Betterment adds mutual funds for custom portfolio builders

Betterment adds mutual funds for custom portfolio builders
The wealth tech provider is revamping its RIA custody offering for advisors by adding thousands of mutual funds.
MAR 21, 2024

Advisors using Betterment’s RIA custody offering can now expect to see a thicker fund catalog for its custom portfolios. The market-leading independent technology provider announced Thursday that it has strengthened its Betterment for Advisors division by introducing thousands of mutual funds to its custom portfolio options.

Betterment unveiled the changes strategically in time with a red-letter date in financial history, as the mutual fund structure celebrated its one hundredth birthday.

The wealth tech titan’s sweeping update – the first of many additions to the Betterment for Advisors platform this year, it says – also comes roughly two years after it first unlocked the ability for advisors to bring their own custom model portfolios.

"Betterment for Advisors is laser-focused on delivering a holistic platform that includes flexible portfolio options for RIAs across retirement and wealth," said Tom Moore, head of Betterment for Advisors.

“Adding mutual funds has long been advisors' top request, and we are thrilled to be able to offer this capability,” Moore said.

Betterment’s revamp opens up a vast ocean of possibility for advisors on its RIA custody platform. Based on statistics from the Federal Reserve, the US mutual fund market holds roughly $20 trillion in assets – a far cry from the roughly $4 trillion it held 25 years ago.

The firm says users of Betterment for Advisors can now complement ETFs with mutual funds in their custom portfolios using options from leading asset managers such as Vanguard, Pimco, T. Rowe Price and Fidelity, with more options to come in the weeks ahead.

Betterment’s mutual fund shelf reveal follows other significant updates it made in 2023, including the launch of a suite of tax-efficient tools that advisors can use to manage their clients’ assets, as well as improvements to its digital client onboarding.

Not all commercial real estate is vacant office buildings, says Whitestone REIT CEO

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.