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Alex Witt, CFA
Alex Witt, CFA
Prosperian Wealth Management Financial Advisor
https://www.prosperianwealth.com/ (937) 714-7649

A graduate of The Ohio State University with a degree in Accounting, Alex has spent his entire professional career in the financial services industry. The first 4 years of his career were in investment research covering Consumer stocks at Capital Group, Evercore ISI, and RBC Capital Markets in New York. After being introduced to Prosperian as a client, Alex joined the team in July of 2021 because of a desire to work in a role where he could make a more direct impact on the personal, professional, and financial lives of young professionals and families.

Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. Prosperian Wealth Management, LLC is not an affiliate or subsidiary of PAS or Guardian. Prosperian Wealth Management, LLC is not registered in any state or with the U.S. Securities and Exchange Commission as a Registered Investment Advisor. AR Insurance License Number - 19960171, CA Insurance License Number - 4157156.

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How to Invest in LGBTQ+ Friendly Companies

Investment Read Time: 3 min

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, a great deal of research tells a different story. In fact, some 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. Census.gov, 2023
3. Investopedia.com, November 28, 2022
4. Investopedia.com, June 8, 2023
5. MSCI.com, 2023

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.

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