verifiedCurated Strategy
· 29 yr backtestRobo-Advisor

Betterment 100 Portfolio

Real CAGR8.8%
Max Drawdown-54.9%
Sharpe Ratio0.33

The Betterment 100 Portfolio represents the fully equity-allocated end of Betterment's automated investment service. Betterment, a pioneer in the robo-advisor space founded in 2010, constructs its portfolios using a globally diversified mix of stock index funds, and at the 100% equity setting there is no bond allocation at all. The portfolio spans US equities, international developed markets, and emerging markets, weighted roughly in proportion to global market capitalisation.

Investment Philosophy

Betterment's approach is rooted in the academic case for broad market index investing combined with global diversification. At 100% equities, the portfolio accepts maximum short-term volatility in pursuit of the highest expected long-run return from a passive index strategy. The design reflects the view that for investors with sufficiently long time horizons and high risk tolerance, holding bonds reduces expected wealth without offering meaningful protection.

Who It's For

This allocation is best suited to investors with a very long time horizon — typically those in their twenties or early thirties saving for retirement decades away — and a high tolerance for watching their portfolio drop significantly during market downturns without selling. It requires genuine emotional discipline.

Pros

  • Maximum long-run growth potential from a passive, globally diversified equity strategy
  • Broad international diversification reduces concentration in any single economy
  • Low cost and simple to implement through Betterment's platform or via index funds independently

Cons

  • No bond buffer means the portfolio can experience severe drawdowns during equity bear markets
  • Not appropriate for investors with near-term liquidity needs or shorter time horizons
  • Global market-cap weighting results in heavy US equity concentration when US markets are relatively large
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Target Allocation

Static
US Total Stock Market(VTI)34.6%
International Developed Equity(EFA)27.3%
Emerging Markets Equity(EEM)15%
US Large-Cap Value(IVE)9.2%
US Mid-Cap Value(JKI)7.5%
US Small-Cap Value(IWN)6.4%

Performance Snapshot

trending_upReal CAGR
8.77%
balanceSharpe Ratio
0.330
trending_downMax Drawdown
-54.92%
show_chartSortino Ratio
0.040
arrow_upwardBest Year
+37.0%
arrow_downwardWorst Year
-39.4%
update10-Year CAGR
11.35%
warningUlcer Index
12.41
analyticsUlcer Perf. Index
0.340
account_balanceGFC CAGR
-4.2%
computerDot-com CAGR
-8.5%
syncTrade Frequency
Static
shieldRisk Level
5/5 — Aggressive
calendar_monthMin. Timeline
10 years
historyBacktest Period
29 years

Rolling Returns

PeriodLowAverageHigh
1 Year-47.4%+9.7%+64.1%
3 Year-15.3%+8.1%+26.6%
5 Year-4.4%+7.8%+21.6%
10 Year+1.0%+7.7%+13.8%
Compare to:

Growth of $10,000

Betterment 100 Portfolio
Sharpe Ratio0.33
Best Year+37.0%
Worst Year-39.4%
Final Value$117,833

Historical Drawdown

Percentage decline from the portfolio's peak value at each point in time.

Rolling Returns

Annualised return for each rolling period ending on that date.

Annualised return for each 1Y period ending on that date.

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