The internet has plenty of possible options if you have some money that you would like to invest. Investment used to be reserved for fund managers and stock traders alone. But now, investment options have sufficiently opened up for anyone, including you, through online means and direct-trading platforms.
A lot can be said for investing in exchange-traded funds (ETFs): ETFs are popular because they put your investment into several companies under the same umbrella. It’s not just one single stock investment at once.
Acorns is a personal fund manager that does the job of a traditional stock trader. But it allows the user all the control they could ever want over their portfolio.
Their Sustainable portfolio is one of many options you can find through Acorns membership – and it’s already received a lot of press since its introduction.
The Acorns Sustainable Portfolio promises to be one of the best exchange-traded funds for eco-sustainable investments. Companies offer high returns, low risk, and the potential for sustainable investment.
But should you put your money towards the Acorns Sustainable Portfolio? And is it worth it? A wealth of exchange-traded funds support the environment: Acorns could be the one you’re looking for – but it’s not for everyone.
Here’s an introduction to investment with the Acorns platform and a closer look at what the Acorns Sustainable ETF offers you.
Table of Contents
- An Introduction to Acorns
- What is Acorns?
- How does Acorns work?
- What are Acorns’ Investing Portfolios Options?
- Acorns Core Portfolios
- Acorns ESG Portfolio
- Bitcoin ETF
- What’s a sustainable portfolio?
- What are Acorns’ sustainable portfolios?
- Creating an Acorns Account
- Step 1: Choose a Round-Up Account
- Step 2: Connect Your Checking Account
- Step 3: Create an Investment Account
- Step 4: Start to Invest With the Acorns Early
- How do Acorns investments work?
- What is Acorns Later/Roth IRA and Traditional – Retirement Investing?
- Is Acorns investments legit?
- Is Acorns Investments safe?
- Why use Acorns at all?
- The Pros & Cons of Acorns
- Pros of Acorns
- Quick Investment
- Low Account Minimum
- Reputable Platform
- International Reach
- Easy to Use
- Easy Withdrawal and Deposit
- Automatic Trading Options
- Support Feedback
- Cons of Acorns
- It needs a Crash Course.
- Account Fees
- Limited Options
- There Are Other Sites
- Acorns Sustainable Portfolio: Is it Worth It?
- Is an Acorns ESG portfolio good?
- What is ESG portfolio on Acorn?
- What portfolio should I use on Acorns?
- What are the different levels of investing on Acorns?
An Introduction to Acorns
Acorns is an investment platform where you can exchange-traded funds (ETFs) and a fund broker. Most of the statistics are automatic; users can log in to see what’s happening in their portfolio.
It’s in real-time, guaranteed accurate, and one of the most popular means to invest in an ETF. Here’s an introduction to the Acorns platform first.
What is Acorns?
Acorns is a financial institution that offers a personal investment platform focusing on ETF trading. Users deposit their funds to the Acorns platform and then invest based on personal choice or system recommendations. And Acorns is designed to be this simple.
Basic information is all that Acorns requires from the user. Trading knowledge is not stated in their website terms and conditions, but reading what basic stock trading terms (such as ETF!) mean first is a good idea.
The whole point of platforms like Acorns is to bring investment to a single device (or person). You don’t need four consultations with a bank or fund manager to make your investment, but you can view your statistics and invest with a click.
How does Acorns work?
Acorns is an investment platform, but Acorns also works as an app if you want to download it on a device for faster access. The first step is to create an acorns account. From there, users can move straight to trading once they’ve made their first deposit. Since it’s a trading app, you can’t trade with anything.
Funds deposited into the Acorns escrow account can be invested anywhere. Acorns suggest options that are doing well and has put together some of its ETFs that could make suitable investments.
There’s no middle-man, no consultant, only data and the user who decides to invest (or not) based on what they see for each ETF. Investment, in the end, is totally within the user’s control.
One of the best things about Acorns’ portfolio is that you can go straight to their diversified portfolio suggestions even if you know nothing about stocks. And their recommendations are likely to be well-performing, prosperous ETFs.
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What are Acorns’ Investing Portfolios Options?
Acorns Core Portfolios
Acorns offer five core portfolios, each with different risk and return characteristics. These portfolios are designed to meet the needs of investors with varying risk profiles, investment goals, and investment horizons. The five core portfolios are the following:
- Conservative Portfolio: This portfolio is designed for risk-averse investors who prefer a stable investment option. The Conservative portfolio is composed entirely of bonds.
- Moderately Conservative Portfolio: This portfolio mixes 60% bonds and 40% stocks. And it is designed for investors more comfortable taking on a little more risk for higher potential returns.
- Moderate Portfolio: This portfolio mixes 40% bonds and 60% stocks. And it is designed for investors comfortable taking on moderate risk for higher potential returns.
- Moderately Aggressive Portfolio: This portfolio mixes 20% bonds and 80% stocks and is designed for investors with a high-risk tolerance for higher potential returns.
- Aggressive Portfolio: This portfolio is composed entirely of stocks. And it is designed for investors willing to take on the highest level of risk for the highest potential returns.
Acorns also offer a wide range of exchange-traded funds (ETFs). The app provides index funds offered through iShares and Vanguard, including the following:
- Large Company Stocks (Vanguard S&P 500 ETF)
- Small Company Stocks (Vanguard Small-Cap ETF)
- Developed Markets (Vanguard FTSE Developed Markets ETF)
- Emerging Markets (Vanguard FTSE Emerging Markets ETF)
- Real Estate (Vanguard REIT ETF)
- Corporate Bonds (JP Morgan Ultrashort Term Corporate Bond)
- Government Bonds (iShares 1-3 Year Treasury Bond ETF)
Once you have reviewed and selected the desired ETFs, the app allows you to drag the graph to see a change in the projected value over time based on your investment amount. You can also adjust your investment amount each month. And if you don’t like the recommended core portfolio, you can switch to a different one that better suits your preferences.
The app offers a wide range of ETFs and portfolios. It allows investors to choose their risk tolerance and investment goals best. The ability to adjust your investment amount and switch to a different portfolio ensures that your investment strategy can evolve with your changing preferences and financial goals.
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Acorns ESG Portfolio
ESG Portfolios are made up of ETFs that are focused on ESG investing. IShares create the ETFs, and each company in the ETF is scored by MSCI, a research and data company that evaluates companies’ responses to significant issues like climate change.
ESG stands for Environmental, Social, and Governance. ESG investing is a way to invest in companies that positively impact society and the environment.
These companies are evaluated based on their performance in climate change, human rights, and labor standards. ESG investing aims to promote positive social and environmental change while generating returns.
Acorns offer four categories in its sustainable portfolio: Moderately Conservative, Moderate, Moderately Aggressive, and Aggressive. These categories are similar to their core portfolio. But the sustainable portfolio offers more diverse ETFs.
By investing in an ESG Portfolio, you are growing your wealth and supporting companies that are doing good for the world. Investing in a sustainable future is becoming more critical and popular. And Acorns is making it easier for everyone to participate.
See Related: Reasons Why ESG Investing is Important
In March 2022, Acorns launched its Bitcoin-linked ETF product. Acorns’ Bitcoin ETF allows investors to allocate up to 5% of their portfolio to the ProShares Bitcoin Strategy (BITO) ETF. It provides indirect exposure to Bitcoin without needing to buy and hold the cryptocurrency directly.
The portfolio allocation percentage to the Bitcoin ETF depends on the investor’s chosen portfolio type. And it ranges from 1% for the conservative portfolio to 5% for the aggressive portfolio.
It’s important to note that investing in a Bitcoin ETF is not the same as buying actual Bitcoins on a crypto exchange. While the value of the ETF is based on the price of Bitcoin, the ETF holds futures contracts and not actual Bitcoins.
Additionally, Bitcoin ETFs are subject to the same market risks and volatility as other ETFs and investments. And the value of the ETF can fluctuate rapidly based on changes in the price of Bitcoin.
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What’s a sustainable portfolio?
Sustainable portfolios are not a new thing, but many people have just come to hear of them now. A sustainable portfolio refers to the eco-friendliness of the entire ETF. What do the companies part of this ETF do for the environment?
An eco-friendly portfolio promises that it won’t invest any of its funds in a sin stock industries like tobacco, weapons, or oil. The carbon footprint of the companies contained in sustainable portfolios is also, overall, less.
Sustainable portfolios are an increasingly popular choice for investors who care about the environment or for older ones who want to change their portfolio’s focus.
If you don’t invest in an eco fund, you have no idea where your money goes (or what it funds along the chain). Sustainable portfolios give users more control.
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What are Acorns’ sustainable portfolios?
Acorns is a platform but is also a type of virtual fund manager that hosts their exchange-traded funds for users to choose from. Acorns’ investment portfolio contains hand-selected companies almost guaranteed to do well. And most of them make a good bet.
Specifically, choosing an Acorns sustainable portfolio takes you to the options Acorns has put together. Their sustainable portfolios focus on the environment and thus make for a more “green” investment.
Access to Acorns’ investment account can cut out much of the hard work. There’s no need to find funds yourself, but you can choose from what’s available right in front of you.
Creating an Acorns Account
The platform makes investing easy, even for beginners, and in this article, we will guide you through the process.
Step 1: Choose a Round-Up Account
The first step to creating an Acorns personal account is to choose a Round-Up account. It is the account that you will monitor. And you will select which transactions you want to round up and invest in the change.
Acorns connect to the most popular banks, including Chase, Bank of America, Citibank, Wells Fargo, U.S. Bank, and USAA. You can use the search bar to find your bank if your bank isn’t listed.
After selecting your bank, you will be prompted to log in using your online sign-in credentials. Next, choose the account you’d like to use for round-ups. You can connect to more than one account if you’d prefer.
Step 2: Connect Your Checking Account
The second step is to connect your checking account, which is the account from which they will transfer funds into your Acorns account. You can click an existing checking account from the list and sign in using your online credentials or manually input your routing and account numbers from a different bank.
Acorns encrypt and protect all your banking information with bank-level security, so you don’t have to worry about connecting your bank information.
Step 3: Create an Investment Account
The third and final step is to create your investment account. Start by typing in your first and last name, phone number, and birth date, and choose a security question/answer. Then enter your address and indicate whether you’re a U.S. citizen.
You will be prompted to provide your employment information, net worth, yearly income, and the reason for investing. The answers to these questions help Acorns generate customized advice and a recommended portfolio created by its team of experts.
You can choose from five different reasons for investing: long-term investment, short-term investment, major purchase, children, or general. Finally, fill in your Social Security number, which is used for ID verification, tax reporting, and fraud prevention.
Once you have completed all the sign-up boxes in green, click the “Get Started!” button.
Step 4: Start to Invest With the Acorns Early
After signing up, you can start investing with the Acorns app. Logging into the app allows you to view your portfolio, check the performance of your index funds, see what the market is doing, and much more.
How do Acorns investments work?
Acorns is a combination of a trading platform and an investment app.
The same platform allows users to keep track of their investments, make more investments, or cash out their money when their investment has hit the heights they hoped for.
Acorns investment account gives the user total control, even of how much they want to invest. Their minimum is set low enough so anyone can join with just a few dollars to invest.
What is Acorns Later/Roth IRA and Traditional – Retirement Investing?
Acorns Later is a retirement investment account offered by Acorns. With Acorns Later, users can choose between a traditional or Roth IRA (Individual Retirement Account) to save for retirement.
Acorns Retirement Account is a traditional Individual Retirement Account (IRA) that allows users to invest in ETFs and stocks for retirement. This account offers tax advantages that can help users save more money for retirement. The account is available in two types: Traditional IRA and Roth IRA.
A traditional IRA is an account that offers tax-deferred growth, meaning that the contributions are tax-deductible. And the earnings grow tax-free until the user withdraws them. The withdrawals are taxed at ordinary income tax rates.
On the other hand, Roth IRA offers tax-free growth, meaning that the contributions are not tax-deductible. But the earnings and withdrawals are tax-free if the user meets the requirements.
To open an Acorns Retirement Account, users must follow simple steps. First, they must create an Acorns account on the web or via the mobile app. Then, they can choose the “Retirement” option and fill out the necessary information, such as their employment status, income, and age.
One feature that makes Acorns Later Account appealing is the automatic investment and portfolio rebalancing. The app automatically invests the user’s money based on their investment goals and risk tolerance. The app also rebalances the portfolio to maintain the target asset allocation. And it can help users stay on track with their investment goals.
Acorns charge a $3 monthly fee for its retirement account, which is competitive compared to similar services. It covers account management fees, investment advice, and the automatic rebalancing of the portfolio.
Is Acorns investments legit?
It’s one of people’s most common questions about the Acorns platform. But to assure you, we confirmed it through BrockerCheck (see image below).
Acorns have a broker-dealer license and are registered with the Securities and Exchange Commission (SEC). The company’s brokerage and custody services are regulated by the SEC and a member of the Financial Industry Regulatory Authority (FINRA).
FINRA is a self-regulatory organization that oversees brokerage firms and brokers in the United States. Its mission is to protect investors and ensure that the securities industry operates fairly and honestly. Acorns must comply with all the rules and regulations set by FINRA.
Acorns is also a member of the Securities Investor Protection Corporation (SIPC), which protects investors from financial losses in the event of a brokerage firm’s failure.
Moreover, prominent news publications like Forbes, CNBC, and The Wall Street Journal have featured Acorns’ investments. Acorns also have over 9 million users, which speaks to the platform’s legitimacy and popularity.
Is Acorns Investments safe?
As a website and trading platform, the answer is yes. Acorns.com uses the same cybersecurity techniques to secure its site as most banks. That’s the kind of answer you want when you quiz a website about its level of security.
Are the trades you can make through Acorns spend investments safe? The truth is that no trade is completely “safe” or guaranteed to perform well. But at the same time, ETFs are less likely to tank or achieve badly than individual, potentially scandalous single-company stocks.
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Why use Acorns at all?
There are other investment platforms like RobinHood: so why should you choose Acorns specifically for your ETF funds?
Acorns have a good reputation that you can verify. Even though reviews say that Acorns isn’t for everyone or some people say that Acorns have drawbacks, you have the fundamental guarantee that it’s a legit site.
One of the reasons you should consider getting an Acorns account is their prequalified lists of ETFs that have been reviewed and certified. And most of them have a good investment performance.
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The Pros & Cons of Acorns
Pros of Acorns
Acorns investment account offers the user the option of quick investment in their chosen ETF. It doesn’t take days to process payments or make trades. Everything is instant and can be done when you’ve signed up and made your first deposit.
Can your bank get your money into the stock market this fast through their in-house investment options? In most cases, the answer is not. And that’s why people prefer investment platforms like Acorn.
Low Account Minimum
Acorn has a low account minimum rate.
With just a few dollars necessary, you don’t need to shell out hundreds of dollars – or even ten – to start your first trade.
A low account minimum means that Acorn investments are accessible to pretty much anyone out there.
Many traditional stock investment platforms have a very high account minimum rate or exorbitantly high fees to make trades. Acorns don’t, and that’s one of their best-selling points.
If you sign up with Acorns, you have the guarantee that you’re putting your money in with a platform that has already had the time to build up a good reputation. Acorns are verified and registered. And it has a track record of trading success as a reputable platform – precisely what many traders need.
If you have to look for other investment platforms, you could be exposed to scams and fraudsters who don’t necessarily follow the law. Why take that risk when you can try out a platform that’s already been tested and reviewed as reputable and authentic?
Acorns have international reach and don’t just focus on local investment like other platforms (for example, Mainvest). It’s a good investment for anyone who wants to make investments to strengthen their portfolio – and their overall international reach.
International reach is something that many investment platforms don’t offer, or at least don’t offer, as well as you can expect from Acorns. It’s one of the most important reasons they’re considered a top investment provider.
Easy to Use
Acorns are simple to use: ease of use is the whole point of the platform. All users have to do is create their account, and they can start trading.
Ease of use is one of the essential pros here. How long would you use a trading platform that was challenging to navigate? Well, not long. But Acorns works great from PC or mobile, which is why many prefer it.
Other competitive platforms are often criticized for their hard-to-use interface or factors like lag affecting the ability to trade.
Easy Withdrawal and Deposit
One of the benefits of the Acorns platform is instant deposits: if you want to start trading now, your funds will show from the moment they are transferred – and there is no temporary hold like some other platforms to delay your trading.
Withdrawal is just as easy with Acorns. Once you’ve made the money you want on your investment, you cash your account out with a single click. Money will show in your account via wire transfer: it’s that easy.
Support is available for users who need help with deposits or payouts.
Automatic Trading Options
Users can set Acorns to trade automatically, although users don’t have to. And they can also set the system to make all trades user-decided instead. It helps to make Acorns a more versatile investment platform: only a few investment apps and sites still have an autopilot option.
Acorns offer a support inbox and call line for users who need help. They get extra points for quick feedback. If you have any questions, you can quickly contact someone from Acorns tech support to help you – and it takes minutes instead of days.
Competitor sites are known to be slow with feedback. And some are outright scams that won’t return your calls at all. Acorns have been around (and reputable) for years.
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Cons of Acorns
It needs a Crash Course.
Acorns are easy to use, but you’ll still need a short crash course on the platform if you have no experience in stock or fund trading. While this isn’t a drawback that speaks about the platform’s effectiveness, it’s something all new users are urged to consider.
Never go into an investment platform completely blind. View at least a few YouTube videos, get to know the platform a little better – then make your first trade.
There’s good and bad news here: the bad news is that Acorns charges account fees in the first place. But the good news is that these account fees are kept very low.
If you don’t mind paying for good service, Acorns is worth your money – and charges much less per-month fees than the average bank account.
Acorns give users instant access to various ETF options and “hot” stocks to trade in. But it’s not an unlimited way into the investment world. Regarding Sustainable Portfolio options, Acorns is limited to four main ETFs where you can put your money.
For many, a more diverse ETF selection is preferred. Other stock platforms could be more attractive if this is the case.
There Are Other Sites
Acorns aren’t the only investment platform of its type. Admittedly, there are other sites. You could try one of these sites and find that they work better than Acorns, at least for you.
Acorns work well, but it’s worth saying that Acorns doesn’t work great for everyone – and is excellent for some others.
Acorns Sustainable Portfolio: Is it Worth It?
Acorns have gotten a lot of press in the past few weeks, and it’s steadily gaining speed on conversation boards like Reddit. Is Acorns legit? That’s one of the most important questions to get the answer to before investing any of your money in them.
The good news? Yes, Acorns is an entirely legitimate platform for investment trading. It has a good reputation and can prove that it’s been in the investment business for years with the proper licenses and registration.
But is Acorns for you? That’s up to you: if sustainable ETF investment with a click is what you’re looking for.
Is an Acorns ESG portfolio good?
An Acorns ESG portfolio is a type of investment portfolio that focuses on companies with strong environmental, social, and governance (ESG) practices. These portfolios are designed to align with the investor’s values and beliefs while also achieving strong financial returns. Whether an Acorns ESG portfolio is good or not depends on the individual investor’s goals, risk tolerance, and personal values. It is important to carefully evaluate the portfolio’s performance and holdings to ensure they align with the investor’s financial and ethical objectives.
What is ESG portfolio on Acorn?
An ESG portfolio on Acorn is a type of investment portfolio that focuses on companies that prioritize environmental, social, and governance factors in their operations. These portfolios aim to invest in companies that are committed to sustainability, ethical practices, and good governance. By investing in an ESG portfolio on Acorn, investors can align their investments with their values and contribute to positive social and environmental change.
What portfolio should I use on Acorns?
Is Acorns Portfolio: a robo-advisor investment platform that offers five pre-built portfolios, each with a different level of risk and reward potential. The portfolios are designed to be diversified across asset classes and are made up of low-cost exchange-traded funds (ETFs). The portfolio that you should use on Acorns depends on your investment goals, risk tolerance, and time horizon.
Acorns also offers a feature called “Found Money” that allows you to earn cash back when you make purchases with certain retailers, which can be automatically invested into your chosen portfolio.
What are the different levels of investing on Acorns?
Acorns offers three different levels of investing: Lite, Personal, and Family. The Lite plan is the most basic level and charges $1 per month for a taxable investment account. The Personal plan costs $3 per month and includes an individual retirement account (IRA) in addition to the taxable investment account. The Family plan costs $5 per month and includes investment accounts for up to four children in addition to the taxable investment and IRA accounts.
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Kyle Kroeger, esteemed Purdue University alum and accomplished finance professional, brings a decade of invaluable experience from diverse finance roles in both small and large firms. An astute investor himself, Kyle adeptly navigates the spheres of corporate and client-side finance, always guiding with a principal investor’s sharp acumen.
Hailing from a lineage of industrious Midwestern entrepreneurs and creatives, his business instincts are deeply ingrained. This background fuels his entrepreneurial spirit and underpins his commitment to responsible investment. As the Founder and Owner of The Impact Investor, Kyle fervently advocates for increased awareness of ethically invested funds, empowering individuals to make judicious investment decisions.
Striving to marry financial prudence with positive societal impact, Kyle imparts practical strategies for saving and investing, underlined by a robust ethos of conscientious capitalism. His ambition transcends personal gain, aiming instead to spark transformative global change through the power of responsible investment.
When not immersed in the world of finance, he’s continually captivated by the cultural richness of new cities, relishing the opportunity to learn from diverse societies. This passion for travel is eloquently documented on his site, ViaTravelers.com, where you can delve into his unique experiences via his author profile.