Masters in Business
At the Money: Aligning Investments With Personal Values
Nov 1, 2023
Barry Ritholtz speaks with Ari Rosenbaum, Principal at O’Shaughnessy Asset Management, about aligning investments with personal values. They discuss tailoring investments to ideological preferences, utilizing direct indexing, and setting custom screens. Topics also include gender diversity, environmental investing, and creating animal-friendly portfolios. Overall, it explores different ways to create a values-based portfolio and the expressive benefits of these portfolios.
09:33
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Quick takeaways
- Direct indexing allows investors to align their portfolios with their personal values by including or excluding specific stocks based on preferences, such as avoiding controversial topics or prioritizing gender diversity and environmental impact.
- Direct indexing enables investors to incorporate ESG principles into portfolios, allowing for the screening out of objectionable companies and overweighting of companies excelling in areas like corporate governance or environmental sustainability.
Deep dives
Customizing Portfolios to Reflect Personal Values
In this episode of At the Money, the discussion revolves around how investors can align their portfolios with their personal values. Direct indexing is introduced as an investment strategy that allows for the customization of portfolios. With direct indexing, investors have the flexibility to include or exclude specific stocks based on their preferences. For example, investors can avoid stocks associated with controversial topics like abortion or firearms. The host and guest also discuss how direct indexing can cater to investors who prioritize gender diversity or have concerns about environmental impact. By tailoring portfolios to reflect personal values, investors can align their investments with their ethical and social beliefs.
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