# Top Robo-Advisors for Ethical Investing
Ethical investing has gained significant traction over the past few years, reflecting growing societal concerns about environmental, social, and governance (ESG) issues. With the surge in demand, the fintech market has responded, and now numerous robo-advisors offer services catering to those looking to invest responsibly. These automated platforms use algorithms to manage your investments, with many offering portfolios focused on ESG criteria. Here are some of the top robo-advisors for ethical investing.
Betterment
Betterment, one of the pioneers in the robo-advising space, offers socially responsible investing portfolios aimed at generating competitive returns while adhering to high ESG standards. Investors can choose from three primary ESG options: Broad Impact, Climate Impact, and Social Impact. Betterment’s approach includes carefully vetting ETFs for ESG criteria and maintaining a low expense ratio, making it an attractive option for both novice and seasoned investors looking to make a positive impact with their investments.
Wealthsimple
Wealthsimple stands out for its commitment to ethical investing. This Canadian-based robo-advisor offers a Socially Responsible Investment (SRI) portfolio that emphasizes low carbon, cleantech, affordable housing, and diversity. Moreover, Wealthsimple continuously monitors its investments to ensure they adhere to its SRI criteria, adjusting its portfolio as necessary to reflect the most current ESG standards. This dedication makes Wealthsimple a top choice for investors prioritizing ethical and sustainable investing.
Ellevest
Ellevest targets its services towards women but is inclusive to all investors. It offers Impact Portfolios designed to promote gender diversity, support community businesses, and fund companies working on innovative solutions for climate change. Ellevest’s unique approach not only focuses on financial returns but also on creating societal benefits, making it an empowering platform for investors who want to make a difference with their money.
Wealthfront
Wealthfront provides an option for investors to tailor their portfolios to include socially responsible investments. Their platform allows for the exclusion of companies and sectors that do not meet personal ethical standards, such as fossil fuels or tobacco, while highlighting ETFs focused on sustainability and renewable energy. Wealthfront’s customizable features make it a versatile choice for investors who want more control over the ethical dimensions of their investment portfolio.
M1 Finance
M1 Finance differs from traditional robo-advisors by offering an innovative “pie” investment model that allows users to create custom portfolios. Among these, investors have the option to build or select pies that focus on ESG principles, giving them the flexibility to invest in companies and ETFs that align with their values. M1 Finance blends the automations of robo-advisory with the customization of traditional investing, catering to ethical investors who prefer a hands-on approach.
Concluding Thoughts
Ethical investing is not just a trend but a shifting paradigm in the financial world. As investors become more conscious of the impacts their money can have, robo-advisors are evolving to meet this demand with innovative solutions. Whether you’re new to investing or looking to align your portfolio with your values, these robo-advisors offer accessible, impactful ways to participate in ethical and socially responsible investing. Remember, effective ethical investing involves not only selecting the right platform but also continuous engagement and awareness of where and how your money is being invested.
