Betterment announced that it has added thousands of mutual funds to portfolio construction menu of its RIA platform.
The company said its Betterment for Advisors RIA custody platform will now offer advisors funds from the likes of Vanguard, PIMCO, T. Rowe Price and Fidelity. In a press release, the New York City-based firm, which has more than $45 billion in AUM and serves more than 850,000 customers, promised “many more to be added in the coming weeks.”
The mutual fund launch follows Betterment’s January announcement of what it called the first commercial product that allows small businesses to automatically match their employees student loan payments with a 401 (K) contribution.
“Betterment for Advisors is laser-focused on delivering a holistic platform that includes flexible portfolio options for RIAs across retirement and wealth,” Tom Moore, head of Betterment for Advisors, said in a statement. “Adding mutual funds had long been advisor’s top request, and we are thrilled to be able to offer this capability.”
In an interview with Financial Advisor, Moore said that Betterment, founded in 2008, is focusing more on the third-party financial advisor market.
“In the last couple of years, we’ve really ramped up our effort with financial advisors,” he said. “And those are the people where we’re really hearing a strong demand for mutual funds.”
The target customers in the RIA custody space are firms that manage less than $250 million in assets, according to Moore. “Those are the underserved ones,” he said. “Those are the ones that need better services and better technology.”