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

Upcoming maintenance: Our website and mobile apps will be unavailable from midnight Saturday to 4am Eastern time on Sunday for routine maintenance.

Introducing Checking

Download our app and gain access to no‑fee, hassle‑free checking.

Introducing Checking! Our no-fee, hassle-free, mobile-first checking account. Learn more

What the CARES Act and market volatility mean for 401(k)s. See resources

<title>Dismiss</title>

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.

Articles by Betterment Editors
By the Editorial Staff Betterment Resource Center Published Sep. 01, 2018
Published Sep. 01, 2018
2 min read

TABLE OF CONTENTS


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.

Learn more about our portfolio construction strategy.

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.

Back to Top

Recommended Content

View All Resources

Understanding The Inverted Yield Curve

Our economy is about to make history. June of 2019 marked 10 years of expansion of the U.S. economy, which ties with the previous record spanning March 1991 to March 2001.

Our SRI Portfolio Just Got Even Better

The proportion of socially responsible funds used in our SRI portfolio is growing.

Help Your Employees Take Advantage of the Saver’s Credit

An excellent incentive for your employees to contribute to your retirement plan.

Explore your first goal

Cash Reserve

Our high-yield account built to help you earn more on every dollar you save.

Safety Net

This is a great place to start—an emergency fund for life's unplanned hiccups. A safety net is a conservative portfolio.

Retirement

Whether it's a long way off or just around the corner, we'll help you save for the retirement you deserve.

General Investing

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.

See details and disclosure for Betterment's articles and FAQs.