How do we avoid funds that include gun, tobacco, or oil companies (or something similar)?
There is something called socially responsible funds (also referred to as ESG funds) that would avoid certain industries. However, most 401ks don’t offer these funds in their limited fund lineups and that may be the case with your 401k. So some of the funds you’re invested in could have a small allocation to one or more of those companies.
We think we’ll start to see more ESG funds in 401k plans as they have become more popular. For now though, if you have any outside investment accounts, like an IRA or taxable brokerage account, you could invest in socially responsible funds in those accounts, but blooom does not take this into consideration at this time.