The Rise of the Values-Driven Investor #infographic


The Rise of the Values-Driven Investor #infographic

Many buyers today are known to be "values-driven," meaning that before making a purchase, they consider the role of a business on environmental and social issues.

Such individuals can study a company's credibility, boycott brands that are not associated with their values, and avoid goods that negatively impact the climate. However, these kinds of issues do not only influence the products people buy, they also change the way people spend.

In this New York Life Investments infographic, we profile the value-driven investor and explore the various ways in which their issues can be integrated into an investment portfolio.

Investors motivated by ideals aim to align their investments with their personal convictions and create a positive social impact. Because of these priorities, when choosing investments, they are naturally motivated to weigh environmental, social , and governance (ESG) variables.

One common myth is that this form of investment is for millennials only, but survey data shows that this is far from the facts.

While ESG investing is the most common among younger investors, with 80 percent of correspondents aged 55 + showing interest, older investors are not far behind. As seen in the table below, this interest also spreads through wealth ranges.

Clearly, ESG investment has attracted the attention of a very diverse group of individuals, but what kinds of problems do these value-driven investors really care about?

ESG exclusionary investment, also known as "negative screening," is the first method. For investors who want their portfolios to be fully matched with their beliefs and principles, this approach is well-suited.

It includes minimizing, or preventing, exposure to particular industries that are contradictory to one's principles. Tobacco, gambling, alcohol, and fossil fuels are sectors generally filtered out, the latter of which has gained considerable attention in recent years.

The Rise of the Values-Driven Investor #infographic

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