- Demand for such sustainable investment solutions has increased in recent years, and Wall Street is responding.
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Betterment has taken its first step into one of the hottest areas of investing
Betterment, the largest roboadviser with over $9 billion under management, has taken its first step into the world of sustainable investing.
Betterment, the largest roboadviser with $9.5 billion under management, has taken its first step into the world of sustainable investing.
On Wednesday, the firm said it would start offering iShares DSI, a broad stock market exchange-traded fund that tracks socially responsible companies, as an alternative for the core portfolio’s US large cap exposures.
Alex Benke, vice president of financial advice and investing at Betterment, said the firm had been exploring different options to enter the sustainable investing space for sometime.
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"We were waiting for both the right amount of interest from our clients and the right products," Benke said."Until recently most sustainable products didn't meet our standards."
The US large cap exposures typically make up a chunk of a total Betterment portfolio, meaning the social responsible investing (SRI) fund will only represent a portion of a user's total investment. Users set a target allocation and then have funds directed to various asset classes, raging from US large caps to emerging market bonds.
Still, the new offering reflects the firm's dedication to personalization. The firm said it will add new SRI funds as they become available.
"Our vision is that the service should be built around the customer and it should be very personalized," Betterment's CEO, Jon Stein told Business Insider in a recent interview. "It should be built for their needs."
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