TD Ameritrade introduces new option to robo-advisor clients

Maria Nikolova

The company now offers Socially Aware options for robo-advisor clients, aiming to help investors align their portfolios with their values by considering ESG factors when they invest.

Sustainable development, environment protection and social responsibility may be rather vague concepts for many, but TD Ameritrade is seeking to respond to the needs of those investors that actually do care about these life aspects. Today, TD Ameritrade Investment Management, LLC announces the launch of Socially Aware options for robo-advisor clients in a move that is set to help investors align their portfolios with their values by considering environmental, social and governance (ESG) factors when they invest.

The company notes that there is an increasing appetite from investors, especially from millennials, for investments that offer additional value beyond the financial returns. The company has added five Socially Aware portfolios to its offering. They provide exposure to ESG investing through well-diversified exchange-traded funds (ETFs) that are designed to suit different risk preferences and investing goals. The portfolios are available through Essential Portfolios, TD Ameritrade’s fully digital robo-advisor platform.

ESG investing assesses companies using a scoring system created by Morgan Stanley Capital International (MSCI), a leading provider of market indices. If a company earns a higher score than its industry peers across the three ESG categories (environmental, social, governance), it is assigned a higher ESG rating, a growing factor in the investment decision-making process.

Let’s note that, lately, TD Ameritrade has been working to enhance its new sophisticated technology offering. In August this year, for instance, the company announced the launch of an AI-powered chatbot for Facebook Messenger for Singaporean investors.

TD Ameritrade Singapore Pte. Ltd. is bringing US financial market updates, investor education, research and trading to its retail investors in Singapore through Facebook Messenger. The solution, powered by artificial intelligence (AI) technology and backed by live client service support – will give local retail investors one more way to access the US equity markets and their investments.

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