Ellevest has branded itself as the female-centric financial platform and claims that its mission is to fill the gender investing gap. Though over 40% of the global workforce are women, that group tends to invest at an unbelievably lower rate when compared to men. That’s the same case even in developed nations like the US. In fact, women control only 1% of global wealth. That points out that there is clearly a need to empower the women to invest so that they play the financial game on par with men.
With a one-pointed goal of helping the women in investments and achieving their financial goals, Sallie Krawcheck, the former CEO of Smith Barney, Merrill Lynchits, and Citi Private, has launched Ellevest in 2016.
In this article, we’ll explore how Ellevest as a dedicated digital investment platform for women helps them to up their investment game. Let us dive in without waiting any further.
Best Features of Ellevest:
Focused on Women
One thing where Ellevest really shines is its focus on the specific investment needs of women. They have understood that females are completely different when it comes to financial decisions. There is a considerable gap between the earnings of full-time working men and women. Unfortunately, the gap just broadens for colored women.
With a 100% female-centric approach, Ellevest has certainly grabbed the attention of the female workforce. Ellevest has designed its financial advice considering the lower-earning potential of women. Unlike mainstream robo-advisors that give the same financial advice to both men and women, Ellevest advises a higher savings rate for women.
The website of Ellevest looks modern and clean. It’s simple and easy to use. The mobile app which the latest venture rolled by Ellevest is beautiful and works seamlessly. You just need to sign up and enter the financial goals, income, responsibilities, and some other data. That’s it! Ellevest then crafts a suitable investment portfolio for you. Overall, the design and the presentation is a breath of fresh air.
Women have a different set of goals when compared to men. Ellevest crafts unique investor profiles for each individual considering their personal goals. It works on helping the clients achieve their long-term goals like retirement and health fund. Also, they do not charge a management fee for nonretirement goals and short-term goals.
The platform is so simple that the investor just needs to select the goal. The goals include things like a down payment for a new home, saving for a car, child-related expenses, building funds for starting a business, etc. The software considers the risk capacity and the time horizon to generate the customized financial plan that can assure you at least 60-70% success.
The best thing about Ellevest is it invests the assets in ETFs that are of low cost. It means that the expense ratios will not cross 0.10%. Their impact investment portfolios are also targeted on the investment handles that strive to empower the women.
What could be better?
Despite being female-centering and striving to close the gender money gap, Ellevest falls short in certain aspects. For instance, Ellevest has a large number of funds or investment choices. These excessive choices may overwhelm the client and eventually affect the volatility in an unwanted way.
Even though it’s great that Ellevest does not charge any management fees at all for short-term savings, the interest rate they are offering is discouraging. They offer just 0.01% interest rate on short-term savings which is really low when compared to other robo-advisors.
If you have any questions, check out this section on Ellevest’s website. They have answered a bunch of questions there and if you don’t find an answer to your question, you can email them directly.
Ellevest is certainly one of the easy to use digital financial advisors in the market today. The idea of focussing on women and striving to close the gender gap in the investment game helps the Ellevest to stand out among other popular financial services like Fidelity, Betterment, Acorns, etc.
Apart from that, the financial content and advice on Ellevest are incredible. Though they charge almost the same fees as other digital financial advisors, features like free checking, tax-loss harvesting, portfolio blend that favors women’s needs, interest-bearing saving accounts, etc are the clear benefits. We hope this post has provided you with a good idea of what to expect from Ellevest. Keep visiting this space as we share useful financial tips and insights in our upcoming posts.