Betterment, one of the most widely used AI-powered robo-advisor platforms in the U.S., announced the launch of Custom Portfolios on August 17, 2026 — a product that lets investors hand-pick individual securities while keeping the automated tax efficiency and rebalancing that robo-advisors are known for.
What Betterment Is Launching
The new feature gives customers access to more than 5,500 individual stocks and ETFs. As investors build their portfolio security-by-security, Betterment’s AI surfaces real-time analysis on diversification, sector exposure, and geographic concentration — highlighting any imbalances as they appear. According to the official announcement via Yahoo Finance / Business Wire, users can either start from scratch or personalize one of Betterment’s expert-built portfolio templates. Once the portfolio is set, the platform’s automation handles rebalancing, dividend reinvestment, and tax-loss harvesting — the same 0.25% annual fee applies. The company manages over $70 billion in assets for more than 1 million customers, and CEO Sarah Levy noted that investors “no longer have to choose between DIY investing and full-service management.” Custom Portfolios launched for individual taxable accounts, with IRAs and joint accounts coming soon.
What This Means for AI-Powered Investing
This launch marks a meaningful shift in how robo-advisors compete. Traditional automated platforms pick allocations for you; Betterment is now layering AI-driven analysis on top of investor-led choices — bridging the gap between self-directed brokerage accounts and fully managed services. The AI insights stop short of making recommendations (they surface data, not advice), which keeps the product on the right side of regulatory expectations around automated investment tools. For retail investors who want more transparency and control without giving up tax optimization, Custom Portfolios represents a practical middle ground that other robo-advisors have not yet matched at scale.