The Betterment Core portfolio seeks to deliver both capital appreciation and preservation depending on the risk level the customer is in. The BlackRock Target Income portfolios are designed for those in retirement or those seeking investment income while minimizing capital losses. It can also be an alternative to a cash account for those that are willing to take on some risk to potentially generate and reinvest yield. Customers can select from four income portfolios at varying levels of risk.
Compared to the Core portfolio, the Target Income Portfolio is not as concerned about picking investments that will grow over time. It focuses on investments that seek to generate income.
A far greater share of the Core portfolio’s returns come from capital appreciation. The Core portfolio can still earn income (dividends), but it is not the portfolio’s primary investment objective, as it is for the Target Income portfolio.
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