I was reading through my news feeds today and came upon this headline: Vanguard put gun stocks in a gun-free fund after index error. It seems that Vanguard bought gunmaker, Sturm Ruger & Co in its US ESG stock ETF – not much – but this fund was supposed to exclude non-renewable energy, weapons and vice products.
One of the most difficult aspects of responsible investing is making sure that the underlying holdings in your investment choices actually align with the marketing of the the fund. All too often we find holdings that we would never consider socially or
environmentally responsible showing up in the latest ESG fund. It’s usually fossil fuel companies – the justification is that fossil fuel company A has a better sustainability record than fossil fuel company B – the reality is that neither should be in the portfolio.
About a year ago we developed the Impact X-Ray report so that prospective Earth Equity Clients could have an idea of the questionable investments in their current portfolio. The report lists fossil fuel investments, weapons, tobacco, mining and others. It helps prospective clients make an educated decision when deciding to switch investment advisors. Check out this actual Impact XRay Example from a prospective client.
At Earth Equity Advisors, we constantly monitor our portfolios to make sure that we minimize and eliminate if possible those companies and industries that don’t align with your values. If you’re ready to learn more or have a complimentary Impact X-Ray, get in touch.