The Broad Impact SRI portfolio focuses on ETFs that rate highly on a scale that considers all three environmental, social and governance (ESG) pillars. It seeks to give 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 replace the Core portfolio’s market-capitalization based funds with SRI alternatives in four asset classes: U.S. Stocks, Emerging Market Stocks, Developed Market Stocks, U.S. High Quality Bonds, and U.S. Corporate Bonds.
Additionally, stocks of companies deemed to have strong social responsibility practices (such as Microsoft, Google, Procter & Gamble, Merck, CocaCola, Intel, Cisco, Disney, and IBM) may make up a larger portion of the SRI portfolio than they do for Betterment’s Core portfolio. To learn more about the portfolio construction of the Broad Impact portfolio, review our full SRI portfolio methodology.