Q: How can I tell if my investments have exposure to companies that care about LGBTQ+ rights?
A: Such a timely question with Pride Month upon us. There are many investment options out there that will take criteria such as LGBTQ+ rights into consideration. Here’s what you need to know to find them. And Happy Pride to us all!
During Pride Month, 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 our 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, as ESG investing has become more mainstream, evidence as to how the performance of ESG investments compares to the performance of non-ESG investments has also improved. Some ESG investments may outperform the broader market, while others may not.
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.
Jeremy R. Gussick is a Certified Financial Planner™ professional at Gussick & Barnett Financial Planning, affiliated with LPL Financial, the nation’s largest independent broker-dealer.* Jeremy specializes in the financial planning and retirement income needs of the LGBTQ+ community and was recently named a 2023 FIVE STAR Wealth Manager as mentioned in New Jersey Monthly.** He is active with several LGBTQ+ organizations in the Philadelphia region, including DVLF (Delaware Valley Legacy Fund) and the Independence Business Alliance (IBA), the Philadelphia Region’s LGBT Chamber of Commerce. OutMoney appears monthly. If you have a question for Jeremy, you can contact him via email at [email protected].
This content is developed from sources believed to be providing accurate information and provided with the assistance of 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.
Jeremy R. Gussick is a Registered Representative with, and securities and advisory services are offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC.
Gussick & Barnett Financial Planning and LPL Financial are separate entities.
*As reported by Financial Planning magazine, June 1996-2023, based on total revenues.
**Award based on 10 objective criteria associated with providing quality services to clients such as credentials, experience, and assets under management among other factors. Wealth managers do not pay a fee to be considered or placed on the final list of 2023 Five Star Wealth Managers.