Money Talks, So Should You

Q&A: Do LGBT investors tend to invest in LGBT-friendly companies?

Steve Doster
by Steve Doster, The Garrett Network  (@dosterfinancial)

From my experience, the answer is no. I’ve never been contacted by anyone asking about investing in LGBT-friendly companies.

However, almost all of my gay and lesbian friends own stock in Disney! There’s something about Disney that attracts the LGBT community.

READ: 10 warning signs you're getting bad investment advice

Most of the “money activism” in the LGBT community has been in the form of boycotts against certain stores and companies that don’t support equal rights. There used to be one mutual fund that focused on LGBT-friendly companies, but it doesn’t exist any longer.

If you’d like to invest in LGBT-friendly companies, the place to start your search is with the Corporate Equality Index created by the Human Rights Campaign (HRC). Every year, HRC analyzes publicly-traded companies using several criteria. A company will earn more points for achieving different criteria like an equal employment policy that includes sexual orientation & gender identity, providing same-sex partner benefits, and demonstrating a public commitment to the LGBT community.

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If you don’t want to do all of that research, then check out Motif Investing for their Gay Friendly portfolio. This portfolio, which is less than a year old, consists of 25 LGBT-friendly companies that achieved a perfect score from HRC’s Corporate Equality Index. The really cool thing is you can buy all 25 stocks in one single trade for a $9.95 commission.
 

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Steve is president and founder of Doster Financial Planning, a commission-free firm based on San Diego, CA. He is a CERTIFIED FINANCIAL PLANNER™ professional with an MBA fom Arizona State University and a BS in mechanical engineering from the University of Arizona. Steve is proud to say he doesn’t sell financial products or earn commissions on the advice he provides to clients. His primary goal is to educate people to understand and select the best ways to achieve their unique financial future.