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The best robo-advisors for LGBTQ+ investors
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Until fairly recently, most investing platforms looked the same. There’s a simple reason why: the investing audience was also mostly the same. Now, however, the investing world looks a little different. Everyone wants a chance to save for their future.
The LGBTQ+ community is just one example of a community that has never really seen itself represented in the investing world. Thankfully, that’s changing fast.
There are now a variety of investment options with the LGBTQ+ community specifically in mind, one of which is robo-advisors. There are numerous robo-advisors that focus on socially responsible investing, which includes investments in companies that are actively supporting the LGBTQ+ community. This guide will look at a few of our favorites.
Best robo-advisors for LGBTQ+ investors at a glance
Today, we’ll cover 5 robo-advisor options that LGBTQ+ investors should consider.
- Ellevest – Best overall for LGBTQ+ investors
- Betterment – Best for no investment minimums
- Wealthfront – Best for customizable portfolios
- Ally Invest – Best for ease-of-use
- EarthFolio – Best for sustainable investing
Ellevest
- Minimum investment: None (but may vary depending on your investment choices)
- LGBTQ+ investment option(s): Intentional Impact Portfolios
Why we chose Ellevest: Ellevest is, by far, one of the most openly supportive robo-advisors on the market. This women-owned company has laid out clearly how they support LGBTQ+ folks. First, their Intentional Impact Portfolios only invest in companies that are taking action against systems that have hurt marginalized groups, like the LGBTQ+ community.
You can set your Ellevest account up in just five minutes, and the Impact portfolio option offers up to 53% of your portfolio invested in ESG and impact funds. You’ll pay no advisory fee, but you will have to choose a membership plan that ranges from $1 – $9.
Pros
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Ellevest supports many diverse corporations
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They focus on supporting women investors (but anyone can invest with Ellevest)
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There’s no minimum deposit required to open an account
Cons
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You will need to pay a monthly fee to invest through Ellevest
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Ellevest doesn’t really believe in tax-loss harvesting
Betterment
- Minimum investment: none
- LGBTQ+ investment option(s): Social Impact portfolio
Why we chose Betterment: Betterment has long supported SRI and ESG investing. Their Social Impact portfolio focuses on companies that support underserved groups such as the POC communities and LGBTQ+ communities. Two of the funds included in the portfolio are Impact Shares' NAACP Minority Empowerment ETF (NACP) and State Street Global Advisors' Gender Diversity Index ETF (SHE).
To open a Betterment account, you will need to pay a 0.25% annual fee, but you’ll have your portfolio entirely automated. All you’ll need to provide is the answers to a few questions when you sign up.
Pros
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Has a long history of being a successful robo-advisor
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Offers a large number of SRI portfolio options
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You can invest in unique investments like crypto
Cons
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You’ll pay a relatively high annual fee
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To access the Premium plan, you will need at least $100,000 to invest
Wealthfront
- Minimum investment: $500
- LGBTQ+ investment options: SRI portfolios
Why we chose Wealthfront: Wealthfront takes pride in balancing their SRI portfolio with real-world returns. They don’t want you to sacrifice your returns to follow your values and vice versa. And it focuses on excluding the very companies that harm the LGBTQ+ community most. Plus, Wealthfront doesn't include any investment options that deal in firearms, controversial weapons, tobacco, thermal coal, or oil sands. Every pick follows Environmental, Social, and Governance (ESG) measures.
If you don’t like the picks Wealthfront chooses for you, you can always pick your own. They have additional options for minority empowerment and gender diversity, so you can really make your portfolio exactly what you want.
Pros
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A large number of ESG/SRI options to choose from
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They apply tax-loss harvesting to all their investments
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One of the easiest sign-up processes
Cons
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There’s an annual advisory fee of 0.25%
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No fractional shares, so smaller time investors may want to look elsewhere
Ally invest
- Minimum investment: $100 for robo-advisor
- LGBTQ+ investment option(s): SRI portfolios
Why we chose Ally: Ironically enough, the investment company named Ally doesn’t explicitly say that they offer any LGBTQ+-specific investments. It's still a strong competitor nonetheless. Ally offers a fully managed SRI portfolio that only includes companies who have shown environmental and social responsibility. Plus, their platform is one of the easier ones to use.
Ally’s Self-Directed Trading option is where you can customize your investment choices a bit more. You can build your portfolio out of Impact funds, ESG ETFs, or by certain themed funds.
Pros
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Low minimum investment to get started
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Entire portfolio option made up of SRI investment options
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Clean UI that’s easy for any investor to use
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24/7 customer support
Cons
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Their self-directed trading option offers more ESG options than their robo-advisor
EarthFolio
- Minimum investment: $25,000
- LGBTQ+ investment option(s): All of Earthfolio's portfolios focus on ESG investing
Why we chose EarthFolio: EarthFolio is the first robo-advisor specifically dedicated to sustainable and responsible investing. As you can probably tell from their name, they do have a special dedication to environmental concerns, but they also make it a priority to only support investments that take action to help LGBTQ+ communities.
Unfortunately, EarthFolio has a steep minimum investment requirement of $25,000 and a high annual fee of 0.50%. However, for investors who want much of their portfolio to be made up of ESG options, the cost may be worth it.
Pros
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All investments in your EarthFolio portfolio have SRI principles in mind
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They provide an estimated portfolio performance so you can see if it aligns with your goals
Cons
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A large minimum deposit required
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Very high annual fee compared to their competitors
What LGBTQ+ investors need to look for in a robo-advisor
LGBTQ+ investors often look at their investments differently, because we want to invest in companies that actually support our community. When looking for the best robo-advisor, make sure your company of choice has the following:
SRI investing
SRI investing is all about social responsibility. Whether you’re looking for companies that support the environment, POC communities, or the LGBTQ+ community, investments that follow SRI principles are the ones you’ll want to stick with.
Easy sign-up
Going through an hour-long sign-up process is a thing of the past. With so many well-designed and speedy options out there, don’t settle for one that’s going to waste your time. Each option on this list has a relatively easy sign-up process that takes a matter of minutes.
Low minimum investment requirement
The amount you’re willing to add to an investment account right away is an entirely personal decision. That said, the lower the minimum investment, the better. That way, if you set up an account and find you don’t really like the platform, you can switch to one that works better for your needs.
You can also read our post on how to invest with little money for more beginner-friendly investing ideas.
A positive reputation
We live in a digital age where any wrongdoings done by a company are all over the Internet. Bad for companies, good for you, the consumer. Do a quick Google search on the company of your choice and make sure they don’t have a negative reputation, especially when it comes to social issues. Even if a company offers SRI investments, if they treat their LGBTQ+ employees unfairly, they’re not the best option to invest in.
The bottom line
LGBTQ+ investors looking for responsible investing options have a variety of robo-advisors to choose from that offer supportive investments. Most robo-advisors that have an SRI or ESG option will include funds that promote inclusion and diversity, and exclude those that have a negative history or who produce products that harm marginalized groups.
As with any investment decision, do your research and look into specific investments the company offers. Make sure their investments and employment practices are beneficial to communities like the LGBTQ+ community.
Further reading for LGTBQ+ Investors:
- LGBTQ+ friendly investments: What they are and how to find them
- How to find LGBTQ+ supportive financial advisors
Chris Murray was formerly a freelance contributor with Moneywise.
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