Introduction: What Was BetterThisWorld?
BetterThisWorld was an early impact-investing robo-advisor that helped people invest their money according to ethical values like climate action and social justice. Although the platform shut down around 2019–2020, it played a key role in popularizing values-based investing and helped pave the way for today’s ESG and ethical finance platforms.
The BetterThisWorld Vision: Making Money a Force for Good
What Was the Core Proposition?
BetterThisWorld wasn’t just another investment app. It was a values-based investing platform that allowed users to build socially responsible portfolios tailored to specific causes they cared about. The process was simple and powerful:
- Choose Your Values: Users selected from key impact themes like Climate Action, Social Justice, Gender Equality, and Clean Water.
- Get a Custom Portfolio: The platform’s algorithm would then build a diversified ETF portfolio comprised of companies and funds screened for positive performance in those areas.
- Invest and Track Impact: Users could invest and monitor both their financial returns and a qualitative report on the impact their money was helping to generate.
This model tapped directly into the growing demand for ESG investing and sustainable finance, moving beyond simple exclusion (avoiding “sin stocks”) to proactive inclusion of solution-oriented companies.
The Technology: A Robo-Advisor with a Conscience
As a robo-advisor, BetterThisWorld automated portfolio management, rebalancing, and tax-loss harvesting. What set it apart was its layer of values-based screening and thematic portfolio construction. It aimed to prove that you didn’t have to sacrifice returns to invest ethically—a key question for many new to impact investing.
Why Did BetterThisWorld Shut Down? Understanding the Challenges
Despite its innovative vision and early adopter enthusiasm, BetterThisWorld ceased operations and its website was taken offline. The platform’s shutdown around 2019-2020 highlights the challenges in the fintech space, particularly for niche, mission-driven startups.
Key Factors Likely Contributing to Its Closure:
- High Customer Acquisition Costs: Educating the mass market on impact investing is expensive. Competing for attention against giant traditional brokerages and flashier fintech apps proved difficult.
- Intense Competition: The space grew crowded quickly. Larger players like Schwab and Fidelity began offering ESG portfolios, while other impact-focused startups like OpenInvest and Ethic also vied for market share.
- The “Sustainability” of the Business Model: As a small robo-advisor, management fees on assets under management (AUM) may not have scaled sufficiently to cover technology, compliance, and marketing costs.
- Reported Acquisition Talks: Industry chatter suggested potential acquisition talks that ultimately did not materialize, which can destabilize a small company’s runway.
The Legacy: BetterThisWorld’s true impact was in proving there was a real demand for user-friendly, values-driven investing. It helped pave the way for the options available today.
How to Achieve the “BetterThisWorld” Mission Today: Modern Alternatives
If you’re searching for “money BetterThisWorld,” your core intent is likely: “How do I invest my money to make a positive impact?” Fortunately, the landscape for ethical investing has matured significantly. Here are the best current alternatives to fulfill that original promise.
Top Impact Investing Platforms & Robo-Advisors (2024)
- Carbon Collective
- Best For: Climate-focused investors.
- How it’s similar: Builds portfolios focused specifically on solving the climate crisis, using low-cost, diversified ETFs. Very thematic, like BetterThisWorld.
- Ethic
- Best For: High-touch, customized ESG portfolios.
- How it’s similar: Offers direct indexing, allowing for deep personalization of values screens. Caters to both individual and advisor-managed accounts.
- EarthFolio
- Best For: A simple, all-in-one sustainable mutual fund.
- How it’s similar: Provides a single, globally-diversified fund with rigorous ESG screening, simplifying the investment decision.
- Schwab ESG Portfolios / Fidelity ESG
- Best For: Investors who prefer a major, established brokerage.
- How it’s similar: These giants now offer proprietary ESG-focused robo-advisor services, providing trust and scale.
DIY Approach: Building Your Own Thematic Portfolio
For the hands-on investor, you can replicate the BetterThisWorld model using a standard brokerage account:
- Select ESG ETFs: Choose funds like NUBD (Nuveen ESG US Aggregate Bond ETF), ESGU (iShares ESG Aware MSCI USA ETF), or thematic ETFs like ICLN (iShares Global Clean Energy ETF).
- Use Screening Tools: Platforms like M1 Finance allow you to build “pies” of stocks and ETFs, letting you create and automate your own thematic, ethical portfolio.
Key Questions Answered: Impact Investing in 2024
1. Does Ethical Investing Mean Lower Returns?
Not necessarily. A large body of research shows that ESG funds have performed competitively with, and sometimes outperformed, traditional funds over the long term, especially as sustainability risks (like climate regulation) become financially material. The old myth of a “returns penalty” for ethics is fading.
2. How Do I Avoid “Greenwashing”?
This is a critical concern. To ensure your money is having real impact:
- Look for Transparency: Platforms should clearly disclose their screening criteria and portfolio holdings.
- Check for Third-Party Verification: Look for mention of data from MSCI ESG Research, Sustainalytics, or ISS ESG.
- Ask About Engagement: Do the fund managers actively vote proxies and engage with companies to improve practices?
3. What’s the Minimum Investment?
This varies. Dedicated robo-advisors like Carbon Collective may have minimums as low as $100, while others might start at $1,000 or more. DIY ETF investing can often be started with the price of a single share.
The Future of Money as a Force for Good
The journey that started with pioneers like BetterThisWorld is now mainstream. Sustainable investing assets continue to grow exponentially, driven by demand from younger generations and increasing regulatory focus on climate disclosure.
The core idea that you can “make money matter” is now supported by a robust ecosystem of tools, data, and products. The question is no longer if you can invest ethically, but how you want to do it—whether through a dedicated platform, a major brokerage, or a self-built portfolio.
Conclusion: Carrying the Torch Forward
While BetterThisWorld itself may no longer be operational, its mission is more alive than ever. Searching for “money BetterThisWorld” reveals a deep and growing desire to create financial well-being alongside planetary and social well-being.