Right now, LGBTQ pride events are taking place all over the country as part of Pride Month. Yet in the business world, it’s often difficult to find which companies celebrate the LGBTQ community.
Fortunately, investors are increasingly interested in socially responsible investing across numerous social issues. LGBTQ and allies are particularly profound in making their opinions clear, and companies are listening.
What does this mean for your and your portfolio? Well, if you wanted to make sure your investments support LGBTQ rights, you finally can. Here’s how:
Invest with Pride.
One of the nicer things about the rainbow-themed month is how brands supporting the LGBTQ community go all out to show their pride. United Airlines ($UAL) and many others recolor their logo with rainbow colors on social media, making their inclusive ideals visually obvious. Others make a more vocal statement by sponsoring Pride parades across the country.
Before your city’s Pride parade marches into town, research which brands are sponsoring it. Chances are it includes some publicly traded brands. NYC Pride, for example, hosts the largest parade in the U.S. It’s presented by T-Mobile ($TMUS) with about fifty other companies sponsoring the march and associated events.
Check out who supports the non-profits.
There are several major companies with the mission to promote the LGBTQ community. Since they’re non-profits, you can’t invest in them directly. but they often have publicly traded partners.
The Human Rights Campaign is the largest LGBTQ civil rights organization with over 3 million members. They have a list of over fifty corporate partners, or brands that support the HRC’s mission by ensuring equality in the workplace. The list includes many publicly traded brands from Coca-Cola to Target, so you have plenty of options.
If you want more choices, look at the National LGBT Chamber of Commerce. Their mission is to aid companies in increasing diversity and tolerance in the workplace. They were founded with several major publicly traded corporations. Their list of current corporate sponsors includes nearly 100 more. GLAAD, which promotes LGBTQ acceptance in the media, also explicitly thanks several companies on their home page.
ETFs may make it all simpler.
Maybe you’re excited that so many companies support the community that you can’t choose just one. Fret not, for a few exchange-traded funds specifically for the LGBTQ community.
The Workplace Equality Portfolio ETF ($EQLT) was designed for investors to easily invest in pro-LGBTQ companies. It tracks the performance of the Workplace Equality Index, a stock index with about 200 LGBTQ-inclusive companies listed. The index has been around since 2001, so there’s no need to feel cynical and think EQLT is only supporting the community as part of a trend.
The InsightShares LGBT Employment Equality ETF ($PRID) is the most recent ETF, after going launching in January 2018. It also only includes companies who were rated as being extremely LGBTQ-friendly.
If you’re a client with Credit Suisse Group, ($CS), you’re able to invest in another LGBTQ-focused investment product: the Credit Suisse LGBT Equality Portfolio. The company also has an LGBT Equality Index, with over 200 brands that are LGBTQ-friendly, relying on scores from the HRC.
While you still can’t directly invest in causes that support the LGBTQ community, more companies are stepping forward to show their support. Investing in the stock market while making equal rights a priority is becoming increasingly possible, and future investment vehicles supporting the cause are likely to launch in the future. As always, make sure to do your research before investing in the companies or ETFs above to ensure they’re right for you.