# Top Robo-Advisors for Ethical Investing
Ethical investing has gained significant attention in recent years as more investors look for ways to align their financial goals with their personal values. This shift has prompted the emergence of robo-advisors that prioritize sustainable, socially responsible, and impact investing. Below, we explore some of the top robo-advisors that allow investors to put their money to work in an ethically conscious manner.
Understanding Ethical Investing
Before diving into the specifics, it’s essential to understand what ethical investing entails. Ethical investing, also known as socially responsible investing (SRI), sustainable investing, or impact investing, focuses on generating financial returns while considering the investment’s impact on environmental, social, and governance (ESG) criteria.
Betterment
Betterment is a trailblazer in the robo-advisory space, offering automated investing services tailored to a client’s financial goals and risk tolerance. Recognizing the demand for ethical investing, Betterment provides socially responsible investing portfolios that focus on companies with commendable ESG practices.
Features
– **Broad ESG Integration**: Betterment’s SRI portfolios are designed to prioritize investments in companies with positive ESG practices without significantly compromising returns.
– **Portfolio Customization**: Investors have the opportunity to customize their portfolios based on their specific ethical principles and financial objectives.
– **Affordability**: With a low account minimum and a competitive fee structure, Betterment makes ethical investing accessible to a wide audience.
Wealthsimple
Wealthsimple stands out for its dedication to making ethical investing straightforward and accessible. This robo-advisor offers specially curated portfolios that emphasize social responsibility, environmental sustainability, and corporate governance.
Features
– **Diversified SRI Portfolios**: Wealthsimple provides investors with a selection of SRI portfolios that include a mix of ETFs focusing on low carbon, social responsibility, and cleantech themes.
– **Accessibility**: No minimum investment makes it incredibly accessible for investors who are just starting out or who prefer to start small.
– **Transparent Fees**: Wealthsimple’s clear, easy-to-understand fee structure ensures investors know exactly what they’re paying for.
Ellevest
Ellevest is unique among robo-advisors for its focus on women investors, although it’s inclusive to all. It offers impact portfolios designed to generate social and economic change alongside financial return.
Features
– **Impact Investing**: Ellevest’s Impact Portfolio includes funds invested in companies with more women leaders, community development initiatives, and sustainable practices.
– **Customized Financial Planning**: Beyond investment management, Ellevest provides customized financial planning services tailored to each investor’s personal goals.
– **Pricing**: A variety of pricing tiers makes Ellevest accessible for investors with different needs and investment amounts.
Personal Capital
Personal Capital blends advanced technology with human financial advisors to provide a comprehensive wealth management experience. It offers Socially Responsible Investment (SRI) strategies focused on companies that adhere to sustainability and ethical practices.
Features
– **Hybrid Approach**: Combines robo-advisory with human financial advice, offering a more personalized investment experience.
– **Customizable SRI Options**: Investors can customize their portfolios based on their specific SRI preferences, balancing between various ESG factors.
– **Wealth Management Services**: In addition to SRI, Personal Capital offers a wide range of financial planning and wealth management services.
Conclusion
These robo-advisors offer compelling options for ethical investors, each with its unique approach and set of features. Whether you’re new to investing or looking to realign your portfolio with your values, there’s likely a robo-advisor that meets your needs. As the demand for ethical investing continues to grow, we can expect to see even more innovation and choice in this space, making it easier for individuals to invest in a manner that reflects their values and contributes to a more sustainable world.
