Earn Rewards: Sign up now and earn a special reward after your first deposit. See offer details

<title>Dismiss</title>

Betterment

Save, invest, retire

GET — On the App Store

View
<title>Dismiss</title>
Loading

Understanding Risk

Investing experts analyze returns vs. risk. So, what about risk? How do we quantify risk? What types of risk are there? We'll show you how to assess your performance based on the correlated risk.

Featured Articles

Assessing a Portfolio’s Diversification

Guidance on diversification to help you make portfolio changes, knowing the potential impact to the future performance of your investments.

Optimizing Performance in Lower Risk Betterment Portfolios

In this methodology, we provide insight into how we optimize the performance of the lower risk bonds in Betterment's portfolios.

What A Trip To The Casino Can Teach You About Investing And Risk

Learn the ins and outs of how gambling works from a quantitative investor, and use it to your advantage in investing for the long term.

Recent Articles

Why Flexibility is Key in Withdrawing Retirement Income

A strong retirement plan relies on proper preparation. But flexibility in your plan may be the most important quality you can have.

How You Can Reach Your Investment Goal—Even When You Veer Off-Track

We highlight all of the intelligent strategies we use to help protect you from market downturns as you approach the target dates for your goals—and discuss the actions you can take if your goals become off-track.

Understanding Our Flexible Portfolios

Learn how advanced investors can take more control over their portfolio by modifying the weightings of individual asset classes.

Understanding Automatic Allocation Adjustment

Learn how we automatically adjust your risk level over time, which helps you stay on track without having to lift a finger.

How Portfolio Rebalancing Works to Manage Risk

Portfolio rebalancing, when done effectively, can help manage risk and keep you on track to pursue the expected returns you want to reach your goals.

Currency Risk Does Not Belong in Your Bond Portfolio

International bonds can help improve your portfolio’s performance, but leave currency bets to gamblers.

Allocation Advice for Betterment Portfolios

Unlike the risk questionnaires, our algorithm weights investment time horizon and downside risk more heavily, and allows you to deviate from our advice if you want to deviate.