Ethical Investing: Top 5 Robo-Advisors to Consider
# Top Robo-Advisors for Ethical Investing
In recent years, ethical investing has gained significant traction among investors who are looking not just to grow their wealth but also to make a positive impact on society and the environment. Ethical investing often focuses on supporting companies that adhere to social, environmental, and governance (ESG) criteria, avoiding industries like fossil fuels, tobacco, and firearms, and promoting businesses that contribute to a sustainable and just world.
Robo-advisors, with their automated investing platforms, have made it easier and more accessible for everyday investors to put their money into ethical investments. Here, we explore some of the top robo-advisors that are leading the way in ethical investing.
1. Betterment
Betterment, one of the pioneers in the robo-advising space, offers a socially responsible investing portfolio that is designed to achieve a lower carbon impact and support issues like gender diversity and affordable housing. Betterment’s SRI portfolios aim to maintain the diversified, low-fee approach synonymous with the platform, while also focusing investments towards ETFs that meet rigorous social and environmental criteria.
Features:
– Broad diversification across global stocks.
– Automated rebalancing and tax-loss harvesting.
– SRI options that prioritize environmental, social, and governance standards.
2. Wealthfront
Wealthfront makes it easy for investors to put their money into socially responsible companies without compromising on the sophisticated investment strategies the platform is known for. They offer a range of socially responsible investment options, including funds that focus on reducing carbon emissions and promoting sustainable energy.
Features:
– Personalized investment plans based on your risk tolerance and time horizon.
– Daily tax-loss harvesting.
– Portfolio reviews to ensure your investments remain aligned with your values.
3. Ellevest
Ellevest stands out for its focus on promoting gender equality in its investment choices. While it offers portfolios that are tailored specifically to women’s financial goals and life scenarios, it is open to all investors looking to support women in leadership and companies with strong social and environmental impacts.
Features:
– No minimum investment, making it accessible to a wide range of investors.
– Customizable portfolios based on specific ethical preferences.
– Impact portfolios that specifically target gender equality and ethical principles.
4. Wealthsimple
Wealthsimple provides an SRI portfolio that includes funds focused on low carbon, cleantech, and companies with high ESG scores. It’s a great choice for investors who want to make sure their money is working towards a better future, as well as seeking returns.
Features:
– Automated investing and rebalancing.
– No account minimum.
– SRI portfolios that are carefully screened for social and environmental impact.
5. Personal Capital
While not exclusively a robo-advisor, Personal Capital offers wealth management services that include environmentally and socially responsible investing options. This makes Personal Capital an excellent choice for investors who want a more hands-on approach with their ethical investments.
Features:
– Dedicated financial advisor for accounts over $200,000.
– Socially responsible investment options across ETFs and mutual funds.
– Tools for retirement planning, budgeting, and investment checking.
Conclusion
For investors looking to align their investment choices with their ethical beliefs, these robo-advisors offer compelling options. By leveraging technology and data, they provide accessible platforms for investing in companies and funds that prioritize environmental stewardship, social responsibility, and good governance. As ethical investing continues to grow, expect to see more innovations and offerings from both new and established players in the robo-advising space.