Pick These Top 4 Robo-Advisors for Socially Responsible Investing
Get your robo-advisors to support your socially responsible investing (SRI) cause! It is a rising trend these days, investing in companies that are involved with profitable and socially desirable products and services. These businesses are sprinkled on all areas such as clean energy, affordable housing, improved human health, and sustainability. All you need to do to start conscience-based investing is to get your robo-advisor on board! Below are five of the best in the industry.
- Swell Investing
A dedicated SRI platform, Swell Investing uses individual stocks to grow your money. You get a choice of six portfolios and each is comprised of dozens of stocks that represent different SRI segments like green tech, renewable energy, zero waste, clean water, healthy living, and disease eradication. The minimum investment is $50.
- Personal Capital
Personal Capital offers SRI under Environmental, Social and Governance (ESG) considerations. The company partners with Sustainalytics, a global leader with more than 25 years of experience in ESG. Each portfolio includes each of the six major asset classes including domestic and international equities, domestic and international bonds, alternative investments, and cash. Robo-advisors follow a “best in class” selection of companies within broad indices. The minimum investment is $100,000.
One of the most popular independent robo-advisors in the industry, Betterment prioritizes the stocks of companies that meet certain social, environmental, and governance criteria. There is increased exposure for companies that a positive social impact. For example, those that promote inclusive workplaces or commit to environmentally sustainable practices. SRI investing is mainly focused on two asset classes: US large-cap stocks and emerging market stocks. There is no minimum initial investment.
The largest robo-advisor in Canada has come to the US and is making a name for itself because of its ability to closely match personal preference. There are six different sectors to invest in, namely, low carbon exposure, clean tech, socially responsible American companies, gender diversity, local initiatives and affordable housing. There are three SRI portfolio types: conservative, which is more focused on bond funds, balanced, which is an even split between stocks and bonds but can be customized based on personal investment risk tolerance; and growth, which is mainly concentrated in stocks. There is no minimum investment.