M1 Finance Joins the Socially Responsible Investing Trend
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“M1 believes people should always have their money working for them in a way that aligns with their objectives and values.” ~Brian Barnes, CEO M1 Finance
Regardless of what you call it; socially responsible, impact, sustainable or socially conscious investing, the genre is exploding. The Forum for Sustainable and Responsible Investment reports an 89% increase in socially responsible investing since 2012. The Forum claims that $7 trillion is invested with firms touting environmental, social and corporate governance (ESG) issues. And investors are clamoring to do good with their investment dollars.
M1 Finance Adds Socially Responsible Investing to its Portfolio
M1 Finance is unique among robo-advisors. Not quite a fully automated investment advisor, M1 integrates DIY investing with automated portfolio management, for a low fee. You pick the investments; funds, individual stocks or pre-made M1 portfolios. Invest in your chosen asset percentages and M1 Finance does the rest. The platform invests all new monies according you your pre-decided asset allocation. M1 rebalances to keep your investment amounts in line with the percentages that you chose.
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If you like the idea of crafting an investment portfolio in line with your values, and leaving the management up to a pro, then the M1 Finance – Nuveen partnership with simplified responsible investing might be for you.
The companies included in the Nuveen funds – offered by M1 Finance are selected according to a variety of ESG factors:
- Environmental – Impact on climate change, natural resource use, waste management and emission management.
- Social – Corporate/employee/supplier relationships, product safety and sourcing practices.
- Government – Company’s corporate governance practices and business ethics.
The socially conscious funds typically exclude the vice and controversial industries; alcohol, tobacco, military weapons, firearms, nuclear power and gambling and others, according to the Nuveen website.
Socially Responsible Investing Funds
The funds are culled from widely accepted stock investment styles, with the socially responsible investing overlay.
- NuShares ESG Large-Cap Growth (BATS: NULG)
- NuShares ESG Large-Cap Value (BATS: NULV)
- NuShares ESG Mid-Cap Growth (BATS: NUMG)
- NuShares ESG Mid-Cap Value (BATS: NUMV)
- NuShares ESG Small-Cap (BATS: NUSC)
Pros and Cons of Socially Conscious Investing with M1 Finance
If you’re a DIY investor and choose your own asset allocation, pick your own securities and funds and rebalance when necessary, then you probably don’t need M1 Finance to allocate new monies and rebalance your portfolio.
Yet, if you’re like most investors with a life and a lack of time, then you might enjoy the benefits of Socially Conscious investing with M1 Finance:
- You can design your own portfolio and select the pre-made socially conscious funds.
- Create your socially conscious portfolio and more.
- Add in other types of investments to your M1 Finance portfolio such as bond funds, real estate funds or even a target date or hedge fund allocation.
The beauty of M1 Finance is the perfectly customizable to align with your goals and values. And the socially responsible portfolios make it that much more accessible to do good and make money.
Ultimately, M1 Finance takes care of all of the portfolio maintenance for you.
After selecting your investments, either all on your own or with the guidance of pre-made portfolios, you can get on with your life.
Final Question-How Else Can M1 Finance Help My Investing
In addition to the Socially Responsible portfolios, if you want pre-made investing options, M1 offers these categories of “professionally curated templates”:
- General Investing: Investing based on your risk tolerance.
- Plan for Retirement: Invest for your target retirement date in a portfolio that adjusts to your goals as you age.
- Responsible Investing: Sound financial options for the socially responsible investor.
- Income Earners: Pies focused on dividends and income returns.
- Hedge Fund Followers: Pies that mimic the investment strategies of some of the most successful investors and reputable hedge funds.
- Industries & Sectors: Aerospace to biotech and beyond, invest directly in the industries you believe are future winners.
- Stocks & Bonds: Low-cost pies with a simple balance of two ETFs, focused on stocks and bonds.
- Other Strategies: Additional investment strategies.