By Carolanne Chavanne, CFP®
As Pride Month approaches, it's important to take a moment to reflect on how far we've come as a society regarding LGBTQ+ rights. It was only in 2015 that the United States' Supreme Court made the decision in Obergefell v. Hodges to legalize same-sex marriage nationwide, marking a significant milestone for the LGBTQ+ community.
Progress continues to be made toward helping LGBTQ+ individuals and families have the same rights as everyone else, and it's no different in the investing world. Many people want to invest in enterprises that match their values, especially those in the LGBTQ+ world.
Many companies and investment vehicles have made efforts to attract LGBTQ+ investors. As an investor, how do you know which companies are truly allies of the LGBTQ+ community? You can do the research yourself and try to come up with an answer, but luckily, there are solutions already out there to help you get the right information.
One option is to consider socially responsible investing (SRI), also known as sustainable, responsible, or impact investing. SRI is an investment approach that considers environmental, social, and corporate governance (ESG) criteria, enabling you to invest in companies that align with your personal values and beliefs.
Once you know your goal, you can focus on finding businesses that are LGBTQ+ friendly. A great place to start is by consulting a financial professional who can help you narrow your investment options based on your values. You can also refer to resources that rate companies based on their LGBTQ+ inclusivity, such as the Corporate Equality Index (CEI) and Credit Suisse's LGBT Equality Index.
Some people may think that investing based on their values could limit the return potential of their portfolios. However, research shows that companies with higher ESG scores and ratings outperform comparable firms in both accounting and stock market terms.
If you're interested in pursuing an SRI approach to investing, consider consulting a financial professional to determine if this strategy is a good fit for you. By investing in companies that align with your values, you can help support the continued progress of LGBTQ+ rights while also working toward your personal financial goals.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.