Why is my Acorns account not performing the same as the stock market?

Article author
Carlee S.
  • Updated

When we say “the market,” we’re often referring to stock market indexes like the S&P 500 or the Dow Jones Industrial Average. 

  • The S&P 500 tracks the performance of the 500 largest U.S. companies
  • And the Dow Jones Industrial Average (DJIA) tracks the performance of 30 large U.S. companies. 

So, when the prices of these indexes change, investors see it as a sign of how the overall stock market is doing.

Here's the thing: "the market" might refer to just one or two widely-followed indexes. But Acorns spreads your investments across lots of different types of stock and bond ETFs — and not just one S&P 500 or DJIA ETF.  

Some portfolios may have exposure to small-cap, large-cap and international ETFs. And others may hold a mix of stock and bond ETFs. In other words, Acorns creates a diversified portfolio that fits your goals and objectives — so your investments don’t move in the same direction at the same time. 

That's why your performance might not mirror “the market.” You’re holding other types of assets that may be zigging when “the market” is zagging. 

But don't forget, you can always check your investor profile page to see what exactly you hold, and if you want to make any changes. This way, your portfolio will always match your plans and goals!

For more information, see our Learn articles:

  1. What is a Diversified Portfolio?
  2. Investment Portfolio: What it is & How to Build One

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