Investing for Racial Justice & Equality

I find myself in recent days thinking, “what else can I be doing to be anti-racist and support the #BLM movement?” Being an investment nerd, that’s where my mind naturally goes, although it is an often overlooked area by most people. The concept of impact investing is to use your investment dollars to buy stock in companies that support causes you care about. I only found 2 impact investing options that focus on racial justice & equality and wanted to share them with my fellow NYC Money Mavens. Listed below is more information on each of them.

As always, if you think they may be a fit for your portfolio, I recommend talking with your financial advisor before making any changes. If you do make changes, be aware of any tax consequences or fees you may incur from making trades. 

Impact Shares NAACP Minority Empowerment ETF, NACP
https://impactetfs.org/naacp-etf/

According to MarketWatch, this is “the only financial product that explicitly addresses issues of racial inequality, doing so with the backing of one of America’s oldest and most prestigious civil rights groups.” The NACP ETF invests in 175 companies that have been screened for 10 criteria including Board diversity, the quality of the company’s discrimination policy, the effectiveness of their community development programs and  if the company is working to close the digital divide. Additionally, any net profits from the fund are donated to the NAACP.

OpenInvest Racial Justice Cause
https://www.openinvest.com/causes/invest-racial-justice

From their website: OpenInvest has identified companies that hold themselves accountable to the public regarding their progress on employee diversity and their commitment to environmental justice. Our Racial Justice cause allows any investor to tailor their investments to only include those companies who are transparent about their progress on diversity targets, and to divest from those that disproportionately pollute in communities of color. 

Do you know of other ways to invest in racial justice & equality? If so, please mention them in the comments below!