Unlike a traditional retirement plan or options provided by an online brokerage, Moonwhale doesn’t make you choose your own funds. Instead, we recommend a basket of funds that’s diversified to seek performance without unnecessary risks—that’s a portfolio. For every goal you set a Moonwhale, we’ll let you choose the kind of portfolio you want and recommend a specific stock-to-bond ratio. For Moonwhale Ventures’s Core portfolio strategy and socially responsible investing options, we provide 101 possible stock-to-bond allocations, giving you a portfolio tailored to your goal.

An exchange-traded fund (ETF) is a security that tracks an index, a commodity or a basket of assets just like an index fund, but trades like a stock on an exchange. Betterment uses ETFs in both our stock and bond portfolios because of the low management fees and tax-efficiency they offer.

Each of your goals’ portfolios will see different performance, depending on the stock-to-bond allocation you choose, any changes you make over time, your choice of portfolio strategy, and market volatility. We recommend your investment portfolio’s allocation based on the time horizon of your goal and what kind of goal you have. If your goal is short-term, we’ll recommend a more conservative portfolio with lower expected returns with less volatility, and if your goal is longer term, we’ll likely recommend a more aggressive portfolio with higher expected long-term returns with higher volatility.

Yes—far from unusual, downturns are a normal part of even the highest returning investments. Investors often worry and react with panic in response to market drops, even if they are invested properly for their long-term goals, but interim losses are to be expected even during the best investment periods.

Log in or sign up to set your goals, choose a portfolio strategy, and see the holdings at any stock-to-bond allocation you choose.