Will Multiple Tax Events Occur When Switching to an ESG Portfolio?

Article author
Alexander G.
  • Updated

Updating your risk level and portfolio theme at the same time may create two potential tax events. We don't have a way of switching both your portfolio theme and risk level under one taxable event. 

We would recommend talking with a tax advisor to help you decide. 

What are the portfolio themes and risk levels?

When you sign up for Acorns, your default Acorns Invest portfolio theme is the “Core Portfolio.” We then recommend a portfolio risk level based on your Investor Profile. These range from Conservative to Aggressive.

In addition to our Core Portfolio, we also offer an ESG Portfolio theme, which gives you exposure to companies rated for their impact on environmental, social, and governance issues.

How do I switch to an ESG portfolio theme?

If you're an existing customer, you have the option to switch to an ESG portfolio for your Invest, Later, or Early accounts. Heads up — if you're currently in the conservative core portfolio, you won't find a conservative ESG portfolio option.

 Here’s how to switch to an ESG portfolio theme.

How do I change my portfolio risk level? 

From your Acorns app:

  1. Tap "Invest"
  2. Tap "Your Portfolio"
  3. Tap “Edit”
  4. Tap "Risk"
  5. Use the buttons at the top of the screen to scroll through the different profiles
  6. Tap "Change Portfolio"
  7. Confirm the change by following the dialogue box

From acorns.com:

  1. From the home screen, click on "Invest"
  2. Click on "Your Portfolio"
  3. Click on "Risk"
  4. Use the left and right arrows to scroll through each portfolio
  5. Click on "Change Portfolio" at the bottom of the screen to make your selection

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