Betterment to Personalize Strategies for
Investors Seeking After-Tax Yield
NEW
YORK, July 18, 2024 /PRNewswire/ -- Betterment
and Goldman Sachs Asset Management are excited to announce the
launch of the Goldman Sachs Tax-Smart Bonds portfolio. This
industry-first portfolio leverages Goldman Sachs' expertise in bond
markets and Betterment's automation. The portfolio seeks to
generate after-tax yield.
Betterment to Personalize Strategies for
Investors Seeking After-Tax Yield
The Goldman Sachs Tax-Smart Bonds portfolio is designed for
Betterment clients in higher tax brackets, who want to access a
tax-smart bond strategy which is potentially lower risk than equity
investing. While high-interest cash savings products can be
beneficial for shorter-term needs, taxes can reduce yields over
time. This new portfolio offers short-duration bond exchange-traded
funds (ETFs), with holdings that Betterment will personalize for
its customers based on their tax situation.
By combining short-duration US Treasury bonds, high-quality
corporate bonds and municipal bond ETFs, Goldman Sachs designed
this innovative strategy to marry longer-term trends with current
bond market conditions, rather than maintaining static allocations
over time. This approach can adjust the strategy for events that
might create volatility such as the COVID-19 pandemic and US debt
ceiling debates. The portfolio strategy considers market conditions
and taxable equivalent yields monthly, and Betterment may make
adjustments, based on individual tax brackets, as appropriate.
Betterment then personalizes portfolio allocations for its clients'
individual tax situations to seek to generate higher after-tax
yield.
"We are thrilled to collaborate with Goldman Sachs to bring an
innovative bond portfolio to Betterment customers," said
Sarah Levy, CEO of Betterment. "We
continue to work tirelessly to provide investment products that
support our customers in their long-term wealth-building
journey."
"It is important for investors seeking to create and safeguard
long-term wealth to consider after-tax returns in their
portfolios," said Padideh Raphael,
Global Head of Third Party Wealth at Goldman Sachs Asset
Management. "This latest collaboration, combining Goldman Sachs's
investment capabilities with Betterment's innovative technology
platform and customer-first approach, will allow us to work
together on behalf of clients who seek attractive after-tax bond
yields."
For more information about the Goldman Sachs Tax-Smart Bonds
portfolio, please visit Betterment's website.
About Betterment
Betterment LLC ("Betterment") is the
largest independent digital financial advisor, using
automated technology powered by human expertise to fulfill a
singular mission: making people's lives better. With easy-to-use
saving, investing, and retirement solutions, Betterment is built to
help people optimize their money, no matter their level of
experience or how the market is doing. Launched in 2010, Betterment
helps more than 850,000 customers manage over $45
billion with curated selections of low-cost, expert-built
investing portfolios; personalized guidance; and tax-smart tools.
The company has received multiple awards for its investing app,
including Buy Side from WSJ (2024) and Bankrate (2024). Learn more
and for additional disclosure on these awards, visit
https://www.betterment.com/#award-disclosure.
About Goldman Sachs Asset Management
Goldman Sachs Asset Management is the primary investing area
within Goldman Sachs (NYSE: GS), delivering investment and advisory
services across public and private markets for the world's leading
institutions, financial advisors and individuals. The business is
driven by a focus on partnership and shared success with its
clients, seeking to deliver long-term investment performance
drawing on its global network and deep expertise across industries
and markets. Goldman Sachs Asset Management is a leading investor
across fixed income, liquidity, equity, alternatives and
multi-asset solutions. Goldman Sachs oversees more than
$2.9 trillion in assets under
supervision as of June 30, 2024.
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information provided on its services and fees, and for its
performance of its services. Information provided by Betterment is
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therein is provided or approved by Goldman Sachs.
Betterment, not Goldman Sachs, is responsible for its advisory
relationships with clients.
Assets Under Supervision includes assets under management and
other client assets for which Goldman Sachs does not have full
discretion.
Goldman Sachs does not provide legal, tax or accounting
advice. Goldman Sachs clients should obtain independent tax
advice based on their particular situation.
Betterment, not GSAM, is responsible for monitoring wash sales
and any other potential loss disallowance as a result of
disposition of a security in the portfolio.
Investment returns may vary. Not a guarantee of future
performance; investing involves risk, including loss of principal.
To review historical performance, please visit
https://www.betterment.com/goldman-sachs-tax-smart-bonds-portfolio.
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SOURCE Betterment