Actually, I can’t blame the Bloomberg News organization for this article — it’s simply a report on a new anti-gun group’s website offering such advice for those who don’t want to invest in gun manufacturers’ stocks. In fact, the Bloomberg article warns against it:
One option for those who donâ€™t want exposure to gunmakers is to switch to a socially responsible fund. But, at least according to a Mercer survey, just 14 percent of defined-contribution retirement plans offered such an option in 2011 (the firmâ€™s most recent numbers). Thereâ€™s some logic to this, too: Retirement plans have also found that too many fund options overwhelm employees.
Or, the gun-averse could take drastic measures and switch out of any fund in their retirement plan that owns small- or mid-cap stocks. All three gun companies are relatively small, and arenâ€™t included in the large-cap S&P 500 index. By buying an S&P 500 fund, they wonâ€™t own a gunmaker, though theyâ€™ll still get their share of defense companies, whose guns can be sizably larger. And smaller stocks have tended to do better over time, so you may be shooting yourself in the foot.
More at the link.
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