Top Robo-Advisors for Ethical Investing: Making Money with a Purpose
Top Robo-Advisors for Ethical Investing
Robo-advisors have revolutionized the investment industry by providing automated and algorithm-driven financial planning services. These platforms offer a convenient and cost-effective way for investors to access personalized investment advice. For those who prioritize ethical investing, robo-advisors can be an excellent tool to align their investments with their values. In this article, we will explore some of the top robo-advisors that cater to ethical investors.
1. Wealthsimple
Wealthsimple is a leading robo-advisor that offers a range of socially responsible investment (SRI) portfolios. They focus on investing in companies that prioritize environmental sustainability, social responsibility, and good governance. Wealthsimple’s portfolios include a mix of low-cost exchange-traded funds (ETFs) that align with various ethical criteria. They also provide a Halal portfolio option for Muslim investors.
2. Betterment
Betterment is another popular robo-advisor that offers a socially responsible portfolio option. They utilize ETFs that focus on companies with high environmental, social, and governance (ESG) scores. Betterment’s SRI portfolio includes funds that avoid investing in industries such as tobacco, weapons, and fossil fuels. They also consider diversity and labor standards when selecting investments.
3. Ellevest
Ellevest is a robo-advisor specifically designed to cater to the needs of women investors. While not exclusively focused on ethical investing, Ellevest considers gender diversity and women’s leadership when constructing portfolios. They also offer impact portfolios that prioritize investing in companies that promote gender equality and women’s empowerment.
4. OpenInvest
OpenInvest is a unique robo-advisor that allows investors to customize their portfolios based on their specific values. They offer a wide range of causes to choose from, including climate change, gender equality, and human rights. OpenInvest utilizes fractional investing, allowing investors to own a fraction of a share in companies that align with their chosen causes.
5. Swell Investing
Swell Investing is a robo-advisor that focuses exclusively on impact investing. They offer thematic portfolios that target specific areas such as clean energy, green technology, and disease eradication. Swell’s portfolios consist of stocks of companies that are actively working towards positive environmental and social change.
6. Earthfolio
Earthfolio is a robo-advisor that specializes in sustainable and responsible investing. They offer a range of diversified portfolios that focus on companies with strong ESG practices. Earthfolio’s portfolios also include investments in renewable energy, clean technology, and sustainable agriculture.
7. Aspiration
Aspiration is a robo-advisor that combines ethical investing with a focus on banking products that are socially and environmentally conscious. They offer a “Redwood” portfolio that invests in companies with high sustainability ratings. Aspiration also commits to donating a portion of their earnings to charitable causes.
When considering a robo-advisor for ethical investing, it is important to evaluate their investment strategies, fees, and the specific criteria they use to select investments. Each investor has unique values, so it is crucial to choose a robo-advisor that aligns with your personal ethical preferences. With the right robo-advisor, you can invest your money in a way that makes a positive impact while still achieving your financial goals.