BlackRock lost $90bn investing in fossil fuel companies

[rcjordan]

The Guardian
https://www.theguardian.com/environment/2019/jul/31/blackrock-lost-90bn-investing-in-fossil-fuel-companies-report-finds

[littleman]

BlackRock has denied responsibility for its fossil fuel investments because the majority of its funds track investment indices which are controlled by third parties, meaning it does not choose individual companies to back.

That's a funny statement there.

[ergophobe]

That's a funny statement there.

Is it? Everyone who is invested in a Vanguard Index Fund is in the same situation. The fund manager has no choice about what to hold in an S&P 500 fund. It's going to have a lot of fossil fuel holdings.

In other words, if you did the same analysis of Vanguard, it might look even worse.

[Brad]

Yeah, all the index funds are like that.  The advantage of an index fund is lower broker management fees since the fund just mirrors the makeup of the index.

[littleman]

I am not saying it would be easy, but everyone has a choice of what as to how they invest their money.  A large institution like that could to exclude any sector and still keep transaction fees minimal.

FYI:
https://fossilfreefunds.org/families?q=Vanguard

[ergophobe]

Yes, they could, but customers demand 500 and total market index funds. I'm in a "socially responsible " fund but the fees are a bit higher than a straight index fund.

So though Vanguard and Schwab and probably black rock offer those funds, most customers aren't buying them. I don't blame companies for selling what people want, especially when it comes to stocks and mutual funds