How to Get Rid of the Butt
After another mass shooting in America, you may wonder what you can do about the gun violence that is hitting the United States. You could donate to help the families of the victims , support organizations like Everytown for gun safety , make gun safety legislation a major concern when voting for someone , or run for office yourself. You can also stop supporting companies that profit from bloodshed.
Moving away from gun makers isn’t easy for those who own 401 (k) mutual funds or exchange-traded funds or IRAs. The stockpile is doing well (and getting better after the mass shootings, although this one may be different ) and is included in many popular funds, including the Vanguard Small-Cap Index Fund and the Fidelity Value Fund . Goldman Sachs and Blackrock also own shares in guns and ammunition (according to USA Today, Vanguard and BlackRock are the largest owners of American street brands and the Sturm Ruger). “About 35 percent of US equity capital includes investments in an arms and ammunition manufacturer or retailer, totaling more than $ 17 billion spread across more than 2,000 funds,” CBS News reported .
Moving away from companies like Smith & Wesson (a subsidiary of American Outdoor Brands Corporation) or Sturm Ruger can be easy – there are no clean arms manufacturers in the S&P 500, which means you can invest in an S&P index fund. Difficulties arise with companies that sell weapons and ammunition in addition to other goods, such as Walmart. The Big Box Magazine is the largest seller of weapons in the United States, as well as ammunition. Other major sellers include Dick’s Sporting Goods and Cabela’s Inc.
What can you do about this? You can use this website to find out if your funds contain firearms related promotions and, if so, view alternatives. You can invest in ESG funds that I wrote about here (just be aware that they may have higher fees).
But, according to The Street , this is unlikely to affect the industry.
Yet despite hopes , ethical investing and avoiding investment as a protest tool has little impact on industry policy or practice . Smith & Wesson American Outdoor Brands Corporation will not cease to exist just because investors stop lining up. At best, a successful campaign would push stock prices into a fire sale, triggering a massive buyback by the company itself.
However, this will not happen either. The overwhelming evidence is that asset sales campaigns as a form of financial protest have little impact on stock prices. Individual investors may express personal disgust by pulling their money out of an industry that believes the best solution to counter firearms is a nation of armed civilians who live in fear of not being shot first.
In short, you are much more likely to make a difference by refusing to support businesses that sell weapons or ammunition, i.e. not buying anything from them, period, than trying to get rid of them. That said, while the asset sale won’t recoup the 17 lives lost this week in Parkland, Florida, or the nearly 2,000 firearm fatalities in 2018, it does give you control over where your money goes. If you don’t want to support the firearms industry, you don’t have to. And if you really want to see where money matters, these are the politicians that get the most from the National Rifle Association. Demand responsibility from them.