Betterment and Wealthfront, which collectively manage more than $15.5 billion in assets, are rolling out stock portfolios that screen for human rights, health and safety, environmental impact and strong corporate governance.
Both firms are among the top five U.S. digital investment advisors, or “robo-advisors,” by assets under management.
So far, socially responsible and impact investing offerings have been limited to smaller advisors. “It’s something there has been a lot of pent up demand for,” says Dan Egan of Betterment, the larger of the two digital investment advisors.
Betterment, based in New York, will focus on index-tracking; California-based Wealthfront will allow its clients to pick stocks directly.