I’m a big believer in index funds, but how do you communicate with large investment firms like Fidelity or Vanguard to convince them to divest from weapons manufacturers and other firms that are connected to the NRA? Should I just contact them and ask them to redirect my funds to (general) social justice oriented index funds? Or is that a cop out? (We’re not talking about any huge amount of money here.)
Whenever possible, we invest in individual stocks of companies that save lives.
I can’t monitor retirement funds on that level. This isn’t fun money. Individual stocks (no matter what they are) are too risky for me. Also, it’s too costly for me to buy and sell individual stocks.
Index funds. You’re stuck with the index. Probably some specialized funds that don’t do tobacco, guns, alcohol, etc. Youll probably need to do you own research. Fidelity or vanguard may be able to give you a list.
Here’s a tool to at least get a handle on what you own and the exposure in your holdings. It also has the open of searching for investment funds with little to no exposure. Granted, it is only as accurate as what is reported as of the last filing date.
I suppose, index funds are defined by the fact that they aren’t curated in any way. So I should assume that an email from a small time investor couldn’t impact the mix. If enough people abandon the general index and switch to social justice funds (or if more people act like @BunsenBurner and invest with their conscience) then the return on those should increase and Fidelity/Vanguard should sell their weapons shares. If I switch earlier then I should, in theory, make out better than if I switch later. (Applying an Econ degree here, but I know nothing about real life funds.)
Funds have higher commissions to trade than individual stocks ( per trade).
Funds have management fees but many, many funds are no load funds with no cost to purchase or sell.
It isn’t that difficult to find actively managed funds without gun company exposure according to that website I linked to above.
Taking about per trade, dos. It costs me $7 to buy stock, it costs me $20 to buy MF.
I’m talking about per trade as well. If you go with Fidelity or many other fund families, you are charged $0 to purchase or sell a mutual fund. Nothing. I wouldn’t pay to purchase or sell a fund. They are getting their management fee already. Fees for trades in individual stocks are $4.95 per trade as well. Who do you use for your investing?
Fidelity does not let me trade stocks as cheaply as Etrade. I am not a heavy trader, so it is $7, not $5. No load funds are not the best middle term (a few months to a year).
Anyway, back to ethical investments. 
$4.95 < $6.95
Dos, I keep enough in Fidelity to make your retirement solid.
Tell them I do not like their interface. Not as bad as Vanguard, but does not come close to Etrade or Schwab (have all of the above).
https://money.usnews.com/investing/articles/2016-07-14/how-to-invest-in-funds-that-exclude-weapons
Google will bring up more stuff. Just be careful - it is a jungle out there.
We use only no gun and no tobacco funds. These are different from social justice funds I think. However it’s time to check.
Index funds are designed to match or track an index. Therefore those funds own stocks that are in the index. The fund companies can’t just change the index for social reasons or for individual investors.
It would be your job to track an index that does not invest in stocks you disagree with or find an actively managed fund that suits your needs.
TIAA-CREF has a social choice fund.
Here’s an interesting article with talk from retailers and Wall Street related to this issue. If you want to divest from gun manufacturers, you might want to consider divesting from those retailers who spur sales for things like AR-15s or whatever guns you object to, like Cabela’s and other sporting good stores. (WalMart stopped selling assault rifles back in 2015)
LOL, dos, I was typing a similar post. Agree.
The divestment movement was an effective part of ending apartheid in South Africa.
I used to be in that social choice fund, but I’ve moved all of my money with that company into straight up TIAA. It’s not much as exH told me to move into Fidelity after I had used TIAA for first 6-9 months many years ago and I did. I wish I had an option of a target date FIdelity fund that was socially conscious with excellent returns:)