First, Goldman Sachs built the portfolio with a mix of short-term bond ETFs containing treasury, municipal, and corporate bonds, which seek to offer lower risk than stock investing, leveraging their expertise in bond markets.
Next, Betterment uses the information that you provide about your tax situation, including your state residency, federal tax bracket, and income, to personalize the portfolio for you.
Finally, Betterment adjusts the portfolio strategy to consider market conditions and taxable equivalent yields monthly. When you let Betterment know that your tax situation has changed and as interest rates shift, Betterment will rebalance your personalized portfolio.
To learn more, see our disclosures.
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