The startup offers a data-driven technology platform that provides simplified financial planning services through optimized passive portfolio construction. By utilizing investment consulting technology, it enables family offices, health advisers, and endowment foundations to create sustainable portfolios with minimized tracking error against established benchmarks.
Funding
$99.3M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
JPFounders
Product
Problem
Many investors lack the ability to easily align their investment portfolios with their personal values and sustainability goals, while also optimizing for financial performance and tax efficiency. Traditional investment approaches often fail to provide the level of personalization and transparency needed to reflect individual preferences regarding environmental, social, and governance (ESG) factors. This misalignment can lead to investor dissatisfaction and a missed opportunity to drive positive change through capital allocation.
Solution
Ethic provides a technology platform that enables advisors and institutions to create personalized, values-aligned, and tax-smart investment portfolios at scale. The platform offers separately managed accounts (SMAs), unified managed accounts (UMAs), and model portfolios, all designed to reflect individual client values and financial objectives. Ethic's solution incorporates proprietary sustainability research, data science, and tools to identify client priorities and translate them into values-aligned portfolios. Active tax management capabilities, including tax-loss harvesting and personalized transitions, are designed to improve after-tax outcomes. The platform also delivers engaging reporting across financials, impact, tax, and proxy voting, deepening client engagement and transparency.
Target Audience
Ethic primarily serves registered investment advisors (RIAs), family offices, networks, and institutions seeking to offer personalized, values-aligned investment solutions to their clients.
Features
- Direct indexing equity SMA portfolios customized to individual client goals, preferences, and values
- Multi-factor optimization to track underlying benchmarks while aligning with client values
- Proprietary sustainability research, data science, and tools to identify and incorporate client priorities
- Active tax management, including tax-loss harvesting, personalized transitions, and securities gifting
- Unified Managed Accounts (UMAs) combining SMAs with equity and fixed income funds
- Model portfolios comprised of listed fund products designed to reflect a firm-level view on asset allocation
- Client Experience platform simplifying prospecting, proposal creation, and values mapping
- Expanded reporting offering analysis across asset classes, financial performance, impact metrics, tax, and proxy voting