Best Socially Responsible Investment Apps of January 2024

Our experts answer readers' investing questions and write unbiased product reviews (here's how we assess investing products). Paid non-client promotion: In some cases, we receive a commission from our partners. Our opinions are always our own.

With sustainable investing — whether through socially responsible investing (SRI) or environmental, social, and governance (ESG) investing — you can target companies whose values align with your own and use certain criteria like ESG scores to determine how successful stocks or funds will be in the long haul.

Like many of the best free stock trading apps, you can open a brokerage account with a bank or investment platform that offers sustainable investing or ESG investing portfolio options.

Best Socially Responsible Investing Apps

• IMPACT - Product Name Only: Best overall for ESG investing
• Betterment Investing - Product Name Only: Best for automated investing
• Sustainfolio - Product Name Only: Best for sustainable investors of all types
• Ellevest - Product Name Only: Best for career planning and goal-driven investing
• Charles Schwab - Product Name Only: Best for self-directed traders
• Wealthfront Investing - Product Name Only: Best for tax-loss harvesting
• M1 Finance - Product Name Only: Best for both DIY and hands-off investors
• Ally Invest - Product Name Only: Best for Ally users

Whether you're interested in investing in stocks and bonds or finding the best cryptocurrency exchanges, there's an investing platform for you. Several investment platforms offer sustainable options. You may be able to invest directly in SRI portfolios, trade ESG funds, or sift through sustainable stocks, depending on the platform. We've highlighted the best sustainable investing options below.

Here are the best socially responsible investing apps as picked by Insider's editors.

Compare the Best Socially Responsible Investing Apps

Socially Responsible Investing Frequently Asked Questions (FAQs)

What is socially responsible investing?

Socially responsible investing is when you invest in companies dedicated to making positive social and ethical changes. There are multiple ways to target socially responsible investments. You can either invest in individual stocks of companies committed to the social cause you support or in socially responsible/ESG ETFs or mutual funds.

What is an example of a socially responsible investment?

An example of a socially responsible investment is buying stock in a business or institution engaged in environmental sustainability and alternative energy practices. These institutions focus on developing sustainable (aka clean) energy, such as with wind or solar.

Are SRI portfolios worth it?

This depends on your investing goals. SRI portfolios are ideal options for those who want to make a positive difference with their investments. Investment apps like IMPACT, for instance, even give users the choice to filter out companies with business practices that may align with their values (e.g., animal testing, high water use, and more).

What are the characteristics of a socially responsible investment?

Characteristics of a socially responsible investment are often shares of a company or business that positively impact the community. Positive impacts can be political, social, or environmental actions that often coincide with current trends.

What is The Difference Between ESG and Socially Responsible Investing

According to S&P Global, investors who practice ESG investing examine how environmental, social, and governance factors can affect the performance of companies they're either investing in or considering for investment. So, this investment approach strictly uses ESG criteria as a way to evaluate how sustainable companies/investments are.

With socially responsible investing, however, investors focus more on the impact associated with the companies and whether those companies' practices align with their values. In other words, a company's ethics become equally (if not more) important as generating hefty returns.

What is an example of social investing?

If you're looking to make socially responsible investments, you'll want to avoid investing your funds in companies that produce addictive substances (like tobacco and alcohol) or businesses participating in animal exploitation, gambling, and the distribution of weapons.

Instead, you'll want to find companies that align themselves with environmental causes, sustainability, social justice, or similar movements. For example, the ClearBridge Sustainability Leaders Fund is one of the top socially responsible investing funds available. Its top holdings are Costco, Apple, Microsoft, and Alphabet.

Why You Should Trust Us: Our Expert Panel For Socially Responsible Investment Apps

We interviewed the following investing experts to see what they had to say about socially responsible investment apps.

• Sandra Cho, RIA, wealth manager, and CEO of Pointwealth Capital Management
• Tessa Campbell, Investment and retirement reporter at Personal Finance Insider

What are the advantages/disadvantages of investing through a socially responsible investment app?

Sandra Cho:

"The advantages include having an app that is built for socially responsible investing with necessary scores, analysis, and educational resources at your fingertips. These apps consolidate all pertinent information into one viewable system for maximum efficiency and information availability as the user.

"These apps also offer the ability to dig deeper into funds and stocks to further evaluate their investment philosophy and history.

"The main disadvantage is that many of these platforms charge a fee. This fee covers the platform's cost of research, analysis, and other operating expenses. Compared to a standard platform to a standard platform in which investors can open an account for free (i.e., Vanguard), this is a significant disadvantage.

"The other disadvantages are due to the paramount focus on socially responsible analysis by the app, which can de-emphasize other characteristics of investments that are equally important (i.e., historical returns, future company guidance, etc.)."

Tessa Campbell:

"The main advantage of socially responsible investing apps is that you can support businesses with morals and ethics that align with your own views. Rather than investing in large tech companies or businesses participating in unethical business practices, you can make a positive impact by supporting institutions dedicated to sustainability, community outreach, environmental conservation efforts, and ethical business practices.

"The disadvantage is that you may not get the most you can out of your investment portfolio. Just because a business has good morals and ethical business practices doesn't guarantee it will have high rewards. There's still a possibility that your investments will fail or produce smaller returns compared to other sectors of the market."

Who should consider opening an account through a socially responsible investment app?

Sandra Cho:

"An investor that holds socially responsible characteristics as their top priority when investing and has a limited amount of time to conduct research on their own should consider potentially opening an account through a socially responsible investment app. For this type of investor, the fee for the platform is worth it, as the investor will save hours of time not having to do the research on their own."

Tessa Campbell:

"You should consider opening an account through a socially responsible investment app if putting your investment dollars into companies that conduct business in wats the benefit society is a priority for you. Luckily, more online brokerages and investment platforms are offering socially responsible investing as an option for taxable brokerage accounts and even IRAs."

Is there any advice you'd offer someone who's considering investing through a socially responsible investment app?

Sandra Cho:

"I would make sure that socially responsible characteristics are of paramount importance to them. I would also make sure that they understand the fees associated with the app that they choose and how that can impact long-term returns.

"Lastly, I would encourage them to take their time when going through the reports and analysis available. There will be a lot of information, and it will take time to synthesize it all."

Tessa Campbell:

"Although socially responsible investing apps offer an accessible way for investors to support ethical business practices, environmental conservation efforts, and similarly related issues, it's still in your best interest to research into the institutions you're investing in and ensure their values align with yours. "

Socially Responsible Investing App Reviews

Best Socially Responsible Platform for ESG Investing

IMPACT

IMPACT is an Interactive Broker-owned investment app that lets you choose from 13 different ESG categories (consumer safety, clean air, gender equality, ocean life, and more). Once you select the categories, IMPACT evaluates your portfolio to determine how well it aligns with your selected values.

If necessary, you can always use IMPACT to locate other companies that better fit your sustainable investing goals. The platform even offers simulated trading for those who want to practice trading strategies without taking on any risk.

IMPACT currently offers commission-free stocks and ETFs, and most of its mutual funds also come without commissions. Crypto trading is also available through Paxos Trust Company.

What to look out for: Though IMPACT lets you analyze your portfolio based on ESG criteria, it doesn't offer automated investing. If you'd like to take this route, you can do so through Interactive Brokers' robo-advisor, Interactive Advisors, or another automated investing platform.

Best Socially Responsible Platform for Automated Investing

Betterment Investing

As an automated investing platform, Betterment Investing - Product Name Only handles your entire investment process. The robo-advisor offers two main accounts: the digital and premium plans. You can set up its SRI portfolios through either account. It currently offers three socially responsible portfolios:

• Climate Impact: These portfolios invest in ETFs with companies that have lower carbon emissions. Betterment also says it targets global green bonds supporting projects dedicated to improving pollution control, green building, climate adaptation, and energy efficiency.
• Social Impact: This option best aligns with investors who want to support companies dedicated to gender and racial equity.
• Broad Impact: The Broad Impact portfolios offer a more well-rounded approach to socially responsible investing. They target all ESG elements, so your money goes toward funds that support the environmental, social, and governance aspects.

You can also work with a financial advisor if you want a bit more guidance, but you'll have to pay extra to utilize these services if you have the digital plan. Financial advice is included in the premium plan.

What to look out for: Betterment only offers ETFs and cryptocurrencies, so you'll need to consider other platforms if you'd like to invest in mutual funds or other assets. Plus, if you don't have the premium plan but would like to consult a financial advisor, it'll cost you $299 to $399 per session.

Betterment review

Best Socially Responsible Platform for Sustainable Investors of All Types

Sustainfolio

Sustainfolio is an automated investing platform that primarily focuses on impact and ESG investing. It uses Charles Schwab's automated account — Schwab Intelligent Portfolios — to power its platform, so it could be particularly useful for existing Schwab clients who want a more in-depth approach to socially responsible investing.

Sustainfolio also strictly uses ETFs (such as iShares, Nuveen, and Wisdomtree) in its portfolios, and it regularly screens user portfolios following ESG criteria. It currently offers four portfolios: the Core ESG portfolio, Environmental Impact portfolio, Social Impact portfolio, and Governance Impact portfolio.

In addition, its account types include individual, joint, trust, IRA, and IRA and 401(k)/403(b) rollovers.

What to look out for: Sustainfolio's minimum requirement ($5,000) and 0.50% management fee are relatively high, compared to the other platforms listed in our roundup.

Best Socially Responsible Platform for Career Planning and Goal-driven Investing

Ellevest

Ellevest - Product Name Only is a popular robo-advisor that offers personal investment accounts, IRAs, and financial planning, all factoring in women's longer lifespans and pay gaps. Like many of the automated investing platforms in this guide, it provides both standard portfolios and socially responsible portfolios.

Its socially responsible option — the Ellevest Impact Portfolio — aims to achieve positive social impact through three key areas:

• Women in leadership: These Impact portfolios target companies with more women in leadership and policies that advance women, according to Ellevest.
• Community development: This option is great for investors who want to focus on funds that support things like community service and affordable housing.
• Sustainable practices: These portfolios best suit those who want to invest in companies dedicated to sustainable and ethical practices.

When it comes to asset allocation in Ellevest's Impact portfolio, the robo-advisor invests up to 53% of the portfolio in ESG and impact funds. As for fees, fund expense ratios range from 0.13% to 0.19%.

What to look out for: You won't be able to access joint or custodial accounts at Ellevest, and the robo-advisor doesn't offer tax-loss harvesting.

Ellevest review

Best for Self-directed Traders

Charles Schwab

Charles Schwab - Product Name Only offers just about everything — including self-directed brokerage accounts, automated investing accounts, custodial accounts, managed portfolios, and IRAs — for every type of investor. If you're set on impact investing, you'll have three key options:

• ETFs: You can choose from more than 200 ESG mutual funds, including the Schwab Ariel ETF, a fund that invests in equities that meet ESG standards.
• Mutual funds: Schwab also offers well over 200 mutual funds.
• Separately managed accounts: If you're looking for more guidance, you can also work with a financial advisor to build a portfolio that aligns with your socially responsible investing goals.

An alternative route Schwab highlights is to invest in individual stocks that you feel align with your values.

What to look out for: You'll have to pay more to utilize financial advisor guidance. Minimums for its separately managed accounts start at $100,000 for equities.

Charles Schwab review

Best for Tax-loss Harvesting

Wealthfront Investing

Wealthfront Investing - Product Name Only is best for those who don't want to make the day-to-day trading decisions in their account. Plus, as long as you meet its $500 minimum requirement and 0.25% advisory fee, you can take advantage of the robo-advisor's SRI portfolios.

Like its standard Classic portfolios, Wealthfront's SRI portfolios give you access to features like portfolio rebalancing, dividend reinvesting, and tax-loss harvesting. The platform also says it uses Blackrock funds that track socially responsible indices defined by MSCI.

When it comes to fund fees, expense ratios can range from 0.05% to 0.29%.

What to look out for: You won't be able to take advantage of advisor-managed automated accounts.

Wealthfront review

Best for DIY and Hands-off Investors

M1 Finance

When it comes to investing, M1 Finance offers the best of both worlds. You can either invest on your own, or utilize one of its professionally-built portfolios. The same goes for its socially responsible offerings.

You can build your blend or collection of sustainable stocks or ETFs using M1 Finance's "pie" feature or invest in pre-made socially responsible investments. One option is to use its Community Pies. These portfolios target companies led by black, female, AAPI, LGBTQ+, and Latine executives.

The community pies selection also lets you invest in companies committed to sustainability through the Sustainability Community Pie. And you'll additionally have access to domestic and international pre-made pies.

What to look out for: M1 Finance primarily offers stocks and ETFs but doesn't offer human advisor support.

M1 Finance review

Best for Ally Users

Ally Invest

Ally Invest offers both self-directed and automated sustainable investing for its users. If you want to take the DIY route, you'll be able to take advantage of ESG ETFs, Impact funds, and thematic funds. Ally currently offers more than 80 sustainable ETFs, so you'll have several options to choose from when building your portfolio.

On the automated investing end, you can invest in an SRI portfolio that Ally manages for you. You'll only need $100 to get started, and you won't have to pay any advisory fees. Ally says it invests your money into companies that conduct business in a socially and environmentally conscious way.

What to look out for: Ally Invest offers thousands of mutual funds, but none of them are no-transaction-fee funds.

Ally Invest review

Other Sustainable Investment Platforms We Considered

• Fidelity Investments - Product Name Only: Fidelity supports all types of investors. When it comes to ESG and socially conscious investing, it offers multiple options. These include thematic sustainable mutual funds, ETFs, and sustainable stocks. However it may not be the best choice for hands-off investors in search of a wide range of SRI portfolio options.
• Earthfolio: Earthfolio is an automated platform that solely promotes sustainable investing. It offers personal asset allocation and ongoing portfolio monitoring f0r each client, and it uses a vast range of ESG funds. The only downside is that you'll be responsible for a $25,000 account minimum and 0.50% annual fee.
• E*TRADE - Product Name Only: With E*TRADE's automated account, you can tailor your portfolio so that it follows a socially responsible investing strategy. E*TRADE will then invest in companies that consider socially responsible criteria. One drawback is that the platform doesn't offer tax-loss harvesting.
• Axos Invest Managed Portfolios - Product Name Only: Axos Invest's managed portfolios are quite versatile, allowing investors to invest toward multiple goals and targets while offering access to socially responsible investments. One thing to consider is that the platform doesn't offer joint or custodial accounts.
• Wells Fargo Intuitive Investors - Product Name Only: Wells Fargo Intuitive Investors offers two investment styles for investors to choose from: Globally diversified or sustainability-focused investment options. Wells Fargo's sustainability-focused investments are a blend of low-cost assets that emphasize environmental, social, and governance processes.
• Acorns Invest - Product Name Only: Acorns is an online brokerage best for beginners looking for an easy-to-use interface. Passive investors can benefit from Acorns' robo-advisor, which customizes a diverse portfolio of ETFs based on your preferences. You can choose to invest in either the Core or socially conscious portfolios for ESG investing. Acorns isn't the best option for advanced or active traders, and it can cost up to $9 per month.

Why You Should Trust Us: Our Methodology

We used Insider's rating methodology for investing platforms when reviewing more than a dozen sustainable investing platforms to find the best options for ease of use, low fees, and flexible investment choices. Our list contains a mix of self-directed platforms and robo-advisors, so both DIY investors and hands-off individuals are considered in our picks.