Betterment offers investors the choice to invest in a few different portfolio strategies, each suitable for different purposes. Betterment’s Core portfolio strategy is its flagship portfolio composed of globally diversified, low-cost ETFs. Betterment also offers three Socially Responsible Investing (SRI) portfolios, one focusing on Broad Impact, one on Climate Impact, and another on Social Impact. These portfolios invest in all of the same global asset classes as the Betterment Core portfolio, but each portfolio invests in a different set of ETFs that screen their investments for a subset of environmental, social and governance issues. Betterment also offers an Innovation Technology portfolio strategy for investors who wish to gain more exposure to new industries and technologies, and a Value Tilt portfolio strategy for those investors who wish to invest more heavily in value stocks.
In addition to Betterment constructed strategies, Betterment offers the option to invest in portfolio strategies provided by third parties, including Goldman Sachs Smart Beta portfolios and BlackRock Target Income portfolios. For investors with views that differ from Betterment’s available portfolio strategies, they can use a Flexible Portfolio, which allows them to invest in the same ETFs as the Betterment Core portfolio strategy with the ability to adjust the individual weights to each asset class.
How does my Marcus Invest portfolio strategy compare to Betterment portfolios?
Betterment and Marcus Invest both offer portfolios comprised of ETFs that give investors exposure to a number of different asset classes across the globe. Both Betterment and Marcus Invest also allow individuals to customize their portfolio risk allocation (i.e. stock to bond ratio). Despite these similarities, however, there are some differences that you should consider when deciding whether to transition to Betterment. Marcus Invest includes a small cash allocation in their investing portfolios, which is not the case for Betterment portfolios.
On the Transfer Date, unless you opt out of the transfer by June 20, 2024, your account assets will be transferred to Betterment in-kind. Your Marcus Invest portfolio strategy will then be gradually transitioned to a similar Betterment portfolio strategy, as described below:
Marcus Invest Core - Betterment Core
If you were previously invested in a Marcus Invest Core portfolio, your holdings will be transitioned to a Betterment Core portfolio strategy, with a risk allocation (i.e. stock to bond ratio) based on your prior Marcus Invest risk level and whether your investing account is taxable or tax-advantaged. For example, if you had a taxable Marcus Invest Core portfolio with a 90% stocks and 10% bonds allocation, your portfolio will be updated to a taxable Betterment Core portfolio with a 90% stocks and 10% bonds allocation.
Marcus Invest Impact - Betterment Broad Impact
If you were previously invested in a Marcus Invest Impact portfolio, your holdings will be transitioned to a Betterment SRI Broad Impact portfolio strategy, with a risk allocation (i.e. stock to bond ratio) based on your prior Marcus Invest risk level and whether your investing account is taxable or tax-advantaged. For example, if you had a taxable Marcus Invest Impact portfolio with an 90% stocks and 10% bonds allocation, your portfolio will be updated to a taxable Betterment SRI Broad Impact portfolio with a 90% stocks and 10% bonds allocation.
Marcus Invest Smart Beta - Betterment by Goldman Sachs Smart Beta
If you were previously invested in a Marcus Invest Smart Beta portfolio, your holdings will be transitioned to a Goldman Sachs Smart Beta portfolio strategy, with a risk allocation (i.e. stock to bond ratio) based on your prior Marcus Invest risk level and whether your investing account is taxable or tax-advantaged. For example, if you had a taxable Marcus Invest Smart Beta portfolio with a 90% stocks and 10% bonds allocation, your portfolio will be updated to a taxable Goldman Sachs Smart Beta portfolio with a 90% stocks and 10% bonds allocation.
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