Essentially the most beneficial firms of in the present day aren’t the identical bunch as 20 years in the past. With every technology comes new challengers and new classes (Hey, Huge Tech). And whereas we are able to’t actually predict the following class of high performers, innovation will seemingly come from elements of the financial system that use know-how in new and thrilling purposes, industries like:
- semiconductors
- clear vitality
- digital actuality
- synthetic intelligence
- nanotechnology
This dynamic led us to create the Progressive Know-how portfolio.
What’s the Progressive Know-how Portfolio?
The portfolio will increase your publicity to firms pioneering the know-how 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 technology of high-performing firms.
Utilizing the Core portfolio as its basis, the Progressive Know-how portfolio is constructed to generate long-term returns with a diversified, low-cost strategy, however with elevated publicity to danger. It incorporates lots of the similar investments as Core, but in addition contains an allocation to the SPDR S&P Kensho New Economies Composite ETF (Ticker: KOMP). For a extra in-depth have a look at the portfolio’s methodology, skip over to its disclosure.
How are pioneering firms chosen?
The Kensho index that KOMP tracks makes use of a particular department of synthetic intelligence known as Pure Language Processing to display screen regulatory knowledge and determine firms serving to drive the Fourth Industrial Revolution. After choosing firms throughout greater than 20 classes, every is mixed into the general index and weighted in accordance with their danger and return profiles.
Why may you select this portfolio over Betterment’s Core portfolio?
We constructed the Progressive Know-how portfolio to carry out kind of the identical as an equal inventory/bond allocation of the Core portfolio. It might, nevertheless, outperform or underperform relying on the return expertise of KOMP and the businesses this fund tracks.
So, for those who imagine the rising tech of in the present day will drive the returns of tomorrow—and are prepared to tackle some further danger to take that long-term view— it is a portfolio made with you in thoughts. Threat and early adoption can are inclined to go hand-in-hand, in any case.
Why put money into innovation with Betterment?
Progressive know-how is in our DNA. We will be the largest impartial digital monetary advisor now, however the “robo advisor” class barely existed after we opened store in 2008. For those who select to put money into the Progressive Know-how portfolio with Betterment, you not solely get our skilled, tech- ahead, portfolio administration instruments, you additionally get an funding supervisor with first-hand expertise within the discipline of first movers.
