Why the US Election Has Spurred on Socially Responsible Investing

Photo courtesy of Element5 Digital via Unsplash. Article by James Ledbetter. Worth – February 10, 2021.

Elections, the saying goes, have consequences. Typically, the consequences mean who gets appointed for important positions, or which legislation gets passed. But often enough, elections also have consequences for investments and investing strategy.

Several investment professionals have recently argued that the presidential election in November (and the Georgia runoff elections in January that gave the Democrats a technical majority in the Senate) has already affected the way that many wealthy Americans are pursuing their investments.

Jay Shah, president of the wealth management firm Personal Capital, says that in early 2020, investors were collectively requesting that about one of every five new dollars coming into his firm go into socially responsible portfolios. Around November, that ratio shifted to about one out of every four, and as the new year began, it has become one out of three. “There’s just a macro trend of people wanting to make a statement, people want to put their money behind their position,” Shah says. […]

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