Earn Rewards: Sign up now and earn a special reward after your first deposit. See offer details

Now available: New and improved Socially Responsible Investing portfolios. Learn more

<title>Dismiss</title>

Betterment

Save, invest, retire

GET — On the App Store

View
<title>Dismiss</title>
Loading

On Guns and Investing: Our Response

The Betterment SRI portfolio represents a reduction in exposure to weapons manufacturers compared to conventional portfolios. But, it isn’t perfect—and there’s a reason for that.

Articles by Adam Grealish
By Adam Grealish Director of Investing, Betterment Published Mar. 22, 2018
Published Mar. 22, 2018
2 min read

Many have written us in the wake of the recent mass shooting tragedy with a clear and simple question: “Does my Betterment Portfolio contain gun or weapons manufacturer stocks?”

The tough, but honest, answer to that question is “Yes, a little.” At Betterment, we invest in thousands of securities across industries so that our customers can pursue the highest returns for the expected risk. We build diversified portfolios by selecting exchange-traded funds (ETFs) that offer low costs and tax efficiency. In short, we’re buying from the entire market for maximal diversification.

For investors concerned about holding money in gun manufacturer stocks, we offer an alternative: our socially responsible investing portfolio, Betterment SRI.

Betterment SRI (read more about socially responsible investing) reduces investment exposure—in large U.S. companies and international markets—to weapons and gun manufacturers, in addition to other industries and companies that some wish to avoid. It does this by utilizing ETFs that are pre-screened based on certain social, environmental, and governance criteria.

It’s not a perfect solution. It can be difficult to build an all-satisfying SRI portfolio, both because highly rated SRI funds tend to cost more, and because of the interwoven nature of investments, companies, and specific values.

But, it’s a start. We’re proud of our SRI offering and continue to invest in analyzing and optimizing the portfolio to help you seek strong returns, while taking into account the values that you care about.

To those who wrote us recently, and to those who will write in the future, thank you for pushing us to serve you better. It’s because of you that we’re here, and we’ll continue to work to make Betterment the smart home for your investments.

If you’re interested in opening an account with or switching to a Betterment SRI portfolio, visit the Portfolio tab in your account.

Contributing authors

Seth Styers
Senior Copy Manager, Betterment
This article is part of
Original content by Betterment

Recommended Content

View article library

Why Exercising Your Power As An Investor Can Impact Climate Change

Betterment’s new Climate Impact Portfolio lets you support areas of the economy that are working to mitigate climate change, while maintaining a diversified portfolio with low expenses.

CARES Act Overview for 401(k) Plans

The CARES Act provides some temporary relief for 401(k) plan sponsors and their participants. Here's everything you need to know about provisions specific to plans.

Betterment Cash Reserve | High-Yield Account

Explore Cash Reserve, a high-yield cash account designed to help you earn more on the cash you save.

How would you like to get started?

Manage spending with Checking

Checking with a Visa® debit card for your daily spending.

Save cash and earn interest

Grow your cash savings for general use for upcoming expenses.

Invest for a long-term goal

Build wealth or plan for your next big purchase.

Invest for retirement

Set up traditional, Roth, or SEP IRAs to save for the golden years.

See details and disclosure for Betterment's articles and FAQs.