Is My Money Doing Harm? How to Find Out What Your Investments Are Really Supporting

Most investors spend more time researching a new phone than they do understanding what companies are in their mutual funds. Here's how to look under the hood and what to do if you don't like what you find.

There's a question more and more investors are asking themselves: What is my money actually doing while I sleep? Which companies are included in the funds in my 401(k)? Is my index fund invested in fossil fuel companies, weapons manufacturers, or corporations with records of racial and gender discrimination? Or, is my money actually funding a sustainable and inclusive economy? Am I invested for the world I want to live in?

For most people, the honest answer is: I have no idea. And that's not because they don't care. It's because the financial industry has never made it easy to find out.

This post is here to change that. We'll walk you through exactly how to find out what your investments are really supporting, what questions to ask, and what your options are if your portfolio doesn't reflect your values.

Why Most Investors Don't Know What They Own  

The modern investment industry was built for scale, not transparency. When you invest in a mutual fund or a target-date retirement fund, you're buying a slice of hundreds,  sometimes thousands of companies at once and unless you dig into a document called a prospectus or a quarterly holdings report, you may never know what  companies you own.

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The vast majority of Americans hold their savings in broad market index funds or employer-sponsored 401(k) plans that are invested in the S&P 500 or similar indices. Those indices include oil and gas companies, private prison operators, tobacco manufacturers, defense contractors, and companies with documented records of workplace discrimination and environmental harm.

The good news is that finding out what your money is invested in is not as hard as the industry makes it seem. Here's where to start.

Step-by-Step: How to Find Out What Your Mutual Fund Invests In

1. Find the fund's name and ticker symbol

Log into your brokerage, 401(k), or investment account and write down the name and ticker symbol of each fund you own. Examples: VFIAX (Vanguard S&P 500), FXAIX (Fidelity 500 Index), NIAGX (Nia Impact Solutions Fund).

2. Look up the fund's holdings

Go to the fund company's website and look for "portfolio holdings" or "top holdings." Most funds are required to publish their full holdings quarterly. You can also search "[fund ticker] holdings" for a clear breakdown.

3. Read the prospectus and fund fact sheet

The prospectus tells you what types of companies the fund is allowed to invest in, what it excludes (if anything), and how it makes investment decisions. A fund fact sheet gives you the quick summary. Both are generally available on the fund's website.

4. Check the fund's proxy voting record

This one surprises most people. Every mutual fund casts votes on shareholder resolutions on your behalf on issues like executive pay, board diversity, climate disclosures, and worker rights. You have the right to see how those votes are cast. Search "[fund name] proxy voting record" or check the SEC's EDGAR database.

5. Ask your financial advisor

If you work with a financial advisor, ask them directly: "Can you show me what companies my current funds are invested in, and how they vote on shareholder resolutions?" A good advisor will be able to answer these questions and if they can't, that's important information too.

What to Look for and What to Watch Out For

Once you have your fund's holdings in front of you, here are the key questions to ask yourself:

• Fossil fuels: Does the fund hold significant positions in oil, gas, or coal companies? Even funds that market themselves as "sustainable" sometimes hold fossil fuel companies. How about the industries that are “fossil fuel adjacent” such as airlines, big plastic producers (like soda brands), or the big banks like Wells Fargo or JP Morgan Chase that finance the fossil fuel industry? 

• Weapons and defense: Many broad market index funds hold major defense contractors largely supporting war efforts. If this conflicts with your values, look for funds with explicit exclusion screens.

• Leadership diversity: Do the companies in the fund include women and people of color in executive leadership and on their boards? Or do the holdings skew heavily toward companies with all-male leadership teams?

• Labor practices: Are portfolio companies known for strong human capital management practices? Or for worker mistreatment, forced arbitration of discrimination claims, or suppression of employees' rights to organize?

• Greenwashing: Does the fund call itself "sustainable" or "responsible" yet holds companies with poor environmental track records? The label on a fund doesn't always match what's inside it. Read the holdings, not just the marketing.

A note on "ESG" labels

Not all funds that call themselves ESG, sustainable, or socially responsible are created equal. Some use only light-touch screening. Others rely on third-party rating agencies that have been criticized for inconsistency. The most meaningful distinctions are based on these 3 components: funds that exclude harmful companies, include companies bringing forward needed solutions, actively engage with the companies they hold to push for improvement, and funds that do all three. Ask which approach your fund takes.

What to Do If You Don't Like What You Find

Finding out that your investments conflict with your values can feel disorienting, especially if those investments are in a 401(k) or retirement account you've been contributing to for years. The important thing to know is that you have more options than you might think.

If you invest through a brokerage account

You have the most flexibility here. You can research and select individual funds that align with your values, including values-aligned mutual funds like NIAGX that are specifically designed to invest in a concentrated set of companies advancing diversity, sustainability, and social justice and to actively engage with those companies through shareholder advocacy.

If you invest through a financial advisor

Ask your advisor directly about values-aligned options. Many advisors now have access to impact investing strategies and separately managed accounts (SMAs) that can be customized to your priorities. If your advisor isn't familiar with this space, that's a conversation worth having or a prompt to seek out an advisor who specializes in values-aligned investing.

If your investments are in a 401(k)

Most 401(k) plans offer a limited menu of funds chosen by your employer. You can review whether any of the available options are more aligned with your values, you may be surprised to find options like NIAGX included. If you don’t see options that meet your criteria you can request that your human resources (HR) department or plan administrator add values-aligned options to the menu. More employers are responding to these requests.

If you're starting from scratch

This means that you don’t have to untangle existing investments and you can start out working with a values-aligned advisor to build a portfolio from the ground up based on your priorities.

The Bottom Line: Your Money Has a Voice

Every dollar you invest is a vote for the kind of economy you want to live in. Most people cast that vote without knowing it are investing in companies they'd never consciously choose to support, and missing the opportunity to put their money behind the businesses and practices they actually believe in.

Understanding what your investments are really supporting is the first step. It doesn't require a finance degree, a new brokerage account, or a major overhaul of your financial plan. This step requires asking a few questions and being willing to look at the answers.

At Nia, we understand that the transition to a more just, sustainable, and inclusive economy is powered by where investors put their money. The Nia Impact Solutions Fund (NIAGX) was built for investors seeking financial returns who are ready to make that transition. Nia is for those who want a fund that does more than just screen out harmful companies, one that actively uses shareholder power to push for  better policies and practices.

If you're curious about what it looks like to truly align your investments with your values, we'd love to show you.

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Important Disclosures

Nia Impact Solutions Fund is distributed by Ultimus Fund Distributor, LLC (Member FINRA) Nia Impact Capital and Ultimus Fund Distributors, LLC are separate and unaffiliated. 

We highly encourage investors to carefully consider the investment objectives, risks, and charges and expenses of the fund before investing. The prospectus contains this and other information about the fund, and we strongly recommend reading carefully before investing. Investors may obtain a copy of the prospectus by calling (833) 571-2833.

ADDITIONAL IMPORTANT INFORMATION:

As with any mutual fund investment, there is a risk that you could lose money by investing in the Fund. The success of the Fund’s investment strategy depends largely upon the Adviser’s skill in selecting securities for purchase and sale by the Fund and there is no assurance that the Fund will achieve its investment objective.

The Fund’s incorporation of ESG considerations in its investment process may cause it to make different investments than funds that have a similar investment universe and/or investment style and that do not incorporate such considerations in their strategy or investment processes.

Under certain economic conditions, this could cause the Fund’s investment performance to be worse or better than similar funds that do not incorporate such considerations in their investment strategies or processes. In applying ESG criteria to its investment decisions, the Fund may forgo higher-yielding investments that it would invest in absent the application of its ESG investing criteria. 

Control #: 20260513-5470254