Many companies featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research may determine where and how companies appear. Learn more about how we make money.

Published: Aug 22, 2022 3 min read

Money is not a client of any investment adviser featured on this page. The information provided on this page is for educational purposes only and is not intended as investment advice. Money does not offer advisory services.

Photo collage of multiple grey figures in a conference room and one person in color
Eddie Lee for Money

Black and Hispanic Americans care more about the social impact of the companies they’re investing in than other investors.

That's according to new research from J.P. Morgan Wealth Management. In a survey of more than 2,000 people which conducted in April and May, 70% of Black Americans and 46% of Hispanic Americans said it’s important that their investments are in firms that are owned, started and/or operated by Black, Indigenous and People of Color (BIPOC).

That's compared to 27% of white and 31% of Asian Americans who said the same. The differences don't end there: Black and Hispanic respondents in the survey expressed a greater inclination than their white counterparts to invest their money in a way that promotes equity more broadly, too.

They really want to be "change agents for their families, for their communities and potentially even the world at large," says Jeanne Sun, general manager of inclusive investing at J.P. Morgan Wealth Management.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Build a portfolio through a unique investing experience
SoFi lets you invest in stocks, ETFs, and more with as little as $5. Share insights in a community and access a wealth of educational content.
HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas
Start Investing

Environmental, social and governance factors (ESG) investing has grown in popularity in recent years, especially among younger investors. Gen Z, for instance, is a highly racially and ethnically diverse generation whose members have grown up with issues like climate change front and center. Understandably, they want their investments to reflect their values.

The study also found that 72% of both Black and Hispanic respondents said it's important their investments have a positive environmental impact compared to 55% of white respondents. Meanwhile, 60% of Black Americans and 48% of Hispanic Americans indicated it's important for their investments to be women-owned, started and/or operated, compared to 30% of white respondents.

Overall, 66% of Black Americans and 54% of Hispanic Americans say they want their investments to promote gender and racial equity and diversity, compared to 35% of white Americans.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Time in the market beats timing the market
The brokerage you choose matters. Try SoFi, the investing platform helping people become better investors. See what makes us different.
Start Investing

More control over choosing stocks and other investments

In addition to a preference for ESG investing, Black and Hispanic Americans said they want to have more control over their portfolios, according to the survey.

The research shows that 59% of Black Americans and 57% of Hispanic Americans want to take an active role in choosing the stocks, bonds or funds that make up their investment portfolio.

That's compared to 46% of white Americans.

"There are different needs that need to be met and different preferences that people are expressing," Sun says.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
byte Invisible Braces – over 200,000 confident smiles can't be wrong!
With byte's doctor-directed treatment, you can get straight teeth with convenience and discretion. Get started today for $70 or less per month.
Get Your Kit Today

More from Money:

Socially Conscious Investors Know Crypto Is Bad for the Environment. They’re Buying It Anyway

How to Buy Stocks

7 Best Online Stock Trading Platforms of 2022