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

<title>Dismiss</title>

Betterment

Save, invest, retire

GET — On the App Store

View

Upcoming maintenance: Our website and mobile apps will be unavailable from midnight Saturday to 4am Eastern time on Sunday for routine maintenance.

Introducing Checking

Download our app and gain access to no‑fee, hassle‑free checking.

Introducing Checking! Our no-fee, hassle-free, mobile-first checking account. Learn more

What the CARES Act and market volatility mean for 401(k)s. See resources

<title>Dismiss</title>

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
Creative & Social Media Lead, Betterment

Recommended Content

View All Resources

How to Donate Your Investments to Charity

Learn more about how you can donate shares directly to charity, which can result in tax benefits.

Our SRI Portfolio Just Got Even Better

The proportion of socially responsible funds used in our SRI portfolio is growing.

What is Tax Coordination? How Asset Location Works at Betterment

What is Betterment's approach to asset location? It's called Tax Coordination, and it's a built-in tax optimization strategy for retirement goals at Betterment.

Explore your first goal

Cash Reserve

Our high-yield account built to help you earn more on every dollar you save.

Safety Net

This is a great place to start—an emergency fund for life's unplanned hiccups. A safety net is a conservative portfolio.

Retirement

Whether it's a long way off or just around the corner, we'll help you save for the retirement you deserve.

General Investing

If you want to invest and build wealth over time, then this is the goal for you. This is an excellent goal type for unknown future needs or money you plan to pass to future generations.

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