Swell's portfolios differ from an ETF and even a mutual fund in the following ways:
Fees: Swell investors are charged a single fee of 0.75% per year on the assets that are managed. For example, on an account of approximately $500, you will pay around $3.75 for the full year. For more information on our fees, please see here.
Investment Methodology and Approach: Swell's portfolios provide investors with a greater level of transparency into what they own. You can see the individual security holdings here. Each of the portfolios also has a detailed factsheet that offers a deeper look into the impact of each of these holdings. Our portfolio team has experience with not only the management of institutional investments, but also with impact. Impact and performance are the two key factors kept in mind when constructing Swell's portfolios. For more information on our approach, please see here.
Taxes: Because Swell's portfolios are structured as separately managed accounts (SMAs), they can go well beyond the basic tax efficiency of ETFs by tax-optimizing any withdrawals our users make. Folio Institutional, Swell's broker-dealer, breaks down withdrawals and any gains in an annual 1099 tax form for investors.
Customization: Swell gives you a greater level of customization: unlike a mutual fund or an ETF, you have the option to remove up to three holdings from your portfolio. Additionally, you can make changes to your portfolio mix anytime you wish without trading fees.
Shareholding: Because our portfolios are made up of equity securities, Swell investors are shareholders of the companies in their portfolios. This means that they are able to vote on shareholder resolutions and even attend portfolio companies' annual meetings if desired.