Why doesn’t Just Futures offer funds from Vanguard, BlackRock, or Fidelity?
Millions of organizations and ordinary people hire Vanguard, BlackRock, or Fidelity to manage their money. In fact, Vanguard, BlackRock, and Fidelity are three of the world’s largest asset managers. For generations, these giants have invested their clients’ money in ways that Just Futures believes enrich a small number of privileged people and ultimately harm the rest of us.
Largest investors into fossil fuels, private prisons, weapons manufacturing, and immigration detention
By investing in fossil fuels, private prisons, weapons manufacturing, and immigration detention, Vanguard, BlackRock, and Fidelity help these harmful industries grow. For example:
- Fossil fuel companies’ business practices pollute our soil, water, and air. Out of all the companies in the world, Vanguard invests the most money into the fossil fuel industry. BlackRock invests the second highest amount. In 2023, five big fossil fuel companies issued new bonds to raise more than $12 billion total. Vanguard and BlackRock invested into four of the five bonds, while Fidelity invested into two of them.
- Thousands of companies profit from policing, prisons, and immigrant detention centers. This large industry causes much harm. For example, companies that run detention centers have an incentive to save money. So, they sometimes skimp on providing water, nutritious food, or medical care. For example, in 2023, GEO Group prison guards did not provide care for a seriously injured man. Instead, they locked him in a cell. He died. CoreCivic and GEO Group are the world’s largest private prison operators. They both, “[own and operate] prisons and jails, including immigration jails and ‘community corrections’ centers, and [use] forced prison labor.” As of December 2024, the institution that invested the highest amount in CoreCivic ($368 million) and GEO ($592 million) was BlackRock. Vanguard invested the second highest amounts.
- Military weapons kill and injure many people and cause extensive environmental harm. Based on 2023 revenue, Lockheed Martin is the highest-earning military weapon maker. Vanguard and BlackRock are among the list of top investors. And Vanguard, BlackRock, and Fidelity are all among the ten companies that invested the most money into nuclear weapons producers in 2023.
Blocking efforts to improve corporate behavior
Because Vanguard, BlackRock, and Fidelity manage such massive amounts of money, they have great influence over decisions at major corporations. These three asset managers use their shareholder power to block efforts that would help hold corporations accountable.
For example, the report Big Money, Big Problems explains how many individuals and organizations want companies to publicly share how they donate to political campaigns and lobbying efforts. But, “In 2023, BlackRock, State Street, Fidelity, and Vanguard consistently blocked shareholder proposals seeking greater disclosure of corporate electoral and legislative spending.”
What are the consequences of Vanguard, BlackRock, and Fidelity blocking proposals that would push companies to communicate to the public about their donations to political campaigns or lobby activities? First, Just Futures believes it is bad for democracy. It lets companies secretly use large amounts of money to help their preferred politicians win elections, or to push politicians to pass laws that serve a small group of privileged people. This process makes politicians work more for wealthy, powerful executives and less for everyday people. Political spending and lobby disclosures help activists point out when companies are acting in ways that harm ordinary communities. Then, companies that care about their public reputation have more reason to think twice about how they spend.
“No” votes by Vanguard, BlackRock, and Fidelity also make it harder for poor and working people to prosper. By allowing companies to keep political spending and lobbying secret, these three big asset managers are helping large corporations hire lobbyists to push for policies that keep ordinary people down: “Corporate lobbyists have exacerbated racial inequities by blocking environmental and consumer protection regulations, defeating attempts to raise the minimum wage, and passing laws curtailing people’s right to organize and protest.”
Finally, by allowing companies to keep political spending and lobbying secret, Vanguard, BlackRock, and Fidelity threaten our overall economy. When one corporation supports a politician or law that helps that particular company get ahead, it can have negative effects, also called “externalities,” on “other companies, taxpayers, consumers, and workers – which ultimately hampers economic value creation."
What about their “responsible” funds?
The term “greenwashing” describes how some companies use labels like "responsible," “sustainable,” or “environmental, social, and governance (ESG)” to make their product seem like it has a more positive impact than it actually does. Many researchers have exposed these asset managers’ greenwashing practices. For example, “Vanguard’s ESG funds invest billions in sectors that pose a high risk for low-income and BIPOC communities. Nearly one third, or 32%, of the holdings in Vanguard’s largest U.S.-based ESG funds are in high risk sectors.”
Personal financial incentives of powerful individuals at Vanguard, BlackRock, and Fidelity could help explain why their so-called responsible funds invest in harmful industries. At Fidelity and BlackRock, for example, executives and trustees have deep ties to the fossil fuel industry.
But, even if some Vanguard, BlackRock, or Fidelity funds do invest mainly in responsible companies, Just Futures would not offer those funds. We think that if these three asset managers did a small amount of responsible investing, it would not make up for their overall investment record, which causes massive harm.
You can help build a regenerative economy
Together, we can disrupt business as usual. By uniting to move our money into less harmful investments, we can begin to create an economy that works for US. To get monthly tips on how you can be part of the movement, sign up for Just Futures’ newsletter.
About Just Futures’ “Movement” Research
Just Futures believes that people who have suffered most from giant corporations’ harmful practices should have the chance to lead the movement for progress. To help make this vision real, we prioritize reporting from those most-harmed communities. Our investment screening process includes data from Black, Indigenous, and People of Color (BIPOC) led organizations that exist to serve vulnerable communities.
~Lisa, Manager of Coalitions and Worker Power
If your employer doesn't offer a retirement plan, or if they contract with a different administrator, we’d love to show you Just Futures’ services! You can reach us at info@justfutures.com.