At Betterment for Advisors, we seek to achieve higher expected take-home returns for clients. Take-home returns are defined as returns net of fees, taxes, and risk-borne and behavioral mistakes.
Betterment for Advisors’ clients are typically invested in our core globally diversified, index-tracking portfolio. Our investment team does not seek to add any form of market alpha by stock picking, sector weighting, or market timing. Our allocations are strategic, not tactical. We aim to deliver the higher expected risk-adjusted returns by diversifying client portfolios, using low-cost index-tracking ETFs.
Our team does seek individual investor alpha – to help clients improve their performance on a risk-adjusted, after-tax, and after-fee basis. To help achieve this, we manage client portfolios on an individual level, systematizing optimal behaviors such as rebalancing, tax loss harvesting, and goal tracking with minimal effort on the client's’ part.
Betterment for Advisors monitors investors’ behaviors and educates them on decisions and consequences in order to help protect clients from choices that may hinder performance.
