You may be investing in gun manufacturers without knowing it.Here’s how to find out

They are likely to do so.

In recent years, large asset managers like BlackRock have offered investors the opportunity to invest in alternative funds that don’t have exposure to gun stocks. This is part of a wider movement of investors who prefer to own companies with managers of environmental, social and governance (ESG) issues.

But most passive investors who put some retirement savings in targeted funds do have exposure to these companies.

The market capitalizations are $1.2 billion and $679 million, respectively. Sturmrug (RGR) and Smith & Wesson Brands (SWBI) are considered small-cap stocks and are not included in the S&P 500, but they are included in the Russell 2000, a popular small-cap market index.

If you own a small-cap index fund or an extended-market index fund, you may have some exposure to these stocks, albeit a very small one. Sturm Ruger’s weight in Russell 2000 is only 0.05%, while Smith & Wesson’s weight is 0.03%.

If you have money to invest in a target date 401(k) fund, you may also have some exposure to these stocks.

Despite offering alternative funding and speaking out for social responsibility in the wake of the shooting, blackstone (black) and Pioneer remain the two largest institutional shareholders of the two publicly traded U.S. firearms makers. Blackrock owns about 8% of Smith & Wesson Brands and more than 16% of Sturm, Ruger & Co.

retailer

Your opportunity to own a gun retailer such as walmart (WMT), quite high in your portfolio.other retailers like big 5 (BGFV) and Dick’s Sporting Goods (DKS) Not very popular, but still included in the index. But while Walmart sells a lot of guns, firearms make up a fairly small percentage of its total sales, with Walmart accounting for less than 1% of total sales in the S&P 500.

For Walmart and Dick’s Sporting Goods, gun sales account for less than 5% of total revenue, according to Morningstar Sustainalytics.

Since a mass shooting at a Walmart in El Paso, Texas, in 2019, the company has stopped selling handguns and only sells firearms for hunting. It hasn’t sold assault rifles since 2015. Customers must be at least 21 years old to purchase firearms in Walmart stores.

How to find out if you own a gun manufacturer or retailer

As You Sow is a nonprofit advocacy organization that has created two searchable databases called Gun Free Fund and Arms Free Fund. Just enter your fund name to see if there is any affiliation with a gun or weapons company. The 30-year-old activist group also offers some alternative investment ideas for those looking to divest.
For those who haven’t invested yet, the As You Sow post Fund rating Contact firearms for comparison.

Is it worth stripping?

It’s a question that only individual investors can answer, but if one wonders if divestment will have an impact – the answer is complicated. The divestment campaign didn’t really workempirically, index fund investors have little exposure to these companies in the first place.
Those who are morally opposed to owning stock in a gun manufacturer or gun retailer will not find it hard to invest their money in more than 300 Fund Does not include firearm-adjacent companies.

As a shareholder, can I have an influence?

BlackRock and Vanguard own large percentages of shares in the two publicly traded U.S. gun makers, which means they have a lot of sway over the company’s future. They will be able to exercise that power in a proxy vote on June 1.

Strum Ruger shareholders will vote on a proposal from CommonSpirit Health that would require the company to conduct a third-party assessment of the human rights impact of its products. The resolution is intended for the company to admit to misuse of its weapons and to “take concrete steps to remedy the adverse effects.”

Sturm Ruger recommends shareholders vote against the proposal.

“Despite the insignificant ownership of company stock, proponents are using the proxy system to advance their gun control agenda through legislation and other means,” Stroomrug wrote in a letter to shareholders.