How to build an investment portfolio that supports racial justice

The video discusses the role of corporations in addressing racial injustice and how investors can support racial justice through ESG (Environmental, Social, and Governance) investing. ESG investing is an investment strategy that considers financial criteria along with social and environmental impacts. The video highlights the challenges in defining and measuring ESG criteria, especially the social aspect, and recent initiatives to improve transparency and accountability. It also notes the growing popularity of ESG investing and its resilience during market downturns, suggesting that increased investor demand will drive innovation and transparency in the industry.

What is ESG investing primarily focused on?

• Charitable donations

• Consumer spending

• Buying products from Black-owned businesses

• Selecting stocks and bonds based on financial and societal impact

Which of the following is NOT a component of ESG criteria?

• Carbon emissions

• Board oversight

• Product pricing

• Gender equity

What challenge does the industry face in measuring the social impact of ESG?

• Lack of financial data

• Too many environmental metrics

• Excessive transparency

• Difficulty in quantifying social principles

Which company has created an index specifically focused on racial justice?

• OpenInvest

• MSCI

• Sustainalytics

• Calvert Research and Management

What is the significance of the racial empowerment ETF launched by Impact Shares?

• It is the first ETF to focus on environmental issues

• It is backed by the NAACP and focuses on racial empowerment

• It is the largest ETF in the market

• It focuses solely on gender equity

What trend was observed in ESG investing during the first quarter of 2020?

• Increase in outflows from sustainable funds

• Resilience in global demand despite market downturns

• Decrease in global demand

• Decline in investor interest

How can investors create a socially responsible portfolio?

• By investing in traditional stocks

• By donating to charities

• By buying products from ethical brands

• By analyzing different ESG methodologies and aligning them with personal values