Upset with lawmakers’ lack of interest or ability to pass stricter gun laws in the wake of a spate of high-profile crimes involving guns, activists are hitting manufacturers where it hurts—their investment dollars.
The website UnloadYour401K.com helps those looking to divest from gun makers and related industries to find out just how much they have in such stocks, and how to unwind the investment.
The website claims almost $2 billion in mutual fund assets are invested in the three largest gun manufactures. By simply entering the name of a 401(k) provider, a participant can find out how much of that $2 billion is there’s.
The website goes further by offering a pledge for participants to sign promising to avoid gun and gun-related investments in the future.
So, do the website’s backers really believe divestment can change public policy?
“History says ‘yes,’” it notes, before referencing other successful divestment movements. “Because funding is the lifeblood of business, divestment campaigns have been essential components in some of the most successful changes in public policy of the past thirty years. These include changes in U.S. tobacco policy and the end of Apartheid in South Africa.
“As the public outcry over gun violence continues to escalate, investors are beginning to rethink the financial and moral implications of owning the stocks of gun makers who refuse to make even modest changes to make our society safer,” it continues. “At the same time, many investors may not even realize that they own such companies through their mutual funds, retirement accounts, ETFs or other products. As investors of all kinds become more informed of the risks involved, the potential for widespread divestment will grow—and with it, the pressure on the industry to change.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of 401(k) Specialist and Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots. Experienced financial services content executive specializing in creative new media delivery. He joined the American Retirement Association in 2023 as Chief Content Officer, overseeing communications for the organization, as well as its sister organizations.
