Frequently Asked Questions
What can Recap do for me?
What is Recap Investing?
Recap is a sustainability-focused automated investing platform. For retail investors like you, we help define your financial goals and impact objectives and build a customized portfolio to achieve both at the same time.
We will handle the trading, monitoring and maintenance of the portfolio so you can spend your time on what’s important to you.
How does Recap work?
Recap helps you manage money through guided investing and retirement planning.
We start by learning about your financial situation, goals, risk tolerance and impact objectives with a short onboarding survey when you sign up. You will then have a chance to fully review the composition of your customized portfolio including the specific stocks that align with your impact area choices and the reasons why they were selected.
Once you’re comfortable with the plan, we’ll guide you through the forms and funding process. After that, you can sit back and relax as we take care of the rest.
What investments does Recap offer?
Your customized Recap portfolio is made up of US-traded stocks and ETFs that are directly held in your account through fractional shares. Based on your onboarding survey selections, we select a target composition of asset classes that meet your objectives (this is known as asset allocation). For asset classes outside of US stocks, we use a selection of cost-effective ETFs that meet our sustainability guidelines.
The US stock portfolio is constructed using an investment methodology uniquely designed for sustainable investing. Companies in your portfolio undergo a rigorous screening process. Only companies that meet a minimum Recap Badge standard and meet your risk and return expectations will be included. To learn more about how we build our portfolios, see our methodology page.
What are Recap's impact areas?
We currently offer 9 impact areas for you to choose from. Our impact areas are broadly aligned with the United Nations Sustainable Development Goals (SDGs). To achieve a better and more sustainable future, we felt that the UN SDGs were the best blueprint for our core impact areas.
To learn more about which areas you want to focus on, see our specific impact areas pages.
What are Recap’s fees?
We are in our beta phase right now and are offering promotional pricing for our private beta customers. If you haven’t signed up already, join our mailing list and we’ll let you know!
How does Recap compare to other Robo-advisors?
Recap goes beyond generic ETF offerings to build a customized portfolio to meet both your financial goals and impact objectives. We help you invest directly in the stocks that you care about as opposed to most Robo-advisors which put you into ETFs. By investing directly into stocks we empower you to be part of the solution and the greater movement.
Besides the way the portfolio is constructed, you’ll enjoy the same conveniences as other Robo-advisors like automated rebalancing and dividend reinvestment.
What type of accounts does Recap offer?
We offer taxable brokerage and individual IRA accounts (Rollover IRA, Traditional/Roth IRA, SIMPLE IRA).
Can anyone open a Recap account?
US citizens and residents only. You’ll need to provide a Social Security Number (SSN) to verify your identity when opening an account.
I have a 401(k) from a previous employer, can Recap manage it?
Yes. You can rollover your 401(k) or other employer-sponsored retirement plan into a Recap Investing IRA account.
How does Recap automated rebalancing?
Recap automates the rebalancing of your portfolio in 2 ways.
The US Stock component of your portfolio is directly invested so this portfolio is monitored against Recap’s investment models. Recap uses a factor investing methodology to rebalance these models on a quarterly basis.
Recap also monitors the relative weighting of your US Stock portfolio with other asset classes (implemented as ETFs) based on your time horizon and risk preferences. To avoid unnecessary trading due to market volatility, we set a band around the target weight and a rebalance is only triggered if the weights fall outside of these bands.
Any new deposits or cash dividends are reinvested during the next market session.
Recap is a sustainable investing platform that enables you to easily invest in companies that share the same environmental and social values as you.
Recap Investing Inc. is an SEC-registered investment adviser.
Brokerage services provided to clients of Recap Investing Inc. by Interactive Brokers LLC (https://www.interactivebrokers.com). Interactive Brokers is a member NYSE - FINRA - SIPC and regulated by the US Securities and Exchange Commission and the Commodity Futures Trading Commission.
Investments in securities: Not FDIC Insured • No Bank Guarantee • May Lose Value.
All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Historical returns, expected returns, and probability projections are provided for informational and illustrative purposes, and may not reflect actual future performance. Before investing, consider your investment objectives and Recap's fees and applicable custodial fees.
Recap's performance is hypothetical and does not represent the investment performance or the actual accounts of any clients. The securities in the hypothetical portfolio were selected with the full benefit of hindsight, after their performance over the period shown was known. The results achieved in our simulations do not guarantee future investment results. The model performance information is based on the back-tested performance of hypothetical investments over the time periods indicated. “Back-testing” is a process of objectively simulating historical investment returns by applying a set of rules for buying and selling securities, and other assets, backward in time, testing those rules, and hypothetically investing in the securities and other assets that are chosen. Any comparisons to indices are provided for illustrative purposes only.