4 Truths About ESG Investing Under a Second Trump Administration. Read The Blog Now!
ESG is … soon to be dead? Not so fast! In this month’s newsletter we’re looking at some hard truths about what a second Trump administration will mean for sustainable investing, but the news isn’t as bad as you may fear. And, we’re sharing some good news and actionable advice at a time when both are desperately needed. Read on:
4 Truths About ESG Investing Under a Second Trump Administration
This month’s blog takes a look at some of the key issues in this year’s election and how you can use your investments to fight for the change you want to see in the world. From human rights, to environmental concerns, to social justice issues, the same passions that drive you in the voting booth can be reflected in how you choose a mutual fund or an ETF.
One key difference between investing and political voting: your investing sustainably has nothing to do with what others decide. Your investment doesn’t have to win over anyone else – it’s your decision alone, and your candidate wins every time! The only way to lose …. Is not to play.
Vanguard Reports On, and Expands Access To, its Voting Choice Program
Looking for some good news related to voting? You may recall that last year, Vanguard announced a Voting Choice pilot program, which offered a limited number of fundholders an option to choose between 4 different slates of proxy votes. Options included voting with company management, voting for an “ESG” slate, and voting based on Vanguard’s recommendations. For a passive fund, low-fee behemoth, this was a significant step and a big win for sustainable investors.
Earlier this fall, Vanguard released data from the pilot, and the numbers were interesting. There was not a majority winner among the four slates, with Vanguard’s recommended slate garnering the highest percentage of votes (43%). More investors chose to go with company board recommendations (30.3%) than with an ESG-aligned slate (24.4%).
For us, the important thing is not how many people voted for what, but rather, that they have a choice in the first place. So we applaud Vanguard’s efforts in this area, and their recent announcement that they are expanding the program, increasing the number of funds eligible for participation, and adding new voting options. And most importantly for us, Vanguard will now allow retirement plan sponsors to participate in the Voting Choice pilot. We are always encouraged when we see new access point to being an active owner – so if you’re in an employer-sponsored retirement plan with Vanguard, bring this up with your sponsor!
Turn that Anxiety into Action
Yes, the news is tough. We get it. And the hardest thing about it, at times, is that it seems like there’s nothing you can do about it. But, investing sustainably IS something you can do about it. So: if you haven’t gotten started with values-based investing yet, and you’re feeling inspired, use that inspiration. Not sure where to start? Our Fund Manager Profiles are a great place to channel that inspiration and turn it into action. Never let a good crisis go to waste!
