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.
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.
Betterment SRI Portfolio Strategy
Many investors prefer to invest according to their values. Socially and environmentally conscious customers are able to take advantage of our Socially Responsible Investing (SRI) options.
401(k) Plan Fiduciary: How You Can Mitigate Your Risk
Fiduciary responsibilities can seem daunting and time-consuming. Learn the ins and outs of your responsibilities and which ones you can delegate.
Socially Responsible Investing (SRI) FAQ
Learn more about how you can invest in a way that reduces exposure to companies that are deemed to have a negative social and climate impact.
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