But i wanted a passive income portfolio with dividends betterment cant give me that can they?
8/24/2024 09:15am
Betterment does not currently offer direct indexing, which is where Betterment falls short compared to competitor Wealthfront, where direct indexing is available for free on accounts of $100,000 or more. However, Betterment does offer a range of portfolio options that can provide dividend income:
1. **Automated Portfolio Options**: Betterment's automated portfolios include options like the Sustainable Growth and Tax-Efficient Growth, which have the potential to generate dividend income from the stocks and ETFs within the portfolio.
2. **Custom Portfolio Options**: If you prefer a more hands-on approach, you can create a custom portfolio on Betterment and select stocks or funds that offer dividend income. Betterment's platform allows you to easily adjust your asset allocation based on your investment goals and risk tolerance.
3. **Dividend-Focused Portfolios**: Betterment offers a Socially Responsible Investing (SRI) portfolio, which includes companies that prioritize dividends and other financial metrics. This portfolio can provide exposure to dividend-paying stocks while aligning with your values.
While Betterment may not offer direct indexing, its portfolio options and customizability features can still provide a passive income portfolio with dividends. It's important to review the fees, investment strategies, and performance history of each portfolio to determine the best fit for your needs and budget.