How Does Swell Differ From a Robo Advisor?

For those looking to become impact investors, Swell's here to help you navigate the choppy waters.

There are many options for people who want to use their investments to support companies that have a positive impact on the world. Some investors work with financial advisors, others use robo advisors. Now, there is Swell - a new approach to impact investing.

Here’s how they stack up:

Financial Advisors

Financial Advisors are professional investors who manage your money on your behalf. A financial advisor might help manage investments, broker the sale and purchase of stocks and funds or create a comprehensive estate and tax plan.

Use a Financial Advisor if:
(1) Direct human contact is important to you
(2) You want more control of your investment decisions
(3) You’re not comfortable with the facelessness of robo advisor
(4) You want to know exactly where your money is going 

The Pros
— High level of control
— Personal touch and communication

The Cons
— Fees can be expensive
— Can require a higher initial investment

 Robo Advisors

Robo Advisors are fully automated online investment platforms. Everything is taken care of - they build an investment strategy for you based on risk tolerance and your investment objective, manage and maintain your portfolio, and provide you with a platform for you to see all of your investments.

Use a Robo Advisor if:
(1)You have a small amount to invest
(2) You want lower investment fees
(3) You’re comfortable letting someone else completely take the reigns
(4) You’re comfortable with no direct human contact

The Pros
Low minimum investment needed
— Lower fees
— Minimal effort to get started

 The Cons
Loss of control into your investments
— Little to no personal support when things get scary


 Swell Investing

Swell is an online investing platform that strives to help people invest in industries and companies that are working to make the world a better place. At Swell, we believe that the companies solving today’s biggest challenges will be tomorrow’s industry leaders. Our approach is all about building a better future, identifying growth potential, and creating positive impact.

Unlike many online investment advisers, Swell does not use an algorithm to manage its client accounts. Swell uses a “rules-based” investment approach designed to identify companies that are making a positive impact and addressing global challenges.

Swell is for you if:
(1) You are conscious about how your money impacts the world and you want to use your wealth to support positive social change, and/or
(2) You feel that socially responsible and progressive companies are ahead of the curve and have inherent advantages heading into the future.

We believe in both of those reasons, so for us it feels like a potential win-win. We hope it is for you too.

To learn more about Swell’s investment approach, visit our Approach Page.

Topics: The Stack Up

Amberjae Freeman

Amberjae Freeman

Amberjae brings more than a decade of experience in public and private sector research to her role at Swell, including a stint at the Royal Bank of Canada, where she specialized in ESG investing. She’s also spent time working in developing countries with cash-strapped NGOs—an experience that led her to believe that financial markets should be used as a vehicle for social and environmental change.

 Disclosure can be found in the footer below.

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