Betterment was named one of the Finovate Fall 2010 Best in Shows and they’re looking to make investing as simple as possible. The basic idea is that you open an account at Betterment (they are a registered broker-dealer), deposit funds, pick an allocation, and then go about your day. They offer a taxable investment account (no IRA’s yet) and two investing options.
With Betterment, you just pick how much of your investment you want in equities (Stock Market) and how much you want in Treasury bonds (TIPs). Within each category, they divide it up into a variety of ETFs so that you get diversification in that category. For Treasury bonds, you get iShares Barclasy TIPS Bond Fund (TIP). For the Stock Market, you get a mix of IWS, IWD, VTI, IVE, DIA and IWN.