BEST OF
These robo-advisors build socially conscious investment portfolios and manage them for you, so you can invest ethically without the effort.
By Alana Benson
Edited byArielle O'Shea
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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.
Why you can trust NerdWallet's picks: Our writers and editors together have more than 50 years of experience writing about finance, and follow strict guidelines to maintain editorial integrity. We do a deep, independent analysis of dozens of investment firms, sorting through the details to find and evaluate the information investors want when choosing an investing account. To see our full methodology and learn more about our process, read our criteria for evaluating robo-advisors.
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.
Why you can trust NerdWallet's picks: Our writers and editors together have more than 50 years of experience writing about finance, and follow strict guidelines to maintain editorial integrity. We do a deep, independent analysis of dozens of investment firms, sorting through the details to find and evaluate the information investors want when choosing an investing account. To see our full methodology and learn more about our process, read our criteria for evaluating robo-advisors.
Broker | NerdWallet rating | Fees | Account minimum | Promotion | Learn more |
---|---|---|---|---|---|
Wealthfront Learn more on Wealthfront's website AD Paid non-client promotion | 5.0/5 Reviewed in: Oct. 2023 Period considered: Aug. - Oct. 2023 | 0.25% management fee | $500 | Get a $50 customer bonus when you fund your first taxable investment account | Learn more on Wealthfront's website AD Paid non-client promotion |
Vanguard Digital Advisor Learn more on Vanguard's website AD Paid non-client promotion | 4.8/5 Reviewed in: Oct. 2023 Period considered: Aug. - Oct. 2023 | 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) | Learn more on Vanguard's website AD Paid non-client promotion |
Betterment Learn more on Betterment's website AD Paid non-client promotion | 5.0/5 Reviewed in: Oct. 2023 Period considered: Aug. - Oct. 2023 | 0.25% with a balance over $20K or qualifying recurring deposit. Otherwise, $4/month. | $0 $10 to start | None no promotion available at this time | Learn more on Betterment's website AD Paid non-client promotion |
E*TRADE Core Portfolios Read review Unpaid non-client promotion | 4.4/5 Reviewed in: Oct. 2023 Period considered: Aug. - Oct. 2023 | 0.30% management fee | $500 | None no promotion available at this time | Read review Unpaid non-client promotion |
Acorns Learn more on Acorns' website AD Paid non-client promotion | 4.7/5 Reviewed in: Oct. 2023 Period considered: Aug. - Oct. 2023 | $3 - per month | $0 | $10 Sign Up Bonus | Learn more on Acorns' website AD Paid non-client promotion |
NerdWallet rating
5.0/5Reviewed in: Oct. 2023
Period considered: Aug. - Oct. 2023
on Wealthfront's website
AD
Paid non-client promotion
Fees
0.25%
management fee
Account minimum
$500
Promotion
Get a $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 human financial advisors.
Why We Like It
With Wealthfront, you get low-cost access to a diverse investment lineup, excellent planning tools and a variety of tax-saving strategies. The company also offers access to individual stocks for DIY investors.
Best Robo-Advisor for Low-Cost Investing2024
NerdWallet rating
4.8/5Reviewed in: Oct. 2023
Period considered: Aug. - Oct. 2023
on Vanguard's website
AD
Paid 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.
NerdWallet rating
5.0/5Reviewed in: Oct. 2023
Period considered: Aug. - Oct. 2023
on Betterment's website
AD
Paid non-client promotion
Fees
0.25%
with a balance over $20K or qualifying recurring deposit. Otherwise, $4/month.
Promotion
None
no promotion available at this time
Pros
Multiple portfolio options, including customization.
Low account minimum and fees
Fractional shares allow all cash to be 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.
NerdWallet rating
4.7/5Reviewed in: Oct. 2023
Period considered: Aug. - Oct. 2023
on Acorns' website
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.
NerdWallet rating
4.7/5Reviewed in: Oct. 2023
Period considered: Aug. - Oct. 2023
on Ellevest's website
AD
Paid non-client promotion
Fees
$12
per month
Account minimum
$0
Promotion
2 months free
with promo code "nerdwallet"
Pros
No account minimum.
Goal-focused investing approach.
Portfolio mix that factors women’s needs.
A la carte sessions with coaches and CFPs.
Cons
No tax-loss harvesting.
Why We Like It
Ellevest offers a single flat-fee plan which costs $12 a month. Clients get discounted access to professional financial planning, free educational resources and the only investing platform that factors in women’s pay gaps, career breaks and longer lifespans. Ellevest also offers Private Wealth Management for investors with $1 million or more.
Want to compare more options? Here are our other top picks:
E*TRADE Core Portfolios
Axos Managed Portfolios
Ally Invest Robo Portfolios
Merrill Guided Investing
Last updated on March 1, 2024
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 March 2024
- Wealthfront
- Vanguard Digital Advisor
- Betterment
- E*TRADE Core Portfolios
- Acorns
- Ellevest
- Axos Managed Portfolios
- Ally Invest Robo Portfolios
- Merrill Guided Investing
Frequently asked questions
While the various forms of socially responsible investing, or SRI, have different origins and missions, many terms (including impact investing, values-based investing, sustainable investing and ethical investing) are now used synonymously. Though ESG investing, too, is sometimes used interchangeably with the other terms, ESG investing really refers to a specific way of grading investments using environmental, social and governance rather than a general term for a way to invest according to a set of moral guidelines. Socially responsible, ethical and impact investors may use ESG standards to help them choose investments.
One important question to ask regardless of the term an advisor or robo-advisor uses for their socially responsible portfolios is how they create those portfolios. Traditionally, “socially responsible” portfolios have only excluded investments deemed unacceptable, such as stakes in tobacco or alcohol. There has more recently been a push to also include positive investments, such as solar energy companies. Now, there is little consensus about which terms use exclusive methods, which use inclusive and which use both. That’s why it’s important to ask about any potential advisor’s methodology for choosing socially conscious investments.
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.
Research from Bloomberg Green and the Morgan Stanley Institute for Sustainable Investing suggests yes. While every investment has some inherent risk, there is evidence that ESG investments may have lower risk than their traditional counterparts. And in studies from research firm Morningstar and asset-management firm Arabesque Partners, ESG investments have not only matched conventional funds in performance, but outperformed them.
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.