Over the past few years, we have seen some progress in relation to racial justice thanks to the Black Lives Matter movement. However, there is still a long way to go. Here is how you can combat racism with your investments.
Racial justice investing
Combating racism means using your investments to support racial justice. In other words, using impact investing to promote inclusion and diversity. Racial justice investing can look like many different things. For example, investing in Black-owned businesses and companies that emphasize diversity, or avoiding investing in companies that have had diversity-related controversies and negatively impact communities of color.
With the rise in impact investing over the years, there are now more opportunities than ever to combat racism with your investments. While impact investing is generally related to improving the good of society, many impact investment advisors and companies have focused on investing in diversity.
While you can invest in companies that emphasize diversity, you can also invest in Black-owned businesses and startups, as previously mentioned. For example, there is a racial justice-focused exchange-traded fund. It is called the Impact Shares NAACP Minority Empowerment ETF. This fund is designed to emphasize companies in the United States that have strong racial justice policies in place. You can learn more about it here.
Why should we be investing in diversity?
Discrimination based on race is something that has been a reality in this country for centuries, and centuries later, we are still living it on a daily basis. For us, the fight for racial justice means committing to equitable policies that prioritize the humanity of all people. What does that look like? For our country? For companies? For individuals? Although our commitments may look different, what remains the same is our commitment to a better future for all people.
You might think that there is nothing you can do to combat discrimination in the US, but as investors, there is a clear and impactful way for us to act: We can divest from companies that have a history of discrimination and invest in companies that are doing everything to fight racial injustice and promote human rights, diversity, and inclusion.
Investing in diversity is one way that we can combat systemic racism that is still so prominent in our country. Committing to supporting human rights, equitable policies, and diversification can all be supported through our investments. In a world where it is so easy to feel small and helpless, investing in diversity gives us hope that we can help create an anti-racist and equitable future.
How can you combat racism with your investments?
Whether you are a newbie investor or a seasoned pro, anyone can invest in diversity. As previously mentioned, you can invest in companies that are Black-owned or BIPOC-owned and you can invest in companies that emphasize diversity. However, it can be difficult to find out where to start. Luckily, it is not as tricky as it may seem!
First of all, if you are just getting started in your investment journey, you can begin by looking for investment advisors and companies that have portfolios centralized around diversity. For example, we actually have an investment portfolio that invests in human rights and diversity. However, we will talk about that more later. Additionally, you can research investment advisors and companies that are Black-owned. All it takes is a couple of Google searches to find one that is right for you.
If you are a seasoned pro when it comes to investing, you can always talk to your advisor to see what options are available to you. There are so many options for investing in diversity, all you need to do is take the time to look for options that are right for you. The bottom line is there are so many options for you to combat racism with your investments.
What does investing in diversity look like at Invested Interests?
Investing in diversity is something that we are very passionate about. We know that with our investments, we can make a difference in the world. That is why we specialize in impact investing, with the hope that we can create a better future for all.
At Invested Interests, we take a lot of pride in our investment portfolios. Especially our human rights and diversity portfolio. This portfolio invests in companies that promote fair and equitable working conditions, companies with diverse boards, and workforces, companies that offer equal pay for equal work, and companies that actively care about the safety and well-being of communities. This portfolio also avoids oppressive regimes, companies with little to no diversity, and companies that have had diversity-related controversies.
If combating racism with your investments is something that you are interested in, we would love to hear from you. If you would like to get started with investing in diversity, you can reach out to our team using this link.