The Betterment portfolio seeks to deliver both income and capital gain. The BlackRock Target Income portfolios are designed for those in retirement or those seeking investment income while minimizing capital losses. Customers can select from four income portfolios at varying levels of risk.
The best way to think about this is in comparison to the Betterment portfolio. The Blackrock Target Income Portfolio is not as concerned about picking investments that will grow over time. It focuses on investments that seek to generate income.
A far greater share of the the Betterment portfolio’s returns come from capital appreciation. The Betterment portfolio can still earn income (dividends), but likely not as much as the Income Portfolio.