Top Robo-Advisors for Ethical Investing: Making an Impact with Automated Investing
Top Robo-Advisors for Ethical Investing
Introduction
In recent years, ethical investing has gained significant popularity as more and more investors seek to align their financial goals with their values. Robo-advisors, with their automated investment platforms, have emerged as a convenient and accessible option for individuals interested in ethical investing. These online investment platforms utilize algorithms to create and manage portfolios that prioritize socially responsible investments. Here, we present a list of the top robo-advisors for ethical investing, offering investors an opportunity to make a positive impact while growing their wealth.
1. Betterment
Betterment is a well-known robo-advisor that offers a socially responsible investing (SRI) portfolio option. Their SRI portfolio consists of low-cost exchange-traded funds (ETFs) that focus on companies with strong environmental, social, and governance (ESG) practices. Betterment also provides a detailed breakdown of the specific ESG criteria used to select investments, allowing investors to have full transparency.
2. Wealthsimple
Wealthsimple is another robo-advisor that places a strong emphasis on ethical investing. They offer a Socially Responsible Investing portfolio that includes companies involved in renewable energy, clean technology, and other environmentally friendly industries. Wealthsimple also considers ESG factors when selecting securities for their portfolios, ensuring that investors’ money is allocated to companies with responsible business practices.
3. Ellevest
Ellevest is a robo-advisor specifically designed to cater to the needs of women investors. They offer a Gender-Lens Investing portfolio, which focuses on investing in companies that promote gender diversity and women’s empowerment. Ellevest considers factors such as women in leadership, equal pay, and work-life balance when constructing their portfolios. This robo-advisor not only provides a platform for ethical investing but also aims to address the gender investing gap.
4. OpenInvest
OpenInvest is a unique robo-advisor that allows investors to customize their portfolios based on their specific values and causes. They offer a wide range of causes to choose from, including climate change, gender equality, and human rights. OpenInvest utilizes fractional shares to build portfolios that align with investors’ chosen causes. This platform also provides real-time impact reporting, allowing investors to track the positive changes their investments are making.
5. Earthfolio
Earthfolio is a robo-advisor that focuses exclusively on sustainable and impact investing. They offer portfolios that prioritize companies engaged in renewable energy, clean technology, and sustainable agriculture. Earthfolio also screens out investments associated with fossil fuels, weapons, and other controversial industries. Additionally, they provide investors with impact reports, detailing the environmental and social benefits generated by their portfolios.
Conclusion
Robo-advisors have revolutionized the way individuals invest, and they are now making it easier for investors to align their portfolios with their ethical values. The top robo-advisors for ethical investing mentioned above provide a range of options, from general socially responsible investing to customized portfolios based on specific causes. By choosing one of these robo-advisors, investors can grow their wealth while making a positive impact on society and the planet.