Wealthify has become the latest online wealth manager to launch ethical portfolios.

The ethical portfolios will span five risk levels (cautious, tentative, confident, ambitious, and adventurous), mirroring Wealthify’s present investment proposition.

Because of the higher charges on ethical funds, the cost of investing in the new portfolios will be higher, averaging around 0.54%, ranging from 0.42% to 0.69%, compared to 0.21% for Wealthify’s standard offering. 

The portfolios will invest globally using both exchange-traded funds (ETFs) and mutual funds, and will take advantage of thematic investments such as gender equality funds.

Wealthify will use active funds from Edentree, Kames Capital, Liontrust, Legal & General, Royal London, UBS, Stewart Investors, iShares, and Vanguard, for the new proposition. 

‘We have listened to our customers and I’m delighted Wealthify is now able to offer ethical portfolios, starting from just £1,’ said Michelle Pearce (pictured), chief investment officer and co-founder of Wealthify.

She added: 'Our decision to use actively-managed ethical funds reflects a desire to provide customers with the most ethically-robust investment plans possible.

'The layers of additional qualitative monitoring carried out by the fund providers, along with third-party independent verification and specialist assessments, should provide assurance to customers that their money is being invested in the most principled companies operating the highest ESG standards.'

Wealthify is the fourth UK robo adviser to offer an ESG option following Moola, PensionBee and Wealthsimple.