Betterment and Ellevest both offer portfolios comprised of low-cost ETFs that provide investors exposure to a number of different asset classes across the globe. Both Betterment and Ellevest also allow individuals to customize their portfolio risk allocation (i.e., stock-to-bond ratio). Despite these similarities, however, there are some differences that you should be aware of when deciding whether to transition to Betterment.
- Certain Ellevest portfolios include allocations to mutual funds. If your account includes mutual funds (tickers ACCSX and PXWIX), those funds will be liquidated (which may have tax implications) prior to the transfer to Betterment.
- Ellevest included a small cash allocation in their investing portfolios, which is not the case for Betterment portfolios.
On the Transfer Date, your account assets will be transferred to Betterment in-kind. Your Ellevest portfolio strategy will then be gradually transitioned to a substantially similar Betterment portfolio strategy, as described below:
Ellevest Standard - Betterment Core
If you were previously invested in a Ellevest Standard portfolio, your holdings will be transitioned to a Betterment Core portfolio strategy, with a risk allocation (i.e., stock-to-bond ratio) based on your prior Ellevest risk level and whether your investing account is taxable or tax-advantaged. For example, if you had a taxable Ellevest Standard portfolio with a 90% stocks and 10% bonds allocation, your portfolio will be updated to a taxable Betterment Core portfolio with a 90% stocks and 10% bonds allocation. Betterment’s Core portfolio strategy is its flagship portfolio composed of globally diversified, low-cost ETFs.
Ellevest Impact - Betterment SRI Broad Impact
If you were previously invested in a Ellevest Impact portfolio, your holdings will be transitioned to a Betterment SRI Broad Impact portfolio strategy, with a risk allocation (i.e., stock-to-bond ratio) based on your prior Ellevest risk level and whether your investing account is taxable or tax-advantaged. For example, if you had a taxable Ellevest Impact portfolio with a 90% stocks and 10% bonds allocation, your portfolio will be updated to a taxable Betterment SRI Broad Impact portfolio with a 90% stocks and 10% bonds allocation. Betterment’s SRI Broad Impact portfolio strategy invests in ETFs that provide exposure to investments targeting strong environmental, social, and governance criteria.
Ellvest Cash - Betterment Core 0% Stock
If you previously held an Ellevest Cash account through the Goldman Sachs Custody Solutions (GSCS) FDIC-insured cash sweep offering, your assets will be invested in a Betterment Core portfolio strategy with a risk allocation set to 0% stocks and 100% bonds. Betterment also offers a high-yield cash account, Cash Reserve, which you can elect after your funds transfer to Betterment. Learn more about Cash Reserve here.
Related Articles