Comprehensive Financial Solutions, Inc.

440-343-4223

Investment Read Time: 3 min

How to Invest in LGBTQ+ Friendly Companies

On a sunny Friday in June of 2015, the Supreme Court of the United States made a monumental decision in Obergefell v. Hodges, which drastically changed the country's social and financial landscape. Same-sex couples celebrated, the nation's monuments were lit in joyous rainbow hues, and Americans who identify as LGBTQ+ were married in record numbers. In the years since, companies and investment vehicles have done their best to attract same-sex investors in all sorts of ways.1,2

But how do you know which companies are true LGBTQ+ allies? For some investors, the answer may be Socially Responsible Investing. Read on to learn more.

Investing in Your Convictions

Socially Responsible Investing (SRI), sometimes known as sustainable, responsible, or impact investing, is an investment discipline that considers environmental, social, and corporate governance (ESG) criteria. In other words, SRI strategies attempt to allow you to maintain your personal values and goals by investing in companies that have those same beliefs.3

Finding LGBTQ+ Allies

How do you decide which companies deserve your investment? An excellent place to start is with your financial professional. Many professionals can help you narrow down your investment ideas until they meet certain criteria, allowing you to completely avoid particular industries that may not align with your values.

Indices That Care

Another helpful resource is the Corporate Equality Index (CEI), which rates businesses' LGBT-inclusivity from 1 to 100. The CEI is constantly updated, allowing investors to see if a company is as inclusive as they claim. Another resource that may be useful is the Credit Suisse LGBT Equality Index, which only includes companies that score an 80 or better on the CEI.4

No Sacrifice Necessary

Some LGBTQ+ investors may worry that investing with their values could limit the return potential of their portfolio. Although, this notion has been floating around for a while, and a great deal of research tells a different story. In fact, studies show that companies with higher environmental, social, and governance scores and ratings can outperform comparable firms in both accounting and stock market terms. But remember, past performance does not guarantee future results.5

Don't forget, having a chat with your financial professionals is a good idea if this type of investment approach appeals to you. Who knows? Perhaps this type of strategy is a good fit.

1. The Supreme Court of the United States, 2015 "Obergefell v. Hodges"
2. Gallup.com, February 24, 2021
3. Investopedia.com, 2021
4. Investopedia.com, 2021
5. Forbes.com, April 7, 2021

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. 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. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. 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. Copyright FMG Suite.

 

Related Content

Roth 401(k) vs. Traditional 401(k)

Roth 401(k) vs. Traditional 401(k)

This calculator compares employee contributions to a Roth 401(k) and a traditional 401(k).

Key Money Moments: 4 Times You Should Talk to a Pro

Key Money Moments: 4 Times You Should Talk to a Pro

Life happens fast, and your finances can take a backseat if you’re not careful. Is it time to check in with a financial professional? This infographic will help you examine your own financial situation and decide if it’s time to step up your financial game.

Protecting Your Home Against Flood Loss

Protecting Your Home Against Flood Loss

Protect yourself against the damage that your homeowners policy doesn’t cover.

 

Have A Question About This Topic?







Thank you! Oops!

Important Birthdays Over 50

Here's a look at several birthdays and “half-birthdays” that have implications regarding your retirement income.

How Will Working Affect Social Security Benefits?

Knowing the rules may help you decide when to start benefits.

Conquering Retirement Challenges for Women

Looking ahead can help you conquer these unique obstacles.

View all articles

A Look at Systematic Withdrawals

This calculator may help you estimate how long funds may last given regular withdrawals.

Disability Income

This calculator estimates your chances of becoming disabled and your potential need for disability insurance.

My Retirement Savings

Estimate how long your retirement savings may last using various monthly cash flow rates.

View all calculators

Principles of Preserving Wealth

How federal estate taxes work, plus estate management documents and tactics.

Managing Your Lifestyle

Using smart management to get more of what you want and free up assets to invest.

5 Smart Investing Strategies

There are some smart strategies that may help you pursue your investment objectives

View all presentations

Suddenly Single: 3 Steps to Take Now

Have you found yourself suddenly single? Here are 3 steps to take right now.

When Markets React

When markets shift, experienced investors stick to their strategy.

The Other Sure Thing

Though we don’t like to think about it, all of us will make an exit sometime. Are you prepared?

View all videos