Socially responsible investing

Socially Responsible Investing portfolios are designed to help you express your values and social ideals through your investments. Despite the various limitations that SRI portfolios face today, Betterment wants to support its customers in meeting their desires for more socially responsible vehicles for investing. Our approach to SRI has three fundamental dimensions: Reducing exposure to investments involved in non-socially responsible activities and environmental, social, or governmental ...

You can enable the SRI portfolio when adding a new goal, or updating your existing goal’s portfolio strategy. To update an existing goal, log in from a web browser and select your goal from the homepage. Go to the “Holdings” tab, then select “Edit” underneath Portfolio Strategy and follow the prompts. There is no minimum balance to use any of our SRI strategies. If you are already invested in Betterment’s SRI portfolio strategy and choose not to upgrade to any of these options, you will remain ...

The Betterment SRI portfolios have their own set of projections and advice based on capital market assumptions. Outputs such as the projection graph and recommended deposits will reflect your new portfolio selection, and you will be able to view them the same way as our other portfolio strategies via the Betterment app and website.

Yes. To learn more about the impact of the SRI portfolio strategies on certain product features, including TLH+ and Tax Coordination, please review our SRI disclosures.

The Social Impact SRI portfolio is similar to our Broad Impact SRI portfolio, but further promotes the social pillar of ESG investing by allocating to three stock ETFs which specifically focus on diversity and inclusion: Impact Shares NAACP Minority Empowerment ETF (NACP), SPDR SSGA Gender Diversity Index ETF (SHE), and Academy Veteran Impact ETF (VETZ). By investing in NACP, investors are allocating more of their money to companies with a better track record of social equity as defined by the ...

To view your current holdings: Log in to Betterment on a web browser. Select a specific investing goal from your home page. Navigate to the “Holdings” tab. Click on any asset class to learn more. Select the hyperlink to access the fund’s prospectus page listing all companies the fund tracks.

The Climate Impact SRI portfolio has greater focus on the environmental pillar of “ESG” rather than focusing on all ESG dimensions equally. It is designed to provide investors exposure to climate-conscious investments without sacrificing proper diversification and balanced cost. By investing in the Climate Impact portfolio, investors are actively divesting assets away from holders of fossil fuel reserves while cutting their investments’ carbon emissions. Carbon emissions per dollar of revenue ...

The Broad Impact SRI portfolio focuses on ETFs that considers all three environmental, social, and governance (ESG) pillars. It seeks to provide investors greater exposure to all of the different dimensions of social responsibility, such as lower carbon emissions, ethical labor management, or greater board diversity. The Broad Impact portfolio also invests in a broad U.S. stock market ETF focused on shareholder engagement. When compared to Betterment’s Core portfolio, we seek to replace the ...

We are now able to provide you with multiple globally-diversified SRI portfolios, at relatively low cost, that are expected to track the performance of the long-standing Betterment Core portfolio closely. However, in order to maintain geographic and asset class diversification and to meet our requirements for lower cost and higher liquidity in all SRI portfolios, we continue to allocate to some funds that do not have SRI mandates, particularly in bond asset classes. Betterment may add ...

Yes. To edit your portfolio strategy, log in from a web browser and select your SRI goal. Go to the Holdings tab, then select “edit” under Portfolio Strategy. Please note you can only make one change to your portfolio strategy per day.

VOTE is a first of its kind, sustainability-focused ETF, which will differentiate exclusively on how it plans to actively engage with the large cap US companies it holds via shareholder proposals and proxy voting. Engine No. 1, an activist hedge fund that focuses on sustainable investing issues, is the creator and manager of VOTE. Engine No. 1 made headlines in early June, 2021, by successfully installing three directors on Exxon’s board with the goal of pushing the company to reduce its carbon ...

As of June 29, 2021, the Betterment Core portfolio strategy has an expense ratio range of approximately 0.05% to 0.16% on average, when the weighting of the portfolio is taken into consideration. In comparison, the expense ratios for the Betterment SRI portfolios will be in the following ranges, depending on the relative allocation to stocks and bonds within the portfolio: Broad Impact: 0.13% - 0.18% Climate Impact: 0.16% - 0.21% Social Impact: 0.16% - 0.20% Sources: Xignite and Betterment ...