8 Best Robo-Advisors for Socially Conscious Investors of September 2021
These robo-advisors build socially conscious portfolios and manage them for you, so you can invest ethically without the effort.
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
The investing information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks or securities.
If you want to start investing but would prefer for your investment dollars to do some good in the world, you may want to consider working with a robo-advisor. Robo-advisors use computer algorithms to build and manage an investment portfolio for you, taking into account your investment time frame and risk tolerance. The below robo-advisors offer socially conscious portfolios, allowing you to not only invest in your future but in the future of the planet and society.
» New to this? Read up on the basics of socially responsible investing
Most of these robo-advisors choose their assets using the principles of ESG investing. ESG is a way to measure a company or investment’s environmental, social and governance impact. Research firms and advisors often use ESG scores as a way to grade sustainable investments.
The bottom line: These robo-advisors can help you start investing in a socially conscious portfolio for no additional charge. (One note: Stash is not a robo-advisor, but the app offers education that can help investors build their own custom ESG portfolios. The offering and educational support is strong enough that we’ve included Stash here.)
If you want to start investing but would prefer for your investment dollars to do some good in the world, you may want to consider working with a robo-advisor. Robo-advisors use computer algorithms to build and manage an investment portfolio for you, taking into account your investment time frame and risk tolerance. The below robo-advisors offer socially conscious portfolios, allowing you to not only invest in your future but in the future of the planet and society.
» New to this? Read up on the basics of socially responsible investing
Most of these robo-advisors choose their assets using the principles of ESG investing. ESG is a way to measure a company or investment’s environmental, social and governance impact. Research firms and advisors often use ESG scores as a way to grade sustainable investments.
The bottom line: These robo-advisors can help you start investing in a socially conscious portfolio for no additional charge. (One note: Stash is not a robo-advisor, but the app offers education that can help investors build their own custom ESG portfolios. The offering and educational support is strong enough that we’ve included Stash here.)
Summary of Best Robo-Advisors for Socially Conscious Investors of September 2021
| Broker | NerdWallet Rating | Fees | Account Minimum | Promotion | Learn More |
|---|---|---|---|---|---|
 E*TRADE Core Portfolios Learn more on E*TRADE's website | 0.30% management fee | $500 | None no promotion available at this time | Learn more on E*TRADE's website | |
 Betterment Learn more on Betterment's website | 0.25% management fee | $0 | Up to 1 year of free management with a qualifying deposit | Learn more on Betterment's website | |
 Stash Learn more on Stash's website | $1 - $9 per month | $0 | Up to $510 in credit to invest with qualifying deposit into taxable account (see terms) | Learn more on Stash's website | |
 Ellevest Learn more on Ellevest's website | $1 - $9 per month | $0 | 2 months free with promo code "nerdwallet" | Learn more on Ellevest's website | |
 Axos Managed Portfolios Learn more on Axos Invest's website | 0.24% management fee | $500 | None no promotion available at this time | Learn more on Axos Invest's website |
on E*TRADE's website
E*TRADE Core Portfolios
Fees
management fee
Account Minimum
Promotion
no promotion available at this time
on E*TRADE's website
on Betterment's website
Betterment
Fees
management fee
Account Minimum
Promotion
of free management with a qualifying deposit
on Betterment's website
on Stash's website
Stash
Fees
per month
Account Minimum
Promotion
with qualifying deposit into taxable account (see terms)
on Stash's website
on Ellevest's website
Ellevest
Fees
per month
Account Minimum
Promotion
with promo code "nerdwallet"
on Ellevest's website
Want to compare more options? Here are our other top picks:
NerdWallet is a paid solicitor of Stash. Stash offers three plans, starting at just $1/month. For more information on each plan, visit the company's pricing page. The Stash Monthly Wrap Fee starts at $1/ month. You’ll also bear the standard fees and expenses reflected in the pricing of the ETFs in your account, plus fees for various ancillary services charged by Stash and the Custodian. Please see the Advisory Agreement for details. Other fees apply to the bank account. Please see the Deposit Account Agreement. A “Smart Portfolio” is a Discretionary Managed account whereby Stash has full authority to manage. “Smart” is only available in Growth ($3) and/or premium ($9). This material is not intended as investment advice and is not meant to suggest that any securities are suitable investments for any particular investor. Investment advice is only provided to Stash customers. All investments are subject to risk and may lose value.
Last updated on August 4, 2021
Methodology
NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. brokers and robo-advisors by assets under management, along with emerging industry players, using a multifaceted and iterative approach. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs.
DATA COLLECTION AND REVIEW PROCESS
We collect data directly from providers, and conduct first-hand testing and observation through provider demonstrations. Our process starts by sending detailed questionnaires to providers to complete. The questionnaires are structured to equally elicit both favorable and unfavorable responses from providers. They are not designed or prepared to produce any predetermined results. The questionnaire answers, combined with product demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across more than 20 factors. The final output produces star ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
RATING FACTORS
Evaluations vary by provider type, but in each case are based upon the weighted averages of factors that include but are not limited to: advisory and account fees, account minimums and types, investment selection, investment expense ratios, trading costs, access to human financial advisors, educational resources and tools, rebalancing and tax minimization options, and customer support including branch access, user-facing technology and mobile platforms.
Each factor can involve evaluating various sub-factors. For instance, when gauging the investment selections offered by robo-advisors, 80% of the score is based on the potential for diversification (how well-diversified a resulting portfolio of investments could be) combined with the availability of specialty portfolios and level of customization for investors. Expense ratios form an additional 10% of the score, and low or no management fee the remaining 10%.
FACTOR WEIGHTINGS
The weighting of each factor is based on our team’s assessment of which features are the most important to consumers and which ones impact the consumer experience in the most meaningful way. The factors considered, and how those factors are weighted, change depending upon the category of providers reviewed.
Provider categories include: Best Brokers for Stock Trading, Best Brokers for Beginners, Best Brokers for Day Trading, Best Brokers for Options Trading, Best Discount Brokers, Best Brokers for Free Trading, Best Investment Apps, Best Brokers for Penny Stocks, Best IRA Brokers, Best Robo-Advisors, Best Financial Advisors, Best Real Estate Platforms, Best Brokers for ETFs and Best Brokers for Mutual Funds.
INFORMATION UPDATES
Writers and editors conduct our broker and robo-advisor reviews on an annual basis but continually make updates throughout the year. We maintain frequent contact with providers and highlight any changes in offerings.
THE REVIEW TEAM
The review team comprises seasoned writers, researchers and editors who cover stocks, bonds, mutual funds, index funds, exchange-traded funds, alternative investments, socially responsible investing, financial advisors, retirement and investment strategy on a daily basis. In addition to NerdWallet, the work of our team members has been published in The New York Times, The Washington Post, Forbes, USA Today, Bloomberg News, Nasdaq, MSN, MarketWatch, Yahoo! Finance and other national and regional media outlets.
The combined expertise of our Investing team is infused into our review process to ensure thoughtful evaluations of provider products and services from the customer perspective. Our writers and editors combine to have more than 70 years of deep experience in finance, ranging from a former Wall Street Journal reporter to a former senior financial advisor at Merrill Lynch.
CONFLICTS OF INTEREST
While NerdWallet does have partnerships with many of the reviewed providers, we manage potential conflicts of interest by maintaining a wall between our content and business operations. This wall is designed to prevent our writers and the review process from being influenced or impacted by our business partnerships. This way, all reviews can provide an unbiased review that serves the interests of our users. For more information, see NerdWallet’s editorial guidelines.
To recap our selections...
NerdWallet's Best Robo-Advisors for Socially Conscious Investors of September 2021
Frequently asked questions
For the most part, no. While some robo-advisors let you exclude certain investments, their function is to build a portfolio for you. If you want to pick your own investments, you’ll likely want to work with an online broker (here’s our roundup of the best brokers). There has been a recent explosion of exchange-traded funds and mutual funds that make it easy for investors to support their beliefs within a diversified portfolio (they are also the building blocks of most robo-advisors’ SRI portfolios). These funds eliminate the legwork of identifying individual stocks that match specific ESG criteria. If you’re looking for socially conscious investments you can choose yourself, see our top picks for ESG funds.
If you’d like to know exactly what kind of impact your investment has had, it’s a good idea to request an impact report from the fund or company you’ve invested in. This will outline things like carbon emissions, gender diversity and initiatives to have an impact on local communities.
