• What’s different?

    Last Updated: July 19, 2017 8:55AM EDT
    We’ve replaced our total U.S. stock market exposure (a single ticker) with three tickers, one representing SRI large-cap, one for conventional mid-cap, and one for conventional small-cap. These refer to U.S. mid-cap and small-cap growth funds. They were added so as we could maintain our value/small-cap tilts.
     
    These changes have led to a 42% improvement to social responsibility scores on U.S. large-cap stocks (compared to the core portfolio) while remaining diversified and controlling cost.
    All other SRI portfolio asset classes mirror Betterment’s portfolio because an acceptable alternative doesn’t yet exist or because the respective fund’s fees or liquidity limitations make for a prohibitively high cost. 
     
  • Why isn’t the SRI Portfolio more sustainable?

    Last Updated: July 19, 2017 8:55AM EDT
    We wanted a portfolio that was well diversified and cost controlled while still having a value/small cap tilt focus. Currently the SRI space doesn’t have enough available options yet for funds with sufficient liquidity. As SRI options become more prevalent, and therefore more available to us, we will work to make the portfolio even more sustainable over time.
  • How do I enable an SRI portfolio?

    Last Updated: July 21, 2017 4:24PM EDT
    You can enable the SRI portfolio when adding a new goal or updating your existing goal’s portfolio strategy via the Portfolio tab of your Betterment account.
     
    Once on your Portfolio tab, you will see an “edit” option under the Portfolio Strategy section. Once you select “edit” you will be sent to the Portfolio Strategy flow where you can opt into the SRI portfolio.
     
  • When will this be full SRI?

    Last Updated: July 19, 2017 8:56AM EDT
    In the future, we will improve our SRI portfolio even further, iterating and adding new SRI funds that satisfy our cost and diversification requirements as they become available. 
  • How do these new tickers impact the advice I will receive from the Betterment app?

    Last Updated: July 19, 2017 8:56AM EDT
    The Betterment SRI has its own set of projections and advice based on capital market assumptions. Outputs such as the projection graph and recommended deposits will reflect your new portfolio.  
  • Where can I see exactly what I’m invested in?

    Last Updated: July 19, 2017 8:56AM EDT
    Yes, you can see exactly which companies you are invested in by clicking on the ticker name in the Portfolio tab of your account. This will take you directly to the fund’s prospectus page which will list all companies the fund tracks. 
  • What will this new portfolio cost me in fund level fees?

    Last Updated: July 19, 2017 8:56AM EDT
    The expense ratio for the Betterment SRI portfolio will be between 0.14% and 0.22%, depending on the relative allocation to stocks and bonds within the portfolio. For more information please review our white paper
  • Will the performance of my SRI portfolio deviate from my Betterment portfolio?

    Last Updated: July 19, 2017 8:56AM EDT
    At a given stock allocation level, SRI and Betterment portfolios are highly correlated based on historical data. For example, at 70% stocks, these portfolios have a 99.8% correlation. We expect the performance of an SRI portfolio to closely track that of a Betterment portfolio at a given stock allocation level.  However, an SRI portfolio will have a slightly higher fund fee than a corresponding Betterment portfolio. You can read more about this in our white paper.
  • Can I go back to the Betterment portfolio once I opt into SRI?

    Last Updated: July 19, 2017 8:57AM EDT
    Yes. Once on your Portfolio tab, select your SRI goal, you will see an option that reads “edit” under Portfolio Strategy. Simply click on the “edit” option to move your portfolio out of SRI and back into Betterment’s. You can only make one change to your election in a single day.
  • Is this available to everyone?

    Last Updated: July 19, 2017 8:57AM EDT
    Yes. The SRI portfolio is available to all customers, regardless of your pricing tier.
  • Is there a balance minimum for the SRI portfolio option?

    Last Updated: July 19, 2017 8:57AM EDT
    No.
  • If I have TLH enabled, how long will I be in the tertiary position?

    Last Updated: July 19, 2017 8:57AM EDT
    Our optimizer strongly prefers to shed tertiaries from the portfolio when there is no wash sale impact. This does not guarantee that it will be removed, but our optimization algorithms are strongly guided to avoid tertiary exposure. 
  • Why don't I see the option to update my TCP goals to the SRI portfolio strategy?

    Last Updated: July 31, 2017 1:02PM EDT
    There are a few reasons why you may not be able to see the option to opt into the SRI portfolio:
    1. You have Tax Coordinated Portfolio enabled on the goal that you are trying to update. Currently, customers with TCP do have the ability to open a new goal and elect the SRI portfolio through the website or app, but the new goal cannot be associated with the TCP for now. If you wish to update an existing TCP goal’s portfolio to SRI, please contact us via support@betterment.com for assistance.
    2. You have state-specific muni bonds. Contact us at support@betterment.com for assistance.
    3. You are affiliated with a broker-dealer. 

    We do not support SRI for affiliated individuals but we hope to in the future. In the meantime, We apologize for any inconvenience.
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