Betterment Robo Advisor 20 Portfolio: ETF allocation and returns

Data Source: from January 1985 to April 2024 (~39 years)
Consolidated Returns as of 30 April 2024
Live Update: May 23 2024, 11:00AM Eastern Time Currency: USD
PORTFOLIO • LIVE PERFORMANCE (USD currency)
0.20%
1 Day
May 23 2024, 11:00AM Eastern Time
1.55%
Current Month
May 2024

The Betterment Robo Advisor 20 Portfolio is a Low Risk portfolio and can be implemented with 12 ETFs.

It's exposed for 19.9% on the Stock Market.

In the last 30 Years, the Betterment Robo Advisor 20 Portfolio obtained a 5.10% compound annual return, with a 4.14% standard deviation.

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Asset Allocation and ETFs

The Betterment Robo Advisor 20 Portfolio has the following asset allocation:

19.9% Stocks
80.1% Fixed Income
0% Commodities

The Betterment Robo Advisor 20 Portfolio can be implemented with the following ETFs:

Weight
(%)
Investment Themes (Orig.Currency) ETF
Ticker
ETF
Currency
ETF Name
6.30 Equity, U.S., Large Cap (USD)
VTI
USD Vanguard Total Stock Market
5.60 Equity, EAFE, Large Cap (USD)
EFA
USD iShares MSCI EAFE
3.70 Equity, Emerging Markets, Large Cap (USD)
EEM
USD iShares MSCI Emerging Markets
1.70 Equity, U.S., Large Cap, Value (USD)
VTV
USD Vanguard Value
1.40 Equity, U.S., Mid Cap (USD)
VOE
USD Vanguard Mid-Cap Value
1.20 Equity, U.S., Small Cap, Value (USD)
IJS
USD iShares S&P Small-Cap 600 Value
42.80 Bond, U.S., Short Term (USD)
SHY
USD iShares 1-3 Year Treasury Bond
10.70 Bond, U.S., Short Term (USD)
BSV
USD Vanguard Short-Term Bond
9.80 Bond, Developed Markets, All-Term (USD)
BNDX
USD Vanguard Total International Bond
7.60 Bond, U.S., All-Term (USD)
BND
USD Vanguard Total Bond Market
5.90 Bond, Emerging Markets, All-Term (USD)
EMB
USD iShares JP Morgan USD Em Mkts Bd
3.30 Bond, U.S., All-Term (USD)
TIP
USD iShares TIPS Bond

Most of Lazy Portfolios are made of common components (asset classes), very simple and well defined. For a more complete view, find out the most common ETFs you can use to build your portfolio.

Portfolio and ETF Returns as of Apr 30, 2024

The Betterment Robo Advisor 20 Portfolio guaranteed the following returns.

Returns are calculated in USD, assuming: May 2024 return is calculated on the hypothesis of a newly built portfolio, with the starting asset allocation.
BETTERMENT ROBO ADVISOR 20 PORTFOLIO
Consolidated returns as of 30 April 2024
Live Update: May 23 2024, 11:00AM Eastern Time
Swipe left to see all data
  Chg (%) Return (%) Return (%) as of Apr 30, 2024
  1 Day Time ET(*) May 2024 1M 6M 1Y 5Y 10Y 30Y MAX
(~39Y)
Betterment Robo Advisor 20 Portfolio -0.20 1.55 -1.48 6.24 4.27 2.15 2.54 5.10 6.59
US Inflation Adjusted return -1.79 4.32 0.88 -1.95 -0.30 2.49 3.68
Components
VTI
USD Vanguard Total Stock Market -0.25 11:00AM, May 23 2024 5.21 -4.34 20.73 21.94 12.27 11.72 10.29 11.15
EFA
USD iShares MSCI EAFE -0.02 11:00AM, May 23 2024 4.54 -3.24 16.93 8.25 6.03 4.26 4.74 7.78
EEM
USD iShares MSCI Emerging Markets -0.51 11:00AM, May 23 2024 4.90 -0.22 13.84 7.61 0.91 2.14 4.84 8.69
VTV
USD Vanguard Value -0.70 11:00AM, May 23 2024 3.07 -3.91 18.08 14.28 9.90 9.90 9.48 10.88
VOE
USD Vanguard Mid-Cap Value -0.87 10:59AM, May 23 2024 2.72 -4.40 19.60 13.05 8.38 8.38 10.60 11.82
IJS
USD iShares S&P Small-Cap 600 Value -1.27 10:59AM, May 23 2024 3.42 -6.50 15.66 6.86 6.19 7.28 10.18 11.64
SHY
USD iShares 1-3 Year Treasury Bond -0.05 10:59AM, May 23 2024 0.56 -0.44 1.99 2.09 0.85 0.86 3.07 4.31
BSV
USD Vanguard Short-Term Bond -0.12 11:00AM, May 23 2024 0.70 -0.70 2.75 1.84 1.01 1.24 3.57 4.82
BNDX
USD Vanguard Total International Bond -0.24 10:59AM, May 23 2024 0.42 -1.40 5.25 3.50 0.01 1.97 4.85 6.54
BND
USD Vanguard Total Bond Market -0.34 10:59AM, May 23 2024 1.56 -2.41 4.92 -1.40 -0.16 1.16 4.25 5.63
EMB
USD iShares JP Morgan USD Em Mkts Bd -0.57 10:59AM, May 23 2024 2.19 -2.41 10.05 6.32 -0.23 2.09 8.96 9.37
TIP
USD iShares TIPS Bond -0.34 10:59AM, May 23 2024 1.45 -1.69 3.42 -2.11 1.57 1.58 5.16 6.63
Returns over 1 year are annualized | Available data source: since Jan 1985
(*) Eastern Time (ET - America/New York)
US Inflation is updated to Apr 2024. Current inflation (annualized) is 1Y: 3.36% , 5Y: 4.18% , 10Y: 2.85% , 30Y: 2.55%

In 2023, the Betterment Robo Advisor 20 Portfolio granted a 3.18% dividend yield. If you are interested in getting periodic income, please refer to the Betterment Robo Advisor 20 Portfolio: Dividend Yield page.

Capital Growth as of Apr 30, 2024

An investment of 1$, since May 1994, now would be worth 4.45$, with a total return of 345.03% (5.10% annualized).

The Inflation Adjusted Capital now would be 2.09$, with a net total return of 109.15% (2.49% annualized).
An investment of 1$, since January 1985, now would be worth 12.30$, with a total return of 1129.96% (6.59% annualized).

The Inflation Adjusted Capital now would be 4.14$, with a net total return of 314.30% (3.68% annualized).

Portfolio Metrics as of Apr 30, 2024

Metrics of Betterment Robo Advisor 20 Portfolio, updated as of 30 April 2024.

Metrics are calculated based on monthly returns, assuming:
BETTERMENT ROBO ADVISOR 20 PORTFOLIO
Advanced Metrics
Data Source: 1 January 1985 - 30 April 2024 (~39 years)
Swipe left to see all data
Metrics as of Apr 30, 2024
1M 3M 6M 1Y 3Y 5Y 10Y 20Y 30Y MAX
(~39Y)
Investment Return (%) -1.48 0.11 6.24 4.27 -0.35 2.15 2.54 3.88 5.10 6.59
Infl. Adjusted Return (%) details -1.79 -1.02 4.32 0.88 -5.54 -1.95 -0.30 1.24 2.49 3.68
US Inflation (%) 0.31 1.14 1.85 3.36 5.50 4.18 2.85 2.60 2.55 2.81
Returns / Inflation rates over 1 year are annualized.
DRAWDOWN
Inflation Adjusted:
Inflation Adjusted:
1Y 3Y 5Y 10Y 20Y 30Y MAX
Deepest Drawdown Depth (%) -3.03 -12.16 -12.16 -12.16 -12.16 -12.16 -12.16
Start to Recovery (# months) details 4 32* 32* 32* 32* 32* 32*
Start (yyyy mm) 2023 08 2021 09 2021 09 2021 09 2021 09 2021 09 2021 09
Start to Bottom (# months) 3 13 13 13 13 13 13
Bottom (yyyy mm) 2023 10 2022 09 2022 09 2022 09 2022 09 2022 09 2022 09
Bottom to End (# months) 1 19 19 19 19 19 19
End (yyyy mm) 2023 11 - - - - - -
Longest Drawdown Depth (%)
same as
deepest

same as
deepest

same as
deepest

same as
deepest

same as
deepest

same as
deepest

same as
deepest
Start to Recovery (# months) details
Start (yyyy mm) 2023 08 2021 09 2021 09 2021 09 2021 09 2021 09 2021 09
Start to Bottom (# months) 3 13 13 13 13 13 13
Bottom (yyyy mm) 2023 10 2022 09 2022 09 2022 09 2022 09 2022 09 2022 09
Bottom to End (# months) 1 19 19 19 19 19 19
End (yyyy mm) 2023 11 - - - - - -
Longest negative period (# months) details 6 36* 45 45 45 45 45
Period Start (yyyy mm) 2023 05 2021 05 2020 02 2020 02 2020 02 2020 02 2020 02
Period End (yyyy mm) 2023 10 2024 04 2023 10 2023 10 2023 10 2023 10 2023 10
Annualized Return (%) -3.68 -0.35 -0.03 -0.03 -0.03 -0.03 -0.03
Drawdowns / Negative periods marked with * are in progress
Deepest Drawdown Depth (%) -3.95 -19.72 -20.01 -20.01 -20.01 -20.01 -20.01
Start to Recovery (# months) details 5 36* 40* 40* 40* 40* 40*
Start (yyyy mm) 2023 08 2021 05 2021 01 2021 01 2021 01 2021 01 2021 01
Start to Bottom (# months) 3 17 21 21 21 21 21
Bottom (yyyy mm) 2023 10 2022 09 2022 09 2022 09 2022 09 2022 09 2022 09
Bottom to End (# months) 2 19 19 19 19 19 19
End (yyyy mm) 2023 12 - - - - - -
Longest Drawdown Depth (%)
same as
deepest

same as
deepest

same as
deepest

same as
deepest

same as
deepest

same as
deepest

same as
deepest
Start to Recovery (# months) details
Start (yyyy mm) 2023 08 2021 05 2021 01 2021 01 2021 01 2021 01 2021 01
Start to Bottom (# months) 3 17 21 21 21 21 21
Bottom (yyyy mm) 2023 10 2022 09 2022 09 2022 09 2022 09 2022 09 2022 09
Bottom to End (# months) 2 19 19 19 19 19 19
End (yyyy mm) 2023 12 - - - - - -
Longest negative period (# months) details 7 36* 60* 120* 157 157 157
Period Start (yyyy mm) 2023 05 2021 05 2019 05 2014 05 2010 10 2010 10 2010 10
Period End (yyyy mm) 2023 11 2024 04 2024 04 2024 04 2023 10 2023 10 2023 10
Annualized Return (%) -0.16 -5.54 -1.95 -0.30 -0.06 -0.06 -0.06
Drawdowns / Negative periods marked with * are in progress
RISK INDICATORS
1Y 3Y 5Y 10Y 20Y 30Y MAX
Standard Deviation (%) 5.33 5.88 5.38 4.24 4.18 4.14 4.48
Sharpe Ratio -0.19 -0.51 0.04 0.30 0.60 0.68 0.58
Sortino Ratio -0.30 -0.73 0.06 0.41 0.79 0.90 0.79
Ulcer Index 1.19 5.97 4.70 3.41 2.80 2.33 2.17
Ratio: Return / Standard Deviation 0.80 -0.06 0.40 0.60 0.93 1.23 1.47
Ratio: Return / Deepest Drawdown 1.41 -0.03 0.18 0.21 0.32 0.42 0.54
% Positive Months details 50% 52% 61% 65% 69% 70% 71%
Positive Months 6 19 37 78 167 255 338
Negative Months 6 17 23 42 73 105 134
LONG TERM RETURNS
Inflation Adjusted:
Inflation Adjusted:
1Y 3Y 5Y 10Y 20Y 30Y MAX
Best 10 Years Return (%) - Annualized 2.54 5.30 8.22 10.73
Worst 10 Years Return (%) - Annualized 2.12 2.12 2.12
Best 10 Years Return (%) - Annualized -0.30 3.04 5.61 6.90
Worst 10 Years Return (%) - Annualized -0.65 -0.65 -0.65
ROLLING PERIODS
Inflation Adjusted:
Inflation Adjusted:
1Y 3Y 5Y 10Y 20Y 30Y MAX
Over the latest 30Y
Best Rolling Return (%) - Annualized 17.13 11.12 9.76 8.22 6.50 5.10
Worst Rolling Return (%) - Annualized -11.04 -0.68 0.98 2.12 3.71
% Positive Periods 89% 97% 100% 100% 100% 100%
SWR - Safe Withdrawal Rate (%) - 100% Success - Annualized 90.23 29.23 19.47 10.39 6.09 5.68
PWR - Perpetual Withdrawal Rate (%) - 100% Success - Annualized - - - - 1.24 2.96
WR calculated based on initial capital | Monthly withdrawals adjusted for inflation | Credits: BestRetirementPortfolio.com
Best Rolling Return (%) - Annualized 14.66 8.60 7.22 5.61 4.12 2.49
Worst Rolling Return (%) - Annualized -17.78 -5.93 -2.68 -0.65 1.10
% Positive Periods 82% 91% 91% 91% 100% 100%
SWR - Safe Withdrawal Rate (%) - 100% Success - Annualized 90.23 29.23 19.47 10.39 6.09 5.68
PWR - Perpetual Withdrawal Rate (%) - 100% Success - Annualized - - - - 1.24 2.96
WR calculated based on initial capital | Monthly withdrawals adjusted for inflation | Credits: BestRetirementPortfolio.com
Over all the available data source (Jan 1985 - Apr 2024)
Best Rolling Return (%) - Annualized 25.95 14.58 13.11 10.73 9.47 7.87
Worst Rolling Return (%) - Annualized -11.04 -0.68 0.98 2.12 3.71 4.85
% Positive Periods 91% 98% 100% 100% 100% 100%
SWR - Safe Withdrawal Rate (%) - 100% Success - Annualized 90.23 29.23 19.47 10.39 6.09 5.38
PWR - Perpetual Withdrawal Rate (%) - 100% Success - Annualized - - - - 1.24 2.69
WR calculated based on initial capital | Monthly withdrawals adjusted for inflation | Credits: BestRetirementPortfolio.com
Best Rolling Return (%) - Annualized 23.29 11.18 9.11 6.90 6.25 5.02
Worst Rolling Return (%) - Annualized -17.78 -5.93 -2.68 -0.65 1.10 2.27
% Positive Periods 82% 93% 93% 94% 100% 100%
SWR - Safe Withdrawal Rate (%) - 100% Success - Annualized 90.23 29.23 19.47 10.39 6.09 5.38
PWR - Perpetual Withdrawal Rate (%) - 100% Success - Annualized - - - - 1.24 2.69
WR calculated based on initial capital | Monthly withdrawals adjusted for inflation | Credits: BestRetirementPortfolio.com
Terms and Definitions
  • Annualized Portfolio Return: it's the annualized geometric mean return of the portfolio.
  • Deepest/Longest Drawdown: a drawdown refers to the decline in value from a relative peak value to a relative trough. The deepest (or maximum) drawdown is the maximum observed loss from a peak to a trough of a portfolio before a new peak is attained. The longest drawdown is the period observed from a peak to the subsequent peak with the greatest duration.
  • Longest negative period: it's the maximum period for which an overall negative return has been observed.
  • Standard Deviation: it's a measure of the dispersion of returns around the mean.
  • Sharpe Ratio: it's a measure of risk-adjusted performance of the portfolio. It's calculated by dividing the excess return of the portfolio over the risk-free rate by the portfolio standard deviation. The risk-free rate here considered is the 1-3 Mth T-Bill return.
  • Sortino Ratio: another measure of risk-adjusted performance of the portfolio. It's a modification of the Sharpe Ratio (same formula but the denominator is the portfolio downside standard deviation).
  • Ulcer Index: it's a measure of downside risk that quantifies the depth and duration of drawdowns in an investment portfolio.
  • Best/Worst 10Y returns: the best and the worst 10-year return over a time frame.
  • Rolling Returns: N-year returns over a time frame, calculated over all the available data source (best, worst, % of positive returns). Each rolling period, longer than the longest negative period, yielded a non-negative minimum return.
  • Safe Withdrawal Rate (SWR): it's the percentage of the initial portfolio balance that can be withdrawn at the beginning of each month with inflation adjustment, without the portfolio running out of money in any case (money amount withdrawal).
    For instance: Your initial invested capital is 100.000$; withdrawal rate (annualized) is 4%. This means that, in the first month, you will withdraw 100.000 * 4% * 1/12 = 333.33$. The second month, you’ll withdraw 333.33$ plus the inflation monthly rate. You’ll continue adjusting your withdraw monthly for inflation.
  • Perpetual Withdrawal Rate (PWR): it's the percentage of the initial portfolio balance that can be withdrawn at the beginning of each month with inflation adjustment, preserving the original invested capital, adjusted for inflation too.

Portfolio Components Correlation

Correlation measures to what degree the returns of the two assets move in relation to each other.

Correlation coefficient is a numerical value between -1 and +1. If one variable goes up by a certain amount, the correlation coefficient indicates which way the other variable moves and by how much.
Asset correlations are calculated based on monthly returns.
COMPONENTS MONTHLY CORRELATIONS
Monthly correlations as of 30 April 2024
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If you want to learn more about historical correlations, you can find out here how the main asset class are correlated to each other.

Drawdowns

A drawdown refers to the decline in value from a relative peak value to a relative trough. A maximum drawdown is the maximum observed loss from a peak to a trough of a portfolio before a new peak is attained.

BETTERMENT ROBO ADVISOR 20 PORTFOLIO
Drawdown periods
Drawdown periods - Inflation Adjusted
Data Source: 1 May 1994 - 30 April 2024 (30 Years)
Data Source: 1 January 1985 - 30 April 2024 (~39 years)
Inflation Adjusted:
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Rolling Returns

( more details)

A rolling return is a measure of investment performance that calculates the return of an investment over a set period of time, with the starting date rolling forward. This approach can provide a more accurate representation of the investment's historical performance and helps investors to evaluate the investment's consistency over time.

BETTERMENT ROBO ADVISOR 20 PORTFOLIO
Annualized Rolling Returns
Annualized Rolling Returns - Inflation Adjusted
Data Source: 1 May 1994 - 30 April 2024 (30 Years)
Data Source: 1 January 1985 - 30 April 2024 (~39 years)
Inflation Adjusted:

If you need a deeper detail about rolling returns, please refer to the Betterment Robo Advisor 20 Portfolio: Rolling Returns page.

Seasonality

In which months is it better to invest in Betterment Robo Advisor 20 Portfolio?

Both the Average Return and the Gain Frequency (Win %) are useful to get an idea of what happened in the past.
For further information about the seasonality, check the Asset Class Seasonality page.
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Monthly Returns

This section provides a visual/tabular representation of the performance variability in the Betterment Robo Advisor 20 Portfolio over time. It illustrates the distribution of monthly returns, showcasing the range and frequency of positive and negative returns.

BETTERMENT ROBO ADVISOR 20 PORTFOLIO
Monthly Returns Distribution
Data Source: 1 May 1994 - 30 April 2024 (30 Years)
Data Source: 1 January 1985 - 30 April 2024 (~39 years)
255 Positive Months (71%) - 105 Negative Months (29%)
338 Positive Months (72%) - 134 Negative Months (28%)
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(Scroll down to see all data)
Investment Returns, up to December 2013, have been derived using the historical series of equivalent ETFs / Assets, instead of the actual ETFs of the portfolio.
You can find additional information on extended Data Sources here.

In particular, the series derived from equivalent datasets are:
  • VTI - Vanguard Total Stock Market (VTI), up to December 2001
  • EFA - iShares MSCI EAFE (EFA), up to December 2001
  • EEM - iShares MSCI Emerging Markets (EEM), up to December 2003
  • VTV - Vanguard Value (VTV), up to December 2004
  • VOE - Vanguard Mid-Cap Value (VOE), up to December 2006
  • IJS - iShares S&P Small-Cap 600 Value (IJS), up to December 2000
  • SHY - iShares 1-3 Year Treasury Bond (SHY), up to December 2002
  • BSV - Vanguard Short-Term Bond (BSV), up to December 2007
  • BNDX - Vanguard Total International Bond (BNDX), up to December 2013
  • BND - Vanguard Total Bond Market (BND), up to December 2007
  • EMB - iShares JP Morgan USD Em Mkts Bd (EMB), up to December 2007
  • TIP - iShares TIPS Bond (TIP), up to December 2003

Portfolio efficiency

The following portfolios granted a higher return over 30 Years and a less severe drawdown at the same time.

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In the following table, you can compare the current portfolio with a list of famous portfolios. Metrics are calculated over the last 30 Years.

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