how would you define the success of betterment's automatic portfolio rebalancing feature?

Introduction

Defining the success of Betterment's automatic portfolio rebalancing feature requires a comprehensive approach that considers multiple stakeholders and metrics. To address this product success metrics challenge effectively, I'll follow a structured framework covering core metrics, supporting indicators, and risk factors while considering all key stakeholders.

Step 1

Product Context

Betterment's automatic portfolio rebalancing feature is a core component of their robo-advisor platform. It automatically adjusts users' investment portfolios to maintain their target asset allocation, without requiring manual intervention.

Key stakeholders include:

• Users: Seeking efficient, hands-off portfolio management
• Betterment: Aiming to differentiate their service and increase assets under management
• Regulators: Ensuring compliance with financial regulations

User flow:

1. User sets initial investment goals and risk tolerance
2. Betterment creates a diversified portfolio based on user preferences
3. As market fluctuations occur, the feature automatically buys/sells assets to maintain the target allocation

This feature aligns with Betterment's broader strategy of providing sophisticated investment management to retail investors through technology. Compared to competitors like Wealthfront or Personal Capital, Betterment's rebalancing may differ in frequency, thresholds, or tax considerations.

Product Lifecycle Stage: Mature - the feature has been around for several years and is well-established in the robo-advisor space.

Software-specific context:

• Platform: Cloud-based infrastructure for scalability
• Integration: Connects with trading systems and user accounts
• Deployment: Continuous, with regular updates to improve algorithms