Review of Top Socially Responsible Investing Tools
Review of Socially Responsible Investing Tools
Introduction
Socially Responsible Investing (SRI) is gaining popularity among investors who want to align their financial goals with their ethical values. SRI focuses on investing in companies that have a positive social and environmental impact. To help investors make informed decisions, various tools and platforms have emerged in recent years. In this article, we will review some of the top socially responsible investing tools available in the market.
1. OpenInvest
OpenInvest is a digital investment advisor that allows investors to personalize their portfolios according to their values. It offers a range of pre-built portfolios based on different social and environmental themes, such as gender equality, clean energy, and sustainable agriculture. OpenInvest also provides transparency by allowing investors to see the companies they are investing in and engage in shareholder advocacy.
2. Betterment
Betterment, a well-known robo-advisor, also offers socially responsible investing options. It provides a portfolio allocation based on environmental, social, and governance (ESG) criteria. Betterment’s SRI portfolios include companies with high ESG ratings and exclude industries such as tobacco, fossil fuels, and firearms. The platform also provides educational resources to help investors understand the impact of their investments.
3. Wealthsimple
Wealthsimple is another popular robo-advisor that offers socially responsible investing portfolios. It provides a diversified portfolio of low-cost exchange-traded funds (ETFs) that focus on companies with strong ESG practices. Wealthsimple’s SRI portfolios also exclude industries such as weapons, tobacco, and fossil fuels. The platform offers a user-friendly interface and personalized investment advice.
4. EarthFolio
EarthFolio is an online investment platform that specializes in socially responsible investing. It offers a range of diversified portfolios that align with various environmental, social, and governance values. EarthFolio’s portfolios include companies involved in renewable energy, sustainable agriculture, and social impact initiatives. The platform also provides regular impact reports to keep investors informed about the positive changes their investments are making.
5. MSCI ESG Research
MSCI ESG Research is a leading provider of ESG ratings and research. It offers a suite of tools that allow investors to assess the ESG performance of companies and portfolios. MSCI’s ESG ratings provide insights into a company’s exposure to ESG risks and its ability to manage those risks. Investors can use these ratings to make informed decisions and construct socially responsible portfolios.
Conclusion
Socially responsible investing tools have made it easier for investors to align their financial goals with their values. Whether you prefer robo-advisors, online platforms, or research tools, there are various options available to help you invest in companies that make a positive impact on society and the environment. By utilizing these tools, investors can contribute to a more sustainable and responsible future while achieving their financial objectives.