Introduction
In the age of technology, robo-advisors have become a popular choice for investors seeking a hands-off approach to managing their portfolios. These automated platforms use algorithms to invest, rebalance, and manage an investment portfolio based on the investor’s risk tolerance and financial goals. Recently, there has been a surge in interest for ethical investing, also known as socially responsible investing (SRI), which involves investing in companies that align with the investor’s personal values and societal goals. For those interested in ethical investing, there are several robo-advisors that stand out.
Top Robo-Advisors for Ethical Investing
Betterment
Betterment is a robo-advisor that offers a socially responsible investing (SRI) portfolio. This platform allows investors to focus on companies that foster environmental sustainability, social responsibility, and good governance. Betterment’s SRI portfolio includes exchange-traded funds (ETFs) that meet these criteria, allowing investors to align their money with their values.
Wealthsimple
Wealthsimple is a robo-advisor that offers a socially responsible investing (SRI) portfolio and a Halal investing portfolio, both of which cater to ethical investors. The SRI portfolio focuses on low carbon, gender diversity, and affordable housing, while the Halal portfolio is designed for investors who want to comply with Islamic law, which prohibits investments in certain industries and financial practices.
Ellevest
Ellevest is a robo-advisor designed specifically for women and offers a unique approach to ethical investing. The platform includes an Impact Portfolio that invests in companies with women leaders and policies that advance gender equality. In addition, it also invests in companies that promote environmental sustainability.
M1 Finance
M1 Finance is a robo-advisor that offers a socially responsible investing (SRI) portfolio known as the Responsible Investing portfolio. This portfolio focuses on companies with strong environmental, social, and governance (ESG) practices. M1 Finance allows investors to customize their portfolios, which means you can add or remove companies based on your personal values.
Conclusion
Robo-advisors provide an accessible and affordable way for investors to align their money with their values. The platforms mentioned above are just a few examples of robo-advisors that offer ethical investing options. As with any investment, it’s important to do your own research and consider your financial goals and risk tolerance before investing. With the right robo-advisor, you can make an impact with your investments while also working towards your financial goals.
