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Betterment 80/20

Last updated Mar 2, 2024

Asset Allocation


MUB 7.4%BNDX 6%VWOB 3.3%AGG 2%STIP 1.3%VTI 27.9%VEA 20.5%VWO 13%VTV 7.4%VOE 6.1%VBR 5.1%BondBondEquityEquity
PositionCategory/SectorWeight
MUB
iShares National AMT-Free Muni Bond ETF
Municipal Bonds

7.40%

BNDX
Vanguard Total International Bond ETF
Total Bond Market

6%

VWOB
Vanguard Emerging Markets Government Bond ETF
Emerging Markets Bonds

3.30%

AGG
iShares Core U.S. Aggregate Bond ETF
Total Bond Market

2%

STIP
iShares 0-5 Year TIPS Bond ETF
Inflation-Protected Bonds

1.30%

VTI
Vanguard Total Stock Market ETF
Large Cap Growth Equities

27.90%

VEA
Vanguard FTSE Developed Markets ETF
Foreign Large Cap Equities

20.50%

VWO
Vanguard FTSE Emerging Markets ETF
Emerging Markets Equities

13%

VTV
Vanguard Value ETF
Large Cap Value Equities

7.40%

VOE
Vanguard Mid-Cap Value ETF
Mid Cap Blend Equities

6.10%

VBR
Vanguard Small-Cap Value ETF
Small Cap Blend Equities

5.10%

S&P 500

Performance

The chart shows the growth of an initial investment of $10,000 in Betterment 80/20, comparing it to the performance of the S&P 500 index or another benchmark. All prices have been adjusted for splits and dividends. The portfolio is rebalanced Quarterly


80.00%100.00%120.00%140.00%160.00%180.00%200.00%220.00%OctoberNovemberDecember2024FebruaryMarch
122.27%
214.89%
Betterment 80/20
Benchmark (^GSPC)
Portfolio components

The earliest data available for this chart is Jun 4, 2013, corresponding to the inception date of BNDX

Returns

As of Mar 2, 2024, the Betterment 80/20 returned 3.33% Year-To-Date and 7.21% of annualized return in the last 10 years.


Year-To-Date1 month6 months1 year5 years (annualized)10 years (annualized)
^GSPC
S&P 500
7.70%6.01%13.76%29.03%12.89%10.63%
Betterment 80/203.33%3.13%9.17%13.93%8.08%7.16%
VBR
Vanguard Small-Cap Value ETF
1.93%3.77%8.98%9.04%9.14%8.35%
VTV
Vanguard Value ETF
4.91%3.04%10.36%13.49%10.74%10.15%
VTI
Vanguard Total Stock Market ETF
7.45%3.96%14.35%27.20%14.06%11.98%
VOE
Vanguard Mid-Cap Value ETF
2.97%3.64%9.25%7.96%9.16%8.47%
VEA
Vanguard FTSE Developed Markets ETF
2.71%3.49%9.53%12.57%6.93%4.67%
VWO
Vanguard FTSE Emerging Markets ETF
1.14%4.90%4.49%5.87%2.83%3.48%
STIP
iShares 0-5 Year TIPS Bond ETF
0.51%0.53%2.90%4.34%3.36%1.96%
MUB
iShares National AMT-Free Muni Bond ETF
-0.01%0.17%4.12%5.17%1.94%2.49%
AGG
iShares Core U.S. Aggregate Bond ETF
-1.15%-0.65%3.33%3.84%0.63%1.50%
BNDX
Vanguard Total International Bond ETF
-0.96%-0.11%3.96%6.91%0.44%2.12%
VWOB
Vanguard Emerging Markets Government Bond ETF
-0.34%1.03%6.10%8.77%0.80%2.67%

Monthly Returns Heatmap


JanFebMarAprMayJunJulAugSepOctNovDec
2024-0.60%3.15%
2023-2.84%-3.67%-2.69%7.75%4.95%

Sharpe Ratio

The current Betterment 80/20 Sharpe ratio is 1.54. A Sharpe ratio greater than 1.0 is considered acceptable.

0.002.004.001.54

The Sharpe ratio of Betterment 80/20 lies between the 25th and 75th percentiles. It indicates that the portfolio's risk-adjusted performance is in line with the majority of portfolios. This suggests a balanced approach to risk and return, which might be suitable for a broad range of investors.


Rolling 12-month Sharpe Ratio0.501.001.502.002.50OctoberNovemberDecember2024FebruaryMarch
1.54
2.44
Betterment 80/20
Benchmark (^GSPC)
Portfolio components

Dividend yield

Betterment 80/20 granted a 2.63% dividend yield in the last twelve months.


TTM20232022202120202019201820172016201520142013
Betterment 80/202.63%2.68%2.57%2.27%1.90%2.57%2.72%2.24%2.37%2.49%2.47%2.13%
VBR
Vanguard Small-Cap Value ETF
2.08%2.12%2.03%1.75%1.68%2.06%2.35%1.79%1.77%1.99%1.77%1.87%
VTV
Vanguard Value ETF
2.34%2.46%2.52%2.15%2.56%2.50%2.73%2.29%2.44%2.60%2.22%2.21%
VTI
Vanguard Total Stock Market ETF
1.34%1.44%1.66%1.21%1.42%1.78%2.04%1.71%1.92%1.98%1.76%1.74%
VOE
Vanguard Mid-Cap Value ETF
2.21%2.27%2.27%1.78%2.36%2.05%2.75%1.86%1.92%2.05%1.67%1.53%
VEA
Vanguard FTSE Developed Markets ETF
3.07%3.15%2.91%3.16%2.04%3.04%3.35%2.77%3.05%2.92%3.68%2.60%
VWO
Vanguard FTSE Emerging Markets ETF
3.48%3.52%4.11%2.63%1.91%3.23%2.88%2.30%2.52%3.26%2.86%2.73%
STIP
iShares 0-5 Year TIPS Bond ETF
2.82%2.84%6.04%4.15%1.40%2.06%2.44%1.59%0.89%0.00%0.74%0.31%
MUB
iShares National AMT-Free Muni Bond ETF
2.71%2.65%2.11%1.81%2.11%2.42%2.46%2.26%2.21%2.51%2.73%3.02%
AGG
iShares Core U.S. Aggregate Bond ETF
3.29%3.13%2.39%1.77%2.14%2.70%2.96%2.32%2.39%2.45%2.40%2.32%
BNDX
Vanguard Total International Bond ETF
4.58%4.42%1.51%3.74%1.11%3.40%3.01%2.23%1.89%1.63%1.54%0.86%
VWOB
Vanguard Emerging Markets Government Bond ETF
5.62%5.50%5.30%4.04%4.18%4.58%4.52%4.61%4.71%4.93%4.49%2.39%

Expense Ratio

The Betterment 80/20 has an expense ratio of 0.06% which is considered to be low. Below you can find the expense ratios of portfolio funds side-by-side and effortlessly compare their relative costs.


0.50%1.00%1.50%2.00%0.20%
0.50%1.00%1.50%2.00%0.08%
0.50%1.00%1.50%2.00%0.07%
0.50%1.00%1.50%2.00%0.07%
0.50%1.00%1.50%2.00%0.07%
0.50%1.00%1.50%2.00%0.07%
0.50%1.00%1.50%2.00%0.06%
0.50%1.00%1.50%2.00%0.05%
0.50%1.00%1.50%2.00%0.05%
0.50%1.00%1.50%2.00%0.04%
0.50%1.00%1.50%2.00%0.03%

Risk-Adjusted Performance

This table presents a comparison of risk-adjusted performance metrics for positions. Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.


Sharpe ratioSortino ratioOmega ratioCalmar ratioUlcer Index
^GSPC
S&P 500
2.44
Betterment 80/20
1.54
VBR
Vanguard Small-Cap Value ETF
0.58
VTV
Vanguard Value ETF
1.37
VTI
Vanguard Total Stock Market ETF
2.31
VOE
Vanguard Mid-Cap Value ETF
0.69
VEA
Vanguard FTSE Developed Markets ETF
1.07
VWO
Vanguard FTSE Emerging Markets ETF
0.50
STIP
iShares 0-5 Year TIPS Bond ETF
1.64
MUB
iShares National AMT-Free Muni Bond ETF
1.22
AGG
iShares Core U.S. Aggregate Bond ETF
0.61
BNDX
Vanguard Total International Bond ETF
1.33
VWOB
Vanguard Emerging Markets Government Bond ETF
1.14

Asset Correlations Table

The table below displays the correlation coefficients between the individual components of the portfolio, the entire portfolio, and the chosen benchmark.

STIPBNDXMUBAGGVWOVWOBVEAVBRVTIVTVVOE
STIP1.000.380.420.560.120.400.130.070.070.050.07
BNDX0.381.000.560.70-0.010.40-0.02-0.07-0.03-0.08-0.06
MUB0.420.561.000.69-0.020.36-0.02-0.09-0.05-0.10-0.07
AGG0.560.700.691.000.020.480.01-0.08-0.03-0.09-0.06
VWO0.12-0.01-0.020.021.000.470.800.620.690.640.64
VWOB0.400.400.360.480.471.000.480.360.420.360.38
VEA0.13-0.02-0.020.010.800.481.000.750.820.790.78
VBR0.07-0.07-0.09-0.080.620.360.751.000.870.880.95
VTI0.07-0.03-0.05-0.030.690.420.820.871.000.900.89
VTV0.05-0.08-0.10-0.090.640.360.790.880.901.000.94
VOE0.07-0.06-0.07-0.060.640.380.780.950.890.941.00

Drawdowns Chart

The Drawdowns chart displays portfolio losses from any high point along the way.


-15.00%-10.00%-5.00%0.00%OctoberNovemberDecember2024FebruaryMarch00
Betterment 80/20
Benchmark (^GSPC)
Portfolio components

Worst Drawdowns

The table below displays the maximum drawdowns of the Betterment 80/20. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.

The maximum drawdown for the Betterment 80/20 was 30.19%, occurring on Mar 23, 2020. Recovery took 114 trading sessions.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-30.19%Feb 13, 202027Mar 23, 2020114Sep 2, 2020141
-22.22%Nov 9, 2021233Oct 12, 2022337Feb 15, 2024570
-16.01%Jan 29, 2018229Dec 24, 2018130Jul 2, 2019359
-15.78%May 22, 2015183Feb 11, 2016126Aug 11, 2016309
-7.22%Sep 8, 201429Oct 16, 201481Feb 12, 2015110

Volatility Chart

The current Betterment 80/20 volatility is 2.80%, representing the average percentage change in the investments's value, either up or down over the past month. The chart below shows the rolling one-month volatility.


1.50%2.00%2.50%3.00%3.50%4.00%4.50%5.00%OctoberNovemberDecember2024FebruaryMarch
2.80%
3.47%
Betterment 80/20
Benchmark (^GSPC)
Portfolio components
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