OpenInvest provides advisors and investors with the ability to mix and match the social issues they care about and create a portfolio based on those choices.
The digital investment advisory firm based on socially responsible investing allows advisors to select a mix of social issues for their clients, said Claire Veuthey, director of environmental, social and governance and impact investing at OpenInvest.
The newest addition to the OpenInvest menu of investing options is a heart healthy category, which allows investors to align their assets with companies fighting heart disease, which is the leading cause of death in the United States. One out of four deaths in the United States is due to heart disease, while every 40 seconds someone suffers a heart attack.
To combat this epidemic, OpenInvest identified companies offering cardiology medicines and devices, as well as companies promoting healthy living through exercise. Simultaneously, it divests from companies with products that aggravate or lead to heart disease, such as tobacco, alcohol, soda, sugary snack companies, meat processors and fast food chains.
In addition to the new heart healthy category, OpenInvest allows investors to identify companies that give to political candidates through “dark money,” which has no disclosure requirements; to identify companies contributing to deforestation and companies involved in the construction of the Dakota Access Pipeline, as well as more traditional environmental and social issues such as fossil fuel and gun companies. It even has screens for companies that support refugees and companies that oppose President Trump’s policies.
“At OpenInvest we want to ensure that everyone’s finances truly reflect their personal values and drive positive social change,” said Joshua Levin, co-founder and chief strategy officer, OpenInvest. For the new heart healthy screen, “everyone seems to know someone who has or had heart disease. This new investing category encourages companies to join the battle against coronary illness and stop profiting from the epidemic.”
OpenInvest is different from other impact investing firms, Veuthey said, in that it allows investors to judge companies on the basis of more than one issue at a time. For instance, it can show companies that are good on environmental issues and have a track record for women’s leadership.
OpenInvest was founded in 2015 by Conor Murray and Phil Wei, who met building financial systems for the world’s largest hedge fund, Bridgewater Associates. They founded OpenInvest to merge their personal interests in global causes like climate change and equal rights, with their professional skills in constructing advanced, customized investment strategies. Shortly after, they teamed up with Josh Levin, a sustainable finance expert from the world’s largest environmental organization, the World Wildlife Fund, OpenInvest said.
OpenInvest enables investors to buy into individual stocks, rather than funds, frequently rebalances portfolios, and incorporates tax loss harvesting. The average investor has a $20,000 to $30,000 investment.
Ideas for issues to be included in the investment menu come from a variety of sources, including employees of OpenInvest and clients and will grow in the future, Veuthey said.