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OpenInvest Review [2023]: A Deep Dive Into Impact Investing


In a world that's becoming increasingly conscious of the societal and environmental impact of our choices, the desire to invest in line with personal values is growing. From climate change to social justice, many of us are seeking ways to make a positive impact with our money. This shift in attitude is where OpenInvest comes in. As a platform designed to democratize impact investing, OpenInvest enables you to align your portfolio with your values, without compromising on financial returns.

In this comprehensive OpenInvest review, we delve deep into the platform's offerings, cost, user experience, and its unique approach to ESG investing. Whether you're a beginner or a seasoned investor, this review aims to answer all your burning questions and help you decide if OpenInvest is the right robo-advisor for you.

What Is OpenInvest and How Does It Stand Out?

OpenInvest is a unique platform that stands out in the crowded robo-advisor marketplace. The company began with a mission to make investing more accessible, transparent, and aligned with personal values. OpenInvest's founders, innovators with deep roots in finance and technology, aimed to offer an alternative to traditional investment platforms, which often lacked personalization and transparent ESG options.

OpenInvest Features: Unpacking The Offering

OpenInvest offers a range of features to ensure a customizable investing experience. For example, one key element of the OpenInvest model is the ability to create custom portfolios that reflect individual values and investment goals. From green technologies to gender equality, there are options to suit a range of socially responsible investment interests.

Beyond the custom portfolios, OpenInvest stands out in the realm of ESG investing, offering an array of options for investors who want their investments to reflect their values.

OpenInvest's commitment to this form of investing goes beyond the norm, providing the transparency that socially conscious investors need.

Automatic rebalancing is another significant feature that OpenInvest provides. This feature ensures your portfolio maintains its intended asset allocation over time, providing you peace of mind without the need for continuous manual adjustments.

Navigating OpenInvest: A Beginner's Guide

Getting started with OpenInvest is straightforward. The account creation process is intuitive and well-guided, helping beginners set up their account with ease. Once the account is set up, making investments is as simple as selecting the preferred ESG issues and depositing the funds. OpenInvest's user-friendly account management interface allows for easy navigation and account adjustments.

OpenInvest Pros and Cons: Weighing The Trade-Offs

As with any platform, OpenInvest comes with its advantages and disadvantages. One of the main advantages of OpenInvest is the highly personalized portfolio that aligns with individual ESG goals. Additionally, the automatic rebalancing feature is a boon for those who prefer a hands-off approach to maintaining their portfolio.

However, potential disadvantages might include higher fees compared to some other robo-advisors, and a lack of certain asset types for those interested in a broader variety of investment options.

What Does OpenInvest Cost?

OpenInvest's pricing structure is transparent and straightforward, though it might be slightly higher than some other robo-advisors. The company charges a management fee, which is a small percentage of the assets under management.

OpenInvest User Experience: Simple and Intuitive

One of the most commendable features of OpenInvest is its user-friendly interface. Both the web platform and the mobile application are designed with an intuitive user experience in mind. Features are easy to locate, and the process of managing investments is seamless.

OpenInvest ESG Investing
OpenInvest ESG Investing

OpenInvest's Impact on ESG Investing

OpenInvest has played a significant role in the ESG investing landscape. It's one of the few platforms that offers such a level of customization and transparency when it comes to socially responsible investments.

Comparing OpenInvest to Other Robo-Advisors

OpenInvest stands out in the crowded robo-advisor market thanks to its focus on customizable ESG investing. However, it's worth comparing it to other platforms to see how it stacks up.

OpenInvest vs Acorns

Acorns is a popular robo-advisor known for its round-up feature, which automatically invests spare change. While this can make investing easy and automatic, Acorns lacks the ESG focus that sets OpenInvest apart.

OpenInvest vs Betterment

Betterment is another leading robo-advisor that offers a wide range of features including tax-loss harvesting and goal-based investing. However, while Betterment does offer a socially responsible investing portfolio, it doesn't provide the same level of ESG customization as OpenInvest.

OpenInvest vs E-Trade

E-Trade is a well-known online brokerage that also offers robo-advisor services. E-Trade stands out for its wide range of investment options, including stocks, bonds, ETFs, and mutual funds. However, it lacks OpenInvest's unique ESG-focused approach.

OpenInvest vs Fidelity

Fidelity is a major player in the investment industry, offering a wealth of services including a robo-advisor platform. Fidelity's robo-advisor offers a broad range of investment options and a competitive fee structure, but doesn't provide the same level of ESG customization as OpenInvest.

OpenInvest vs Wealthfront

Wealthfront is another popular robo-advisor known for its tax-efficient investing strategies and educational resources. While Wealthfront offers a wide range of investment options, it doesn't provide the ESG customization that is central to OpenInvest's platform.

Making the Decision: Is OpenInvest the Right Choice for You?

Deciding whether OpenInvest is the right platform for you ultimately depends on your individual investment goals and personal values. If socially responsible investing is a high priority for you and you're willing to pay slightly higher fees for a platform that supports ESG customization, OpenInvest could be an excellent fit.

If you're primarily interested in minimizing fees or if you need access to a broader range of account types, other robo-advisors may be more suitable. As with any financial decision, it's important to do your own research and consider your own needs and circumstances before making a choice.

Final Thoughts on OpenInvest

In conclusion, OpenInvest offers a unique proposition for investors looking to align their portfolio with their personal values. While it has its limitations, including slightly higher fees, these may be outweighed by the ability to contribute towards ESG goals while investing for your financial future.

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