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Do You Have Gun Stocks in your Funds?

edited April 2023 in Fund Discussions
Kipplingers

Article tells how you can check on whether your funds own gun manufacturers and lists some gun-free funds. Here’s a few of the gun-free funds listed:

DF Dent Midcap Growth (DFDMX

Parnassus Midcap (PARMX

Baron Emerging Markets (BEXFX

Brown Capital Management International Small Company (BCSVX

Fidelity Select Health Care (FSPHX

T. Rowe Price Global Technology (PRGTX

Comments

  • edited April 2023
    In mutual funds, no. None of the ETF's I hold have them either.
  • @hank: there may be many more gun-manufacturer-free funds out there. The list above comes from Kipplingers 25 favorite MFs, a pretty small sample.
  • The cite given in the article, gunfreefunds.org, is under the As You Sow Invest Your Values umbrella that I've suggested before.

    In calling out Lockheed Martin (LMT), it seems the writer is conflating two different though related issues: military weapons manufacturing and civilian firearms manufacturing. If your concern is about companies involved with the leading cause of death of children in the US, then look at the list of gun free funds.

    According to Money Magazine, there are only two publicly traded US companies that manufacture (civilian guns): Smith & Wesson (SWBI) and Sturm, Ruger & Co. (RGR), though American Outdoor Brands (AOUT) is the parent company of Smith & Wesson.
    https://money.com/avoid-gun-stocks-investing-advice/

    There are many other gun manufacturers, but they tend to be private. Here's a list of the top 25 firearm manufacturers. It includes familiar names like Colt (Colt CZ Group SE, traded on the Prague stock exchange), Beretta (privately owned, Italian parent), and Glock Ges.m.b.H (privately owned).

    https://orchidadvisors.com/top-25-largest-firearm-manufacturers-of-2021/

    GunFreeFunds takes ownership a step further (as noted in the Kiplinger piece) by considering parent companies of privately owned manufacturers. For example, it looks out for ownership of Colt CZ Groupe SE (CZG). Here's its whole list of companies it looks for:
    https://gunfreefunds.org/how-it-works

    M* has an article similar to Kiplingers.
    https://www.morningstar.com/articles/1133372/how-to-find-gun-stocks-in-your-fund-portfolios

    It offers its own sampling of gun free funds
    image


    If you're interested in avoiding companies involved in weapons of war (military contractors, munitions manufacturers, nuclear arms manufacturers, etc.), Invest Your Values provides the site weaponsfreefunds.org.
  • edited April 2023
    BenWP said:

    “ … there may be many more gun-manufacturer-free funds out there. The list above comes from Kipplingers 25 favorite MFs, a pretty small sample.”

    Agree @BenWP - That’s just a small sample. There’s a hard to find link in the article that takes you to a screener.

    Here it is: FUND GUN SCREENER

    By way of example, here’s what the screener produced when I entered ASRAX: ”Gun grade: No holdings flagged for our civilian firearm screens. Assigned a grade of A.”

    Unfortunately, some funds i tried to screen (CEF @ OEF) were not found. One was a fund-of-funds which likely makes the task more difficult.


    Thanks @msf for all the clarification and added information. It gets complicated for sure. I hope some of the major fund companies will go on record and, in some way, shape, or manner, disavow investments in arms manufacturers whose non-military, non-law enforcement related products too often wind up in the wrong hands and do so much damage to innocent persons. (I think there’s already been some limited progress.) There’s likely to be different interpretations and implementation of such policy. But, heavens, we need to start somewhere.
  • Thanks for the link @msf. The scope of guns can be broaden to something much bigger since they can be “dual uses” for civilian and military uses. Depending how they are being use, they can be beneficial to mankind and potentially for military uses as well. Satellites, weather balloons and drones are some examples. Certainly not as easy task for investors to sort out the boundaries in many of these companies.
  • Viewed news program that showed a modified pistol that would fire off 15 rounds in 2 seconds . Just what every gun nut needs !?
  • The Kiplinger list in the initial post is an odd one to achieve this goal. The surprising thing is there aren't really any large bluechip gun companies, despite how much political influence they have in the U.S. Smith & Wesson SWBI is the largest pure play on guns, although Vista Outdoor (VSTO) and Sportsman’s Warehouse Holdings SPWH are bigger companies overall:https://insidermonkey.com/blog/5-biggest-gun-companies-in-the-world-1084538/?singlepage=1 None qualifies as a large cap stock. This article, albeit from 2016, has rather fascinating info on this weird gun company world in what was then the ten biggest companies: https://motherjones.com/politics/2016/06/fully-loaded-ten-biggest-gun-manufacturers-america/
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