ESG Broad Market Large/Mid Cap US Stocks

Smart Beta Portfolios (ESG variants)

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0.20% annual

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US equities

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$100

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ESG Broad Market launched May 2019; the other four launched July 2019.

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The ESG Broad Market portfolio gives investors a structured way to participate in the U.S. equity market while prioritizing companies with strong Environmental, Social, and Governance (ESG) credentials. It spans a wide range of large-cap and mid-cap holdings, focusing on businesses that demonstrate responsible practices across their industry. A scoring-driven selection process identifies companies that balance financial strength with sustainability, resulting in a well-diversified collection of names. This approach enables investors to align their investments with their values while maintaining broad equity market exposure.

Interactive Advisors is an established name in the field of online investing, with a history of path-breaking work. The platform offers a variety of portfolios, including the Socially Responsible Investing (SRI) portfolios, which are managed by Interactive Advisors's Chief Investment Officer and Investment Management team. The “Socially Responsible Investing” approach to portfolio construction is designed to invest in companies that operate businesses keeping in mind not only financial goals and profits, but also ethical and environmental concerns. The incorporation of Environmental, Social and Governance (ESG) factors into investment decision-making is aimed at incentivizing better practices from the companies. The sustainability practices foster long-term value creation while giving investors an opportunity to align their investments with personal values.

Capital growth with a similar risk profile to broad equity markets. Investing in equities and prepared to accept fluctuation in portfolio value.

ESG-conscious investors: If aligning your investments with your environmental and social values matters to you, this portfolio offers a straightforward way to own companies recognized for responsible practices while maintaining diversified equity exposure. Broad market participants: Investors looking for diversified access to a wide range of U.S. companies can benefit from this portfolio's reach across both established industry leaders and mid-sized growth businesses. Discipline-focused investors: If you prefer a structured, process-driven approach over active stock-picking, this portfolio's formulaic selection and regular rebalancing deliver a transparent, dependable investment method.

Research: The investment team draws on detailed third-party ESG data to screen and construct the portfolio. This data evaluates company disclosures from annual reports, regulatory filings, and corporate websites. Approach: The portfolio uses a formula-driven process to determine which companies qualify and how to size each position. Its investable universe includes the largest U.S.-listed stocks that carry above-average ESG ratings within their sector. Position weights combine capitalization-based and equal-weight methods, balancing index-like exposure with broader diversification. Holdings are rebalanced each quarter to stay aligned with the portfolio's target structure. Allocation discipline: The portfolio typically holds hundreds of positions across a broad spectrum of company sizes, from well-established large-cap leaders to growing mid-cap firms. Each name must clear a minimum ESG threshold set against its own industry. Position sizing blends equal-weight and cap-weight approaches, which spreads capital across many holdings while giving proportionally more weight to the market's largest constituents. Sell discipline: Sell decisions follow a disciplined, calendar-driven schedule rather than reactive market timing. Each quarter, the portfolio is rebalanced back to its target weights, and any company that no longer meets the selection criteria is removed at that time. Exceptions: Stocks involved in corporate actions, such as mergers or acquisitions, may be sold or adjusted outside the regular quarterly rebalance schedule.

Values-aligned stock ownership: You invest directly in companies with above-average ESG ratings within their industries for environmental stewardship, social responsibility, and sound governance, so your portfolio reflects your principles while keeping you connected to the wider U.S. stock market. Data-driven precision: A data-driven framework determines each position's size using a mix of market-cap and equal weighting, removing emotional bias and delivering consistent, repeatable portfolio construction. Built-in diversification across market segments: With hundreds of holdings across seasoned and growing U.S. businesses, this portfolio spreads risk widely rather than concentrating in a narrow set of names.