Investors sickened by the tragedy are likely considering dropping gun and ammunition manufacturers from their portfolios.
Mass shootings like the one this week at an elementary school in Uvalde, Texas usually boost gun sales—and gun stocks. But some investors sickened by the tragedy are likely considering dropping gun and ammunition manufacturers from their portfolios.
In recent years, asset managers like Blackrock and Vanguard have offered alternatives to funds that invest in gun stocks, part of a broader trend towards more socially responsible investing. (Although, Blackrock is still the largest institutional shareholder of three gun manufacturers.)
For the average investor, who’s unlikely to be very exposed to gun stocks, selling them might be more of a symbolic gesture. Most investors may have exposure to Walmart which sells guns, although gun sales are a small part of the company’s overall revenue, noted John Hale, global head of sustainable investing research at Morningstar.
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