Moola

Moola became the first robo-investment platform in the UK to offer an ethical option in March 2018.

It deserves a big thumbs-up for this, because most robo-platforms only offer index-tracker options, which means your investment will simply track the performance of an index based on your risk profile, as these tend to be the lowest cost (and robo-platforms are designed to be low cost).

So to offer an ethical option is a very honourable deviation from the business model – and the portfolio it offers is still relatively low cost, at 0.2 to 0.31 per cent on top of the flat 0.75 per cent everyone pays.

You can tick a big box on the site to say you prefer to invest ethically and then you can play around with the different risk options to see forecasts for how much your money will grow by over different time periods, and for different amounts, depending on the option you choose.

Moola uses the MSCI ESG (Environmental, Social and Governance) Index as the basis for its ethical portfolio (there’s an FAQ on its ethical approach here).

It’s worth mentioning that the holdings within this index may still make some people who want their money to do better blanch: Total, the oil company, is one of its top holdings (NB. It’s worth nothing that a lot of ethical or ESG funds and indexes are not quite as pure as you’d hope, because they assess companies based on progress and engagement, rather than the activities they are profiting from).

If you want to dip your toe into investing ethically and you are not too fussy about exactly which companies and sectors, this is a good place to do it. It’s ultra user-friendly, playful and you will learn about investing along the way.

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