on Model Portfolios.
What other impacts should my clients and I expect when adjusting their funded goal to a Model Portfolio strategy created by my firm?
Changing portfolio strategies will bring the goal to a new target allocation based on the Model Portfolio. This sells securities and could possibly realize capital gains. Moreover, the goal will be rebalanced entirely to match the new desired target allocation, regardless of tax consequences. As with all sell trades, we will utilize TaxMin to reduce the tax impact as much as possible. Once the portfolio change is submitted, please allow 2-3 business days for the change to execute. This allows for the 2-day settlement required on ETF sale transactions.
Will Tax Loss Harvesting + (TLH+) and Tax Coordination work with these new Model Portfolios holding ETFs?
Yes, the TLH+ feature will be available on Model Portfolios holding ETFs in taxable accounts. TCP is not yet available on goals with a Model Portfolio holding ETFs. 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 a 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.