Author Topic: How Does Betterment Determine Investment Holdings and Weight ?  (Read 1155 times)

bootyman

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How Does Betterment Determine Investment Holdings and Weight ?
« on: November 28, 2015, 05:54:32 PM »
Im not talking about stocks vs bonds.  Im talking about why do they have 16% in 'Us Total Stock Market and 5% in U-S Mid-Cap Value?  How did this decide this was best?

Hell (to be radical) why don't they do 35% in emerging markets?

pbkmaine

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Re: How Does Betterment Determine Investment Holdings and Weight ?
« Reply #1 on: November 28, 2015, 06:28:03 PM »
I assume they use a mean variance optimizer like this:

http://www.morningstar.hn/US/documents/MethodologyDocuments/Morningstar_Asset_Allocation_Optimization_Methodology.pdf


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