Cost Comparison of Betterment Portfolio ETFs to Averages

Betterment considers expense ratios, tracking difference, liquidity (both bid-ask spread and average daily volumes), and tax burden when selecting ETFs. We combine them into a Total Cost of ownership and minimize this cost for you.

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Primary ticker
Alternate ticker
Industry average

Asset type:

Asset Class ETF Index Expense Ratio Bid-Ask Spread Median Daily Volume (in millions) Total Cost
Short-Term Treasuries SHV Barclays U.S. Short Treasury Bond 0.15 0.01 53.05 0.15
Industry Avg. 0.11 0.02 39.62 0.12
Inflation Protected Bonds VTIP Barclays US 0-5 Year TIPS 0.07 0.02 11.99 0.09
Industry Avg. 0.13 0.05 5.12 0.30
US Municipal Bonds MUB S&P National AMT-Free Municipal Bond 0.25 0.01 40.53 0.26
TFI Barclays Municipal Managed Money 0.23 0.04 10.18 0.31
Industry Avg. 0.21 0.04 16.89 0.31
US High Quality Bonds AGG Bloomberg Barclays US Aggregate Bond Index 0.05 0.01 223.94 0.05
Industry Avg. 0.14 0.06 42.42 0.26
International Developed Bonds BNDX Barclays GA ex-USD FlAj RIC CpIxHgd 0.12 0.02 31.21 0.15
Industry Avg. 0.58 0.05 14.47 0.71
Emerging Market Bonds EMB J.P. Morgan EMBI Global Core 0.39 0.01 154.41 0.40
VWOB Barclays USD EmergMkt GovRIC Cap 0.32 0.06 4.67 0.38
Industry Avg. 0.44 0.06 36.43 0.61
Asset Class ETF Index Expense Ratio Bid-Ask Spread Median Daily Volume (in millions) Total Cost
US Total Stock Market VTI CRSP US Total Market 0.04 0.01 212.10 0.04
SCHB Dow Jones U.S. Broad Stock Market 0.03 0.03 21.38 0.10
Industry Avg. 0.10 0.02 60.29 0.15
US Large-Cap Value Stocks VTV CRSP US Large Cap Value 0.06 0.01 101.12 0.06
IVE S&P 500(R) Value 0.18 0.01 49.52 0.19
Industry Avg. 0.24 0.03 164.91 0.31
US Mid-Cap Value Stocks VOE CRSP US Mid Cap Value 0.07 0.04 18.49 0.09
IWS Russell MidCap Value 0.25 0.03 19.00 0.28
Industry Avg. 0.43 0.05 22.82 0.52
US Small-Cap Value Stocks VBR CRSP US Small Cap Value 0.07 0.06 33.24 0.08
IWN Russell 2000 Value 0.24 0.04 76.64 0.23
Industry Avg. 0.28 0.07 60.16 0.38
International Developed Stocks VEA FTSE Developed ex North America 0.07 0.02 255.48 0.01
SCHF FTSE Developed ex-US 0.06 0.03 38.84 0.11
Industry Avg. 0.36 0.03 105.20 0.41
Emerging Market Stocks VWO FTSE Emerging w/ China A shares 0.14 0.02 370.85 0.12
IEMG MSCI Emerging Markets Investable Market 0.14 0.02 315.09 0.12
Industry Avg. 0.62 0.05 169.01 0.69
Asset Class ETF Index Expense Ratio Bid-Ask Spread Median Daily Volume (in millions) Total Cost
Short-Term Treasuries SHV Barclays U.S. Short Treasury Bond 0.15 0.01 53.05 0.15
Industry Avg. 0.11 0.02 39.62 0.12
Inflation Protected Bonds VTIP Barclays US 0-5 Year TIPS 0.07 0.02 11.99 0.09
Industry Avg. 0.13 0.05 5.12 0.30
US High Quality Bonds AGG Bloomberg Barclays US Aggregate Bond Index 0.05 0.01 223.94 0.05
Industry Avg. 0.14 0.06 42.42 0.26
International Developed Bonds BNDX Barclays GA ex-USD FlAj RIC CpIxHgd 0.12 0.02 31.21 0.15
Industry Avg. 0.58 0.05 14.47 0.71
Emerging Market Bonds EMB J.P. Morgan EMBI Global Core 0.39 0.01 154.41 0.40
PCY DB Emerging Market USD Liquid Balanced 0.50 0.03 31.12 0.55
Industry Avg. 0.44 0.06 36.43 0.61
Asset Class ETF Index Expense Ratio Bid-Ask Spread Median Daily Volume (in millions) Total Cost
US Total Stock Market VTI CRSP US Total Market 0.04 0.01 212.10 0.04
ITOT S&P Composite 1500 0.03 0.03 32.10 0.09
Industry Avg. 0.10 0.02 60.29 0.15
US Large-Cap Value Stocks VTV CRSP US Large Cap Value 0.06 0.01 101.12 0.06
SCHV Dow Jones U.S. Large-Cap Value Total Stock Market 0.04 0.03 8.58 0.20
Industry Avg. 0.24 0.03 164.91 0.31
US Mid-Cap Value Stocks VOE CRSP US Mid Cap Value 0.07 0.04 18.49 0.09
IJJ S&P MidCap 400(R) Value 0.25 0.05 18.49 0.32
Industry Avg. 0.43 0.05 22.82 0.52
US Small-Cap Value Stocks VBR CRSP US Small Cap Value 0.07 0.06 33.24 0.08
IJS S&P SmallCap 600(R) Value 0.25 0.08 13.53 0.31
Industry Avg. 0.28 0.07 60.16 0.38
International Developed Stocks VEA FTSE Developed ex North America 0.07 0.02 255.48 0.01
IEFA MSCI EAFE IMI 0.08 0.02 200.08 0.06
Industry Avg. 0.36 0.03 105.20 0.41
Emerging Market Stocks VWO FTSE Emerging w/ China A shares 0.14 0.02 370.85 0.12
SCHE FTSE Emerging 0.13 0.04 18.01 0.19
Industry Avg. 0.62 0.05 169.01 0.69
The cost information comes from etf.com and each ETF's respective provider. The costs are updated on a quarterly basis when we run our quarterly security selection. Industry average expense ratios, bid-ask spread, and median daily volume are simple averages of all of the ETFs that belong to each asset class with sufficient investable liquidity. The total cost is calculated as the cost-to-hold, which includes expense ratio and tracking difference, plus a calibrated portion of the cost-to-trade, which includes bid-ask spread and daily volume, to account for Betterment platform portfolio management and trading activity. Last updated on October, 10th 2017.