Ethic Inc. (“Ethic”), the tech-driven asset management platform that powers personalization for advisors, today announced that it has surpassed $1 billion in assets. This past year, the firm has more than doubled the number of portfolios managed.
Ethic, now among the largest independent providers of sustainable direct indexing strategies for wealth advisors, has risen up to meet the growing demand in recent years for personalized investing solutions. Its scalable technology platform enables advisors to create custom portfolios that align clients’ financial goals, values, and tax management preferences, all while seeking to minimize tracking error to the underlying benchmark. It also offers an array of supplemental features, including data-rich impact reporting and educational materials, that position advisors to lead meaningful conversations around sustainability.
“This latest milestone is a validation of the strength of our offering, and reflects a broader shift toward personalization in financial services,” said Doug Scott, co-founder and CEO of Ethic. “More importantly, though, it speaks to the power of collective action—it means that the Ethic community has allocated more than $1 billion toward strategies that seek to ensure a more sustainable, equitable future. We’re deeply appreciative of our mission-driven team and partners, who share our commitment to driving lasting change and accelerating the transition to sustainable investing.”
Ethic’s billion-dollar milestone represents a major step in the company’s efforts to drive meaningful impact. For perspective, an investment of $1 billion in Ethic’s Flagship Sustainability strategy would reduce a portfolio’s carbon footprint by 36,000 metric tons of carbon dioxide emissions each year, compared to an equivalent investment in the S&P 500 (*1). This amount of carbon dioxide emissions is equivalent to that generated by powering 4,335 U.S. homes for a year or burning enough oil to fill five Olympic-sized swimming pools (*2).
This announcement also comes amid a banner year for Ethic, in which the company announced a $29 million Series B funding round led by Oak HC/FT and joined by existing investors Fidelity Investments, Nyca Partners, Sound Ventures, and Urban Innovation Fund, among others. In recent months, Ethic was also named as one of the Best Places to Work in Fintech by Arizent and Best Companies Group (*3), and added former CFTC chairman Timothy Massad as a strategic advisor.
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Ethic is a tech-driven asset management platform that powers personalization for advisors. The company enables advisors to personalize a given benchmark to correspond with a client’s investment, values, and tax management preferences, while seeking to minimize tracking error to the underlying benchmark. The Ethic offering is available to advisors custodying with Fidelity, Charles Schwab / TD Ameritrade, or Pershing. The company is backed by investors including Oak HC/FT, Nyca Partners, Fidelity Investments, and ThirdStream Partners. Ethic is an SEC Registered Investment Adviser based in New York City.
(*1) Ethic Market Theme - Flagship ESG and S&P 500 carbon footprints are calculated using portfolio weights, company annual CO2 scope 1&2 emissions, and company market capitalization figures derived from Ethic’s third-party data vendors as of April 1, 2021.
(*2) United States Environmental Protection Agency. (2021c, May 20). Greenhouse Gas Equivalencies Calculator. US EPA. https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator
(*3) To learn more about the selection process, please visit https://www.bestplacestoworkfintech.com/process