Mutual Funds: Abortion Investments And Ethical Considerations

Many mutual funds invest in abortion, and many investors are shocked to discover that they have been profiting from and supporting abortions through their investments. Some mutual funds focus on ethical investing and avoid investing in abortion and other practices that might be considered immoral. However, it can be challenging for non-experts to identify and avoid funds that invest in abortion, especially when considering the added moral element that many fund managers may not understand.

Abortion drugs

For example, in 2012, Hobby Lobby's retirement plan included mutual funds with stakes in companies that produce emergency contraceptive pills, intrauterine devices, and drugs commonly used in abortions. These companies included Pfizer, the maker of Cytotec and Prostin E2, and Forest Laboratories, which makes Cervidil.

The United States Council of Catholic Bishops has called for an "absolute exclusion of investment in companies whose activities include direct participation in or support of abortion." Similarly, Christian investors are advised to avoid regular mutual funds and instead opt for faith-based mutual funds that are screened according to biblical principles and exclude companies that support abortion.

By investing in mutual funds that include abortion drug manufacturers, investors are enabling these funds to invest in sinful companies and are financially tied to causes that contradict their pro-life beliefs.

Abortion facilities

Investing in abortion facilities can be a complex and contentious issue, especially for individuals with strong religious beliefs. Many investors are surprised to learn that their portfolios may include companies that own hospitals or clinics providing abortion procedures. These publicly traded healthcare organizations routinely find their way into investment portfolios, often unbeknownst to investors.

For those with religious convictions or personal values opposing abortion, this discovery can be unsettling, leading to a desire to divest from such companies. Religious organizations, such as the Catholic Church, have clear guidelines for their followers on this matter, advocating for the "absolute exclusion of investment in companies" directly involved in or supporting abortion.

However, navigating the world of investments to avoid abortion facilities can be challenging. It requires diligent research and screening of investment options to ensure alignment with one's values. Some investment advisors specialize in this area, offering expertise in identifying companies that do not conflict with specific religious or ethical beliefs.

Additionally, there is a growing movement to support abortion providers, particularly in light of anticipated changes in legislation. For example, New York's Governor Kathy Hochul announced a $35 million investment to directly support abortion providers, expand capacity, and ensure access for patients.

As an investor, it is essential to understand your investments and make informed decisions that align with your values. This may involve seeking expert advice, conducting thorough research, or utilizing tools that provide transparency into the companies your investments support.

Legislation and promotion

Many pro-life investors are shocked to discover that they have been profiting from and supporting abortions in their 401(k), IRA, mutual funds, and other investment accounts. However, with a little effort, it is possible to not only eliminate abortion from one's portfolio but also to use one's investments to actively support the pro-life movement.

There are software tools available that can help investors analyze the granular data of what the companies they own are involved in from a pro-life perspective. With this information, investors can then take steps to remove abortion from their portfolio.

For example, Inspire Investing helps investors ensure that their money is working toward their financial goals while also supporting the pro-life movement. Inspire invests in companies that are diligently screened to exclude any connection to the abortion industry. In addition, Inspire donates 50% or more of its corporate profits to support Christian ministries, including pro-life ministries.

By investing with companies like Inspire, individuals can ensure that their investments are aligned with their values and beliefs.

Philanthropy

This underinvestment is further exacerbated by the "boom/bust" dynamic, where donations fluctuate significantly in response to changing circumstances. For instance, donations to local abortion funds in Texas surged after the implementation of S.B. 8, which severely restricted abortion access. Yet, in the previous year, several abortion funds lost significant support as donors' priorities shifted to other emergencies. This inconsistency hinders effective planning and service provision.

To address this challenge, abortion rights advocates have emphasised the need for sustained, long-term funding. The Groundswell Fund, for example, has developed a strategic plan to allocate $100 million to grassroots organisations by 2025, demonstrating a commitment to multi-year funding. Major funders like the Ford Foundation and the Hewlett Foundation have also stepped up, providing multi-year grants and increasing their annual budgets for reproductive equity work.

Additionally, institutional philanthropy has an important role in supporting legal and policy advocacy groups. The Ford Foundation, the Hewlett Foundation, and the Groundswell Action Fund are actively funding these efforts, recognising the intersectional nature of abortion rights with other social justice issues.

The philanthropic response to the fall of Roe v. Wade illustrates the sector's ability to adapt and respond to changing circumstances. However, advocates stress the need for a broader approach to reproductive justice, encompassing not just abortion access but also birth justice, climate and economic justice, and freedom from state violence. By adopting this holistic perspective, philanthropy can make a meaningful impact in safeguarding reproductive rights and advancing social progress.

Biotech

Mutual Funds

• Fidelity Advisor Biotechnology Fund Class A (FBTAX): Managed by Eirene Kontopoulos, this fund invests at least 80% of its assets in companies engaged in the research, development, manufacture, and distribution of biotechnological products. Its top holdings include AbbVie Inc., Regeneron Pharmaceuticals Inc., and Vertex Pharmaceuticals Inc.
• Fidelity Select Biotechnology Portfolio (FBIOX): Managed by Rajiv Kaul, this fund also typically invests at least 80% of its assets in companies involved in biotechnology. Its top holdings include Gilead Sciences Inc., Moderna, and AbbVie.
• Franklin Biotechnology Discovery Fund Class A (FBDIX): Managed by Evan McCulloch, Wendy Lam, and Akiva Felt, this fund focuses on securities of biotechnology companies and discovery research firms, including those involved in fields like genomics, genetic engineering, and gene therapy. Its top holdings include Regeneron Pharmaceuticals, Amgen Inc., and Horizon Therapeutics PLC.

ETFs

• IShares Biotechnology ETF (IBB): This ETF owns around 214 biotech stocks, including some of the biggest biotech companies by market capitalization, such as Gilead Sciences, Vertex Pharmaceuticals, and Amgen. It has delivered an average annualized total return of 6.6% since its inception in 2001.
• SPDR S&P Biotech ETF (XBI): This ETF seeks to track the S&P Biotechnology Select Industry Index, giving investors exposure to large-cap, mid-cap, and small-cap biotech stocks. It currently owns around 140 stocks, with top holdings including Alnylam Pharmaceuticals, Viking Therapeutics, and Gilead Sciences.
• Ark Genomic Revolution ETF (ARKG): This ETF, operated by Cathie Wood's Ark Invest, invests in companies that incorporate genomics into their businesses, including gene-editing stocks, molecular diagnostics stocks, and virtual care stocks. Its top holdings include Twist Bioscience, CRISPR Therapeutics, and Recursion Pharmaceuticals.

It is important to note that the abortion debate has implications for the biotech industry. A federal judge's decision in Texas to outlaw an abortion drug has been opposed by several healthcare executives and experts, who argue that it undermines the foundation of all biotech stocks and could have a chilling effect on innovation in women's health.

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