Investing > Best Wealth Management Software
Ethic is a technology-driven asset manager committed to accelerating the global transition to sustainable investing and addressing the defining issues of our time. Founded in 2015, Ethic has built market-leading technology to automate the creation of sustainable passive equity portfolios. The firm helps financial advisors provide tangible value to their clients, differentiating its solution by way of its:
- Impact reporting: Ethic helps advisors clearly demonstrate and quantify the impact that clients’ investments are having on the issues they care about
- Portfolio health check, which analyzes clients’ underlying holdings to identify any blind spots that are misaligned with the client’s express values.
- User experience: Ethic’s clean, user-centric interface makes it intuitive for advisors, enabling them to speak authoritatively with clients about their holdings and their explicit environmental, social and governance concerns.
- Customization: Ethic uses direct indexing to enable the application of various sustainability filters, reflecting a broad swath of principles and values.
- Multi-factor optimization: Ethic implements institutional-quality, multi-factor optimization to create passive equity portfolios, minimizing benchmark tracking error. Factor tilting helps to offer the diversified exposures clients desire.
- Strategy backtesting: Ethic alleviates concerns about financial performance with its innovative strategy back-testing tool, allowing advisors to calculate the “clean” strategy’s estimated tracking error/historical performance against the selected benchmark
With Ethic, advisors are empowered to forge deeper connections with their clients, offering them unique portfolios that align their personal values with their financial goals. In 2019, the firm announced a Series A that saw participation from traditional and sustainable finance leaders, including Fidelity Investments, Nyca Partners, Sound Ventures, Urban Innovation Fund, Kapor Capital, and more. It also entered into significant partnerships with Fidelity Investments and Dynasty Financial Partners to facilitate the creation of custom portfolios for advisors of both firms, further accelerating the transition to sustainable investing.