Meet the Innovative Technology Portfolio

Essentially the most useful corporations of in the present day aren’t the identical bunch as 20 years in the past. With every era comes new challengers and new classes (Hi there, Huge Tech). And whereas we are able to’t actually predict the following class of prime performers, innovation will seemingly come from components of the economic system that use expertise in new and thrilling purposes, industries like:

• semiconductors
• clear vitality
• digital actuality
• synthetic intelligence
• nanotechnology

This dynamic led us to create the Innovative Technology portfolio.

What’s the Progressive Expertise Portfolio?

The portfolio will increase your publicity to corporations pioneering the expertise talked about above and extra. These improvements carry the potential to reshape the best way we work and play, and within the course of form the market’s subsequent era of high-performing corporations.

Utilizing the Core portfolio as its basis, the Progressive Expertise portfolio is constructed to generate long-term returns with a diversified, low-cost strategy, however with elevated publicity to threat. It incorporates most of the identical investments as Core, but in addition consists of an allocation to the SPDR S&P Kensho New Economies Composite ETF (Ticker: KOMP). For a extra in-depth take a look at the portfolio’s methodology, skip over to its disclosure.

How are pioneering corporations chosen?

The Kensho index that KOMP tracks makes use of a particular department of synthetic intelligence referred to as Pure Language Processing to display regulatory information and determine corporations serving to drive the Fourth Industrial Revolution. After selecting corporations throughout greater than 20 classes, every is mixed into the general index and weighted in line with their threat and return profiles.

Why may you select this portfolio over Betterment’s Core portfolio?

We constructed the Progressive Expertise portfolio to carry out kind of the identical as an equal inventory/bond allocation of the Core portfolio. It could, nonetheless, outperform or underperform relying on the return expertise of KOMP and the businesses this fund tracks.

So, for those who consider the rising tech of in the present day will drive the returns of tomorrow—and are prepared to tackle some further threat to take that long-term view— this can be a portfolio made with you in thoughts. Threat and early adoption can are likely to go hand-in-hand, in spite of everything.

Why put money into innovation with Betterment?

Progressive expertise is in our DNA. We would be the largest independent digital financial advisor now, however the “robo advisor” class barely existed once we opened store in 2008. In the event you select to put money into the Progressive Expertise portfolio with Betterment, you not solely get our professional, tech- forward, portfolio management tools, you additionally get an funding supervisor with first-hand expertise within the subject of first movers.