Ellevest has built a proprietary gender-aware investing algorithm and data analytics to make the product predictive and highly personalized, The platform can calculate financial goal targets to meet women’s specific needs, including a larger retirement target amount for the potentially longer life span of women.
Ellevest offers memberships for women who select the level they want to participate. There are three different plans to choose from, and each one gives access to a different set of specially designed investing goals. Depending on the account chosen, the platform gives access to investing, banking, learning and coaching often with workshops, courses, and guides for members to learn at their own pace. All the tools are created by the Ellevest team of financial planners and career coaches. There is also private wealth management for high income clients.
Women generally prefer less volatility and want more certainty of achieving their goals. What matters most is the achievement of their personal financial goals (such as being able to buy a house, start a business or contribute to grandchildren’s education), not outperforming arbitrary financial benchmarks. The methodology and algorithms that underlie Ellevest’s recommendations are built from the ground up, incorporating what has been learned from women about how they want to invest.
Ellevest core portfolios are constructed using carefully vetted low-cost exchange-traded funds (ETFs), which are purposefully combined in an attempt to lower overall risk. Customized projections and forecasts aim to provide as close a reflection as possible of what someone can expect from their investing activities.
Co-founder and CEO Sallie Krawcheck founded Ellevest because she felt “gender-neutral” money solutions weren’t serving women and wanted to offer them a robust, thoughtful investment approach. Krawcheck, a Wall Street veteran, was formerly CEO of Merrill Lynch Wealth Management Fund, Smith Barney and CFO at Citi.