was built to serve people who feel neglected by the current financial services industry — and supporting the fight for LGBTQIA+ justice is part of that. One way we do that is through sustainable and impact investing — not only in companies that materially improve the lives of queer and trans people, but also in companies founded by members of these diverse groups.

How Ellevest Private Wealth invests for LGBTQIA+ justice

All investors, regardless of sexuality or gender identity, can build more socially-conscious investment portfolios. We can all invest in businesses that both adopt strong anti-discrimination practices and avoid exploitative business practices that have historically harmed vulnerable communities. At Ellevest, we help our clients do this through a multi-pronged approach to investing. Here’s how that approach works when it comes to LGBTQIA+ justice:

1. We invest in companies with robust corporate diversity and inclusion practices

In the United States alone, one in five people who identify as LGBTQIA+ still report experiencing discrimination based on their identity during the hiring process. (Frustratingly, fewer than half of US states have laws that prevent discrimination based on either sexuality or gender identity.) LGBTQIA+ workers are far more likely to experience discrimination from microaggressions to sexual harassment; trans workers, in particular, are much more likely to remain in entry-level positions and to believe their gender and/or sexuality will be a barrier to career advancement.

Ellevest’s Intentional Impact portfolios invest in companies that take action against these inequities by implementing strong diversity and inclusion practices, as well as robust non-discrimination policies. These companies clearly define sexual orientation and gender identity in their nondiscrimination policies, extend benefits to domestic partners, offer trans-inclusive benefits like gender-affirming health care, display organizational LGBTQIA+ competency, and extend their nondiscrimination standards to contractors and suppliers as well.

2. We invest in companies that prioritize data security and product quality and safety

As of 2019, 70 United Nations member states criminalize consensual same-sex relationships. Breaches of sensitive data are a major concern for international security and civil rights in general, but they’re even more dangerous for LGBTQIA+ people in these regions, where those breaches can expose them to persecution or worse.

So doing right by the LGBTQIA+ community demands that, in deciding where to invest, we evaluate companies based on their policies and practices around data privacy, safety, and management — particularly in industries like tech, where companies have access to large volumes of sensitive consumer or business data. Data security is one of our main criteria when we filter our Intentional Impact portfolios for Product Quality and Safety.

3. We invest in companies with programs that improve access to essential products and services

Another area where LGBTQIA+ people are disproportionately more vulnerable is that of wealth inequality. Queer and trans people collectively experience much higher poverty rates than those who do not: As of October 2019, one in five people who identify as LGBTQIA+ live in poverty; among Black queer people, that rate rises to 30.8%. The pandemic alone cost LGBTQIA+ workers more jobs by a significant margin, and queer people of color lost significantly more jobs than white LGBTQIA+ workers. Also, poverty increases vulnerability to forced labor and other forms of exploitation, which means that LGBTQIA+ workers are dramatically more likely to have trouble obtaining adequate resources and accessing essential services.

Investors must go beyond prioritizing companies that cultivate a queer-friendly workplace for employees and also seek out those whose products, services, and initiatives are designed to eliminate barriers to access — financial and otherwise — for the LGBTQIA+ community. Ellevest Intentional Impact portfolios exclude companies on this basis, filtering with criteria ranging from weak pay structures — those with excessive pay gaps between their highest paid executives and lowest paid workers — to poor labor relations and working conditions.

4. We connect diverse business owners with private capital

In 2020 alone, more than $156.2 billion in capital was invested in US companies — but LGBTQIA+ founders still receive less than 1% of those deals. (No wonder something like 37% of LGBTQIA+ founders still choose not to “out” themselves to investors.) Getting more capital into the hands of people from marginalized groups overall, including but not limited to LGBTQIA+ entrepreneurs, is one of the main priorities of our fund managers, who are a diverse group themselves.

Investing intentionally? Having the right financial team matters.

In order to make your investment strategy match your values, you need a team of planners and advisors in your corner who not only are well-versed in inequity, but also intentionally specialize in avoiding its sources in the financial sector. The first step is understanding the impact your assets are having right now; speak to an Ellevest financial advisor on our Private Wealth Management team if you’re interested in running a health check on your investments so you can better understand how they live up to your values.

At Ellevest Private Wealth Management, diversifying our clients’ investments to achieve market returns is still our top priority, but we believe investors shouldn’t have to sacrifice one to get the other. Ellevest financial advisors can run those portfolio diagnostics using our extensive filtering criteria to show you how and where your current investments might be invested more meaningfully — all while still seeking to minimize tracking error to the market benchmark. We can also assist Intentional Impact clients in proxy voting, which gives investors even more of a voice with the companies they do invest with.

When advisors and investment companies articulate their commitment to social and environmental justice and empower investors with that commitment, building wealth can be as simple as building a better world — for the LGBTQIA+ community and beyond.

‍