What You Need to Know
- Advisors can choose the ETFs they want to use on the platform.
- They are no longer limited to using ETFs that Betterment offered.
- Advisors can also incorporate their own capital market assumptions used for planning and advice.
Betterment for Advisors has expanded its investment flexibility to include advisors’ own model portfolios of ETFs on the platform as well as their own capital market assumptions used for financial planning, advice and performance projections provided to clients.
“We want to make sure firms are truly interested in using the platform,” said Jon Mauney, general manager of Betterment for Advisors. ”We’re coming for Schwab and Fidelity, though we’re obviously much smaller.”
Before the launch of Custom Model Portfolios, as the new offering is called, advisors on the Betterment for Advisors platform could only use a fixed set of asset classes defined by Betterment and they had no input with respect to fund selection. Now they can choose any ETFs to build their portfolios as well as different asset allocations and for no additional fee, according to Mauney.
“Our main priority in 2021 is getting down what advisors need to run their practices more efficiently,” Mauney said.