9 Best Robo-Advisors for Socially Conscious Investors of February 2023
These robo-advisors build socially conscious investment portfolios and manage them for you, so you can invest ethically without the effort.
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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
All of these providers offer at least one managed socially responsible portfolio, and many offer multiple managed socially responsible portfolios.
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.
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
All of these providers offer at least one managed socially responsible portfolio, and many offer multiple managed socially responsible portfolios.
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.
Best Robo-Advisors for Socially Conscious Investors
| Broker | NerdWallet rating | Fees | Account minimum | Promotion | Learn more |
|---|---|---|---|---|---|
 Vanguard Digital Advisor Read review Unpaid non-client promotion | Reviewed in: Oct. 2022 Period considered: Aug. - Oct. 2022 | 0.15% per year
(approximately) | $3,000 | No advisory fees your first 90 days of Vanguard Digital Advisor investment management (Enrollment requires a Vanguard account with a minimum of $3,000) | Read review Unpaid non-client promotion |
 Betterment Learn more on Betterment's website AD Paid non-client promotion | Reviewed in: Oct. 2022 Period considered: Aug. - Oct. 2022 | 0.25% with a balance over $20K or qualifying recurring deposit. Otherwise, $4/month. | $0 | Up to 1 year of free management for new clients. Terms apply. | Learn more on Betterment's website AD Paid non-client promotion |
 Wealthfront Learn more on Wealthfront's website AD Paid non-client promotion | Reviewed in: Oct. 2022 Period considered: Aug. - Oct. 2022 | 0.25% management fee | $500 | Get $50 customer bonus when you fund your first taxable Investment Account | Learn more on Wealthfront's website AD Paid non-client promotion |
 Ally Invest Robo Portfolios Read review Unpaid non-client promotion | Reviewed in: Oct. 2022 Period considered: Aug. - Oct. 2022 | 0.0% with Cash-Enhanced Managed Portfolio; 0.3% otherwise | $100 | None no promotion available at this time | Read review Unpaid non-client promotion |
 Axos Managed Portfolios Learn more on Axos Invest's website AD Paid non-client promotion | Reviewed in: Oct. 2022 Period considered: Aug. - Oct. 2022 | 0.24% management fee | $500 | Get $200 when you open, fund, and make at least 2 trades in your Axos Managed Portfolios account. | Learn more on Axos Invest's website AD Paid non-client promotion |
Unpaid non-client promotion
Fees
0.15%
per year (approximately)
Account minimum
$3,000
Promotion
No advisory fees
your first 90 days of Vanguard Digital Advisor investment management (Enrollment requires a Vanguard account with a minimum of $3,000)
Pros
Access to Vanguard’s investing expertise and ETFs.
Low management fee relative to competitors.
Low investment expense ratios and no additional account fees.
Cons
Limited portfolio options and customization.
Why We Like It
Vanguard Digital Advisor is an affordable robo-advisory service using several of Vanguard’s key ETFs to create a personalized retirement plan and portfolio for investors.
AD
Paid non-client promotion
Fees
0.25%
with a balance over $20K or qualifying recurring deposit. Otherwise, $4/month.
Account minimum
$0
Promotion
Up to 1 year
of free management for new clients. Terms apply.
Pros
Multiple portfolio options and customization.
Low account minimum and fees
Fractional shares mean all your cash is invested.
Robust goal-based tools.
Cons
No direct indexing.
Why We Like It
Betterment has maintained its status as the largest independent robo-advisor for a reason: The company offers a powerful combination of goal-based tools, affordable management fees and no account minimum.
AD
Paid non-client promotion
Fees
0.25%
management fee
Account minimum
$500
Promotion
Get $50 customer bonus
when you fund your first taxable Investment Account
Pros
Get $50 customer bonus when you fund your first taxable investment account (NerdWallet promotion).
Low ETF expense ratios.
Daily tax-loss harvesting.
Automatic rebalancing.
Cons
No fractional shares.
No human financial advisors.
Why We Like It
Wealthfront has built client trust by offering free management on the first $5,000 — with NerdWallet’s promotion — and the company’s stock-level tax-loss harvesting service really shines.
Unpaid non-client promotion
Fees
0.0%
with Cash-Enhanced Managed Portfolio; 0.3% otherwise
Account minimum
$100
Promotion
None
no promotion available at this time
Pros
Solid investment selection.
Integration for Ally bank and brokerage clients.
Cons
No tax-loss harvesting.
Why We Like It
Ally Invest Robo Portfolios is best suited to retirement accounts or loyal Ally customers who want to house a managed account, a trading account and their bank accounts under one roof. The lack of tax-loss harvesting will be an issue for investors with taxable brokerage accounts.
AD
Paid non-client promotion
Fees
0.24%
management fee
Account minimum
$500
Promotion
Get $200
when you open, fund, and make at least 2 trades in your Axos Managed Portfolios account.
Pros
Low account management costs.
Customizable portfolios.
Goal-based planning tools.
Cons
Limited account selection.
Why We Like It
Axos Invest stands out for the level of customization allowed by the service: The company allows investors to add or remove 32 investment types, including socially responsible investments.
AD
Paid non-client promotion
Fees
0.30%
management fee
Account minimum
$500
Promotion
None
no promotion available at this time
Pros
Extensive investor tools and educational resources.
Strong customer service.
Low investment-expense ratios.
Specialty portfolio options.
Cons
No tax-loss harvesting.
Why We Like It
If you’re after a robo-advisor portfolio with actively managed mutual funds, E*TRADE is a strong option. Otherwise, you may be able to get more for less from a competitor, particularly if you hold a high balance in a taxable account.
AD
Paid non-client promotion
Fees
$3 - $5
per month
Account minimum
$0
Promotion
$10 Sign Up Bonus
Pros
Automatically invests spare change.
Cash back at select retailers.
Educational content available.
Cons
High fee on small account balances.
Why We Like It
If you want to make the most of your spare change and get the occasional retailer kickback, there’s really no better place to do that. The automatic roundups at Acorns make saving and investing easy, and most investors will be surprised by how quickly those pennies accumulate. The downside? At small balances, Acorns fees can cut into or completely wipe away investment returns.
Want to compare more options? Here are our other top picks:
Last updated on January 3, 2023
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Methodology
NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. robo-advisors. 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. We adhere to strict guidelines for editorial integrity.
We collect data directly from providers through detailed questionnaires, and conduct first-hand testing and observation through provider demonstrations. The questionnaire answers, combined with 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).
For more details about the categories considered when rating robo-advisors and our process, read our full methodology.
To recap our selections...
NerdWallet's Best Robo-Advisors for Socially Conscious Investors of February 2023
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.
