INVESTMENTS
A Call for Conscious and Socially Responsible Investing
In light of the harsh shift in government policies and corporations moving away from DEI initiatives,
finding companies that align with your social values and beliefs is more important than ever.
March 27, 2025
Image: Adobe Stock
Image: Wikimedia Commons
Image: Wikimedia Commons
Image: Adobe Stock
USE ARROWS TO MOVE THROUGH IMAGES
By Brad Pappas
The shock and disbelief at the early weeks of Trump’s second presidency are understandable. The rapid policy shifts affecting our country, the world, and particularly DEI initiatives and the transgender community raise an urgent question: What can one single person do in protest? One possible action is divesting from companies supporting Trump’s policies.
For years, LGBTQ investors have asked me about screening out companies with negative biases toward DEI and the queer community. In the past, creating such a screen was difficult due to a lack of concrete data. Most public companies were either supportive or remained silent to avoid brand damage. However, recent events have made it clearer which corporations actively back Trump and his administration.
Image: Wikimedia Commons
Observing the figures who stood alongside Trump at his inauguration provides a starting point for screening investments. Among those present were the CEOs of Apple, Meta, Amazon, Google, and Tesla/Musk. If you invest in large fund companies, you may unknowingly hold stakes in these businesses.
The growing dominance of Index Funds over the past two decades has distorted investment awareness. These funds track major stock market indices, such as the S&P 500, and allocate investments based on market momentum. As stocks rise, Index Funds buy more shares, increasing their weight in the portfolio.
Many in the LGBTQ community may not realize their investments include companies that aligned with Trump. If you own an Index Fund tracking the S&P 500, you are likely invested in businesses whose leaders were visibly supportive of his administration. Corporate political donations are a long-standing practice, often aimed at securing favorable policies. However, some donors, such as Elon Musk, have shown overt enthusiasm for Trump’s return to power, making this a deeply personal issue for investors.
Those with retirement plans, 401(k)s, and portfolios reliant on Index Funds should scrutinize their holdings. A prime example is the Vanguard 500 Index Fund, one of the largest domestic equity index funds. As of December 31, 2024, its top ten holdings include:
Apple, Nvidia, Microsoft, Amazon, Meta, Tesla, Google Class A, Broadcom, Google, Berkshire Hathaway. These are companies that significantly contributed to or had a presence at Trump’s inauguration.
Image: Wikimedia Commons
If this realization has sparked concern, consider consulting an experienced Registered Investment Advisor specializing in Socially Responsible Investing (SRI) and fiduciary responsibility. Investment decisions should align with your financial goals while also reflecting your values.
It is crucial to recognize that dominant companies often possess unique financial strengths, innovative technologies, or market advantages that make them difficult to replace. However, alternatives exist. If you seek to align your investments with your principles, take the necessary steps to research and transition thoughtfully, ensuring your financial security while supporting businesses that uphold your values.
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About the author
Brad is the founder and managing partner of Rocky Mountain Humane Investing LLC, an independent, SEC-registered investment advisor based in Denver, Colorado. Since 1995, he has specialized in cruelty-free, socially responsible investment management, focusing on ethical and sustainable portfolios. Brad earned his B.S. in Investment Finance from Northeastern University in 1983 and remains dedicated to humane investing.