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Eleven Online Platforms where you can make Socially Responsible Investments

By Lena Backe, Social Impact Analyst, Pacific Community Ventures

A quick guide to the minimums, fees, investment types and impact of leading online advisors for retail investors.

As the socially responsible, ESG (environmental, social and governance), and impact investing[1] movements have gained steam, so has the number of companies offering products aligned with investors’ values

Providing low-cost, low-effort personal investment options, U.S. robo-advisors currently have more than $100 billion in assets, and are estimated to reach $2.2 trillion by 2020. To differentiate themselves within the market, and attract the 63 percent of millennials who have invested or intend to put money into socially responsible investments, socially conscious platforms and investment options are rapidly expanding.

It’s no wonder why — socially responsible investments are an $8 trillion category that’s expected to continue to grow — especially as baby boomers pass on their wealth to millennials.

With an increasing number of players, it can be daunting for investors who want to align their portfolios with their values to decide which platform is best suited to their financial, environmental, and social impact objectives.

Here, we’ve laid out a number of the most prevalent socially responsible investment online investment platforms to give you the basics of what you need to know — from an impact perspective, given our expertise in this arena — when choosing a platform.

For each platform, you can get the quick and basic details about minimums, fees, and types of investment, but also gain insight into how each advisor thinks about what it means to “invest with impact” and the degree of transparency each offers regarding their socially responsible investment products.

For those looking for the quick takeaway:

• Of impact-only online investment platforms, OpenInvest and Swell shine by enabling investors to mix and match among impact themes and providing clear insight into how companies are selected for each.

• Of traditional online investment platforms with SRI options, Hedgeable and Wealthsimple offer investors the most transparent and customizable variety of impact-driven investment options.

This piece is not intended to endorse any specific platform, nor provide an analysis regarding the financial performance of different products. Although there is limited transparency about financial performance, we encourage you to do additional research into the expected return of each provider when selecting your investment platform.

 

Read the full article to find out more on all eleven platforms: Betterment, Earthfolio, Hedgeable, Motif, OpenInvest, Prophecy, Stash, Swell, TIAA Personal Portfolio, Wealthfront, Wealthsimple here –

https://news.impactalpha.com/eleven-online-platforms-that-let-you-yes-you-make-socially-responsible-investments-right-now-d150e781fe46

Article Note:

[1] https://www.investopedia.com/articles/investing/111816/how-esg-sri-and-impact-funds-differ.asp

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