The Best Socially Responsible Investment Platforms for Values-Based Investing

Are you looking to make your money work for both you and the greater good? Socially responsible investing (SRI) allows you to do just that. Thanks to innovative fintech solutions, it’s now easier than ever to align your investments with your values. In this post, we’ll explore the top 5 socially responsible investment platforms that make ESG investing (i.e. investing in companies dedicated to Environmental, Social and Governance factors) easy and accessible to everyone.

Check out our article on ESG Investing if you would like to learn more!

Top 5 Socially Responsible Investing Platforms

1. Betterment

Leading the pack in robo-advisory services, Betterment offers a user-friendly approach to socially responsible investing. Their SRI portfolio focuses on ETFs that prioritize companies with strong environmental, social, and governance (ESG) practices.

Key Features:

• No minimum investment requirement

• Automated portfolio rebalancing

• Tax Loss Harvesting
• Competitive fees (.25% annual fee for basic plan)

I personally have been using Betterment for years for both my investments and high-yield savings.  Their platform is so user friendly and transparent.  Highly recommend!

Betterment’s SRI option allows investors to exclude companies involved in non-renewable energy, while increasing exposure to companies that meet high ESG standards. This makes it an excellent choice for those new to socially responsible investing or those who prefer a hands-off approach.

2. Wealthsimple

Wealthsimple stands out with its dedicated socially responsible investing portfolios. The platform offers three different SRI options: Conservative, Balanced, and Growth, catering to various risk tolerances.

Key Features

• No account minimum
• Automatic rebalancing
• Halal investing option
• Competitive fees (0.5% annual fee for accounts under $100,000)

Wealthsimple’s SRI portfolios exclude companies involved in tobacco, weapons, and fossil fuels, while favoring those with low carbon emissions and strong diversity practices. The platform’s commitment to transparency and ethical investing makes it a top choice for conscious investors.

3. Vanguard

Vanguard, one of the world’s largest investment management companies, has also entered the socially responsible investing arena. Known for its low-cost index funds, Vanguard offers several ESG-focused options that allow investors to align their portfolios with their values without sacrificing the benefits of Vanguard’s renowned low-fee approach.

Key Features:

• Low expense ratios typical of Vanguard funds
• Options for both mutual funds and ETFs
• Broad market exposure with ESG screening
• Backed by Vanguard’s robust research and fund management expertise

What sets Vanguard apart in the ESG space is its combination of broad market exposure, rigorous ESG screening, and characteristically low fees. This makes Vanguard's ESG options particularly attractive for investors who want to incorporate socially responsible investing into their portfolios without significantly increasing their investment costs.

4. Earthfolio

Earthfolio focuses exclusively on sustainable and responsible investing. This platform offers professionally managed portfolios composed entirely of socially responsible mutual funds.

Key Features:

• $25,000 minimum investment
• Eight risk-adjusted portfolio options
• Automatic rebalancing
• Competitive fees (0.5% annual fee)

Earthfolio’s rigorous screening process ensures that all investments meet strict environmental and social criteria. While the higher minimum investment may be a barrier for some, it’s an excellent option for those ready to make a significant commitment to socially responsible investing.

5. Ellevest

Ellevest stands out in the world of socially responsible investing with its unique focus on women’s financial empowerment (Love this). Founded by Wall Street veteran Sallie Krawcheck, Ellevest aims to close the gender investing gap while promoting socially responsible practices.

Key Features:

• No minimum investment for basic digital plan
• Customized investment plans based on women’s specific financial realities
• Impact portfolios focusing on women’s empowerment and social responsibility
• Competitive fees (0.25% annual fee for digital plan, 0.50% for premium)

Ellevest’s approach to socially responsible investing is twofold. First, the platform itself is designed to address the unique financial challenges women face, such as longer lifespans and potential career breaks. Second, Ellevest offers impact portfolios that invest in companies advancing women’s leadership and social good.

Choosing the Right Platform for You

When selecting a socially responsible investment platform, consider the following factors:

1. Minimum investment requirements
2. Fees and expenses
3. Investment options and flexibility
4. User interface and ease of use
5. Impact reporting and transparency

Remember, socially responsible investing is a personal journey. What matters most is finding a platform that aligns with your values and financial goals. With these innovative platforms, you can easily invest in companies that are making a positive impact on the world. Whether you’re a seasoned investor or just starting out, there’s an SRI platform that can help you grow your wealth while supporting the causes you care about.