Understanding Our Goldman Sachs Smart Beta Portfolio
Ever heard of factor investing? Learn more about our Goldman Sachs Smart Beta portfolio, which favors investments based on four specific factors.
TABLE OF CONTENTS
- What is the Goldman Sachs Smart Beta portfolio?
- How is it different than the Betterment portfolio?
- Can I have multiple portfolio strategies in one account?
- What is your affiliation with Goldman Sachs?
What is the Goldman Sachs Smart Beta portfolio?
The Goldman Sachs Smart Beta Portfolio strategy invests in stocks and bonds that have specific characteristics. The strategy favors stocks based on four well-established drivers of performance, often referred to as factors.
The factors are:
- Good value
- Strong momentum
- High quality
- Low volatility
The Goldman Sachs Smart Beta portfolio has 101 portfolio variations, ranging from 0% stocks to 100% stocks in 1% increments.
For more information on the construction of the portfolio strategy, please click here.
How is it different than the Betterment portfolio?
The Smart Beta portfolio consists of Smart Beta ETFs that include stocks from companies screened for the four Smart Beta factors—value, high quality, strong momentum, and low volatility.
You will still pay the regular Betterment management fee. The fees for the underlying funds are a bit more expensive, particularly at higher stock allocation levels.
Going from 0% to 100% stocks in the portfolio corresponds with weighted fund fees increasing from 0.13% to 0.22%. For Betterment portfolios, weighted fund fees generally decline as stock allocation increases, starting at 0.15% at 0% stocks and declining toward about 0.07% at 100% stocks.
Can I have multiple portfolio strategies in one account?
Yes, you can have a different portfolio strategy for each goal in your account. The only exception to this is goals that are tax coordinated because those goals must be all the same strategy.
You can also have multiple goals with the same portfolio strategy but with different allocations. This allows you to take full advantage of our goal-based investing approach.
What is your affiliation with Goldman Sachs?
We partner with Goldman Sachs Asset Management to bring you the Smart Beta portfolio option. We do so to provide more personalized solutions that align to your goals, preferences, and values.
How Betterment Works During Volatile Markets
It can be difficult to ride out a market downturn when you can see it affecting your investment portfolio. We have automated features in place to address volatile markets when they occur.
What is Tax Coordination? How Asset Location Works at Betterment
What is Betterment's approach to asset location? It's called Tax Coordination, and it's a built-in tax optimization strategy for retirement goals at Betterment.
How Checking Performance Might Hurt Your Performance
As your investment manager, we strive to maximize your returns and reduce your investment costs. But did you know that we also try to help you reduce your stress?
Explore your first goal
This is a great place to start—an emergency fund for life's unplanned hiccups. A safety net is a conservative portfolio.
Whether it's a long way off or just around the corner, we'll help you save for the retirement you deserve.
If you want to invest and build wealth over time, then this is the goal for you. This is an excellent goal type for unknown future needs or money you plan to pass to future generations.