đź“‹ This guide is for educational purposes only and isn't financial advice. Always consult a licensed financial advisor to tailor strategies to your specific needs.
Socially responsible investing (SRI) has gained popularity as investors seek to align their portfolios with their values. A growing number of apps now offer tools to build portfolios centered around environmental, social, and governance (ESG) principles. With many options available, it can be tough to choose the right one.
Quick answer: The best investment apps for socially responsible investing include Betterment, M1 Finance, and Acorns. Betterment offers automated, low-cost ESG portfolios starting at 0.25% annual fees. M1 Finance is ideal for DIY investors with its customizable pie system. Acorns rounds up spare change to invest in sustainable portfolios, making it a simple choice for beginners.
Why Choose a Socially Responsible Investment App?
Socially responsible investing is about more than profit. It prioritizes ethical considerations alongside financial returns. In 2023, over $35 trillion was invested globally in ESG-focused assets, which shows the growing demand for values-driven investing.
Many SRI-focused apps make it easier for users to invest in companies and funds that align with their beliefs. For example, apps like Betterment and M1 Finance offer pre-designed portfolios targeting climate-friendly companies and other social goals. With these tools, you can track your investments and ensure they contribute to a sustainable future.
But here's a key insight: SRI doesn't mean you've to sacrifice returns. In fact, ESG funds have performed competitively against traditional investments in 80% of cases as of 2023. You'll want to consider fees, investment options, and user experience.
Top Socially Responsible Investment Apps
Here are the best apps for SRI, along with their features and costs:
| App | Features | Annual Fee | Minimum Deposit | |---------------|-----------------------------------|------------|-----------------| | Betterment | Automated ESG portfolios | 0.25% | $10 | | M1 Finance | Customizable pies for ESG stocks | Free | $100 | | Acorns | Round-ups for micro-investing | $3/month | $0 | | Ellevest | Gender-focused ESG portfolios | $5/month | $1 | | Wealthsimple | Impact portfolios, no minimum | 0.50% | $0 |
Betterment stands out for its simplicity. With a $10 minimum deposit, you can access portfolios designed to minimize carbon emissions while balancing risk and return. M1 Finance lets you create your own "pie" of ESG-focused stocks and ETFs, perfect for hands-on investors. If ease is your priority, Acorns automates the process by investing your spare change into sustainable funds.
Key Features to Look for in SRI Investment Apps
When choosing an app, focus on what matters most to you. Not all platforms treat SRI the same way. Some prioritize environmental impact, while others focus on social equality or corporate governance.
- Low fees: High fees can eat into your returns. Betterment’s 0.25% annual fee is a benchmark for affordable management costs.
- Diverse options: Apps like Wealthsimple offer various impact portfolios, including clean energy and gender equity.
- Ease of use: Acorns makes small-scale investing simple by rounding up your purchases and automatically investing the difference.
- Transparency: Look for apps that clearly report how your investments align with ESG goals. For example, Ellevest offers detailed reports on your portfolio’s impact.
If you're new to investing, consider starting with platforms like Acorns, which are beginner-friendly. Experienced investors may prefer M1 Finance for its DIY customization.
Which App Is Right for You?
Choosing the right app depends on your goals and experience level. Here's a quick guide:
- Betterment: Ideal for those seeking a hands-off approach. Its automated portfolios are great for beginners who want low-cost ESG options.
- M1 Finance: Best for DIY investors who prefer to hand-pick ESG stocks and funds. The free account and $100 minimum deposit make it accessible.
- Acorns: Perfect for beginners or those who want to invest spare change. The cost is $3/month, and there's no minimum deposit.
- Wealthsimple: Offers diverse ESG portfolios, including climate-conscious and gender equity options. It's a good choice for users who want flexibility.
- Ellevest: Designed for women and gender-focused investing. Its $5/month fee is higher than some alternatives, but it offers unique value.
For more tips on managing your investments, check out our beginner guide to investing.
FAQ
What are ESG factors in investing?
ESG stands for Environmental, Social, and Governance. These factors evaluate a company’s ethical impact and sustainability, such as low carbon emissions (environmental), fair labor practices (social), and transparent leadership (governance).
Can I expect good returns from SRI apps?
In most cases, ESG funds perform as well as traditional investments. For example, ESG-focused portfolios tracked by Morningstar showed returns within 1% of non-ESG funds over five years.
Which app has the lowest fees?
Betterment charges just 0.25% annually for its ESG portfolios, which is among the lowest fees available. M1 Finance offers a free account option, but customization might require more effort.
Are these apps beginner-friendly?
Yes, apps like Acorns and Betterment are designed for beginners. Acorns automates investing with no minimum deposit, while Betterment offers hands-off portfolio management for $10 or more.
Can I invest internationally with SRI apps?
Many SRI apps, like Wealthsimple, allow international investments. You’ll find global ESG funds that include companies from Europe, Asia, and other regions.
Sources
Last reviewed: 2026-07-21 by Editorial Team
