ETFs That Deliberately Avoid Gun Exposure

In response to the increased frequency of violent mass shootings, some are beginning to question investments associated with gun manufacturers. With socially responsible ETFs, investors may find a way to invest conscientiously.

“Investors have many choices now to make a positive impact on society and to align their investment with their personal values,” Linda Zhang, chief executive of Purview Investments, which offers ESG ETF managed portfolios, told Bloomberg. “The time is really to act now, there are no excuses not to if you strongly believe in these principles.”

For instance, the iShares MSCI KLD 400 Social ETF (NYSEArca: DSI) is one of the oldest and largest socially responsible ETF themed investments out there. The ETF explicitly avoids companies involved in “civilian firearms.”

“Investors have the choice,” said Martin Kremenstein, head of ETFs at Nuveen, which runs eight ESG funds, all of which exclude companies that earn 50% of their revenue, or more than $100 million, selling civilian firearms. “They have enough opportunity to buy the product out there. If there’s something they care about, they can make that decision.”