5 Best Robo Advisors for Managing ESG Funds

By Barbara Friedberg, Contributor

Oct. 30, 2019

ENVIRONMENTAL, SOCIAL and governance funds, or ESG, belong to the family of sustainable, responsible and impact investing, sometimes referred to as SRI. This alphabet soup of investment strategies is a newer investment approach that strives to generate high long-term returns and positive societal results.

ESG investing can be accomplished by investing in individual stocks and bonds, specifically targeted SRI funds, and employing a digital or a robo investment manager who specializes in this approach.

From minimal ESG investing opportunities in the 1990s to about $12 trillion in assets under management in 2017, socially responsible investing is growing in popularity. The US SIF Foundation’s most recent biennial report found that one in four dollars of professionally managed funds is directed toward ESG investing.

Not only individual investors but credit unions, community banks hospitals, foundations, religious institutions, venture capitalists and public pensions invest in ESG investing companies.

Answering to public demand, robo advisory digital investment managers, a type of nonhuman advisor, are now in the movement.

The best ESG robo advisor will incorporate SRI investing criteria that matter to you, the opportunity to customize the investment options and low fees. Here are five of the best ESG robo-advisor services:

• M1 Finance.
• Betterment.
• EarthFolio.
• Wealthsimple.
• Motif Impact Portfolios.

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