What Are the Best Stocks to Buy During Pride Month?

June is Pride Month and many corporations take extra time to focus on initiatives boosting equality and awareness for LGBTQ people. Socially responsible investing is becoming more important to individuals, so investors might want to buy stocks of companies that support organizations that impact the LGBTQ community.

Here are some of the best Pride Month stocks to buy. Most of the companies included here stand out for nondiscrimination policies and for their financial contributions to LGBTQ organizations.

There's a new ETF devoted to shares of the top 100 equality-driven U.S. companies. GoBankingRates reported that the LGBTQ + ESG100 ETF just came to market in May 2021.

Companies are rated by their initiatives to promote equality in the workplace and are screened for ESG compliance. ESG refers to "environmental, social, and corporate governance," also given the term “socially responsible investing.”

Stocks must score a 100 and be included in “Best Place to Work for LGBTQ Equality” on the Human Rights campaign list. They also have to pass tests ruling out pornography, tobacco, guns, or weapons of mass destruction. The stocks have to meet guidelines for liquidity and fundamentals.

These are the top 10 stocks listed on the LGBTQ + EST100 ETF:

• Tesla (TSLA)
• Amazon (AMZN) 
• Apple (AAPL)
• Microsoft (MSFT)
• Marriott (MAR)
• Estee Lauder (EL)
• Facebook (FB)
• Starbucks (SBUX)
• PayPal (PYPL)
• Visa (V)

Apple is one of the top stocks on the LGBTQ + ESG100 ETF. Apple CEO Tim Cook has been an outspoken advocate for gay rights and marriage equality. In 2014, he was also the first leader of a Fortune 500 company to come out as gay.

For at least 16 consecutive years, JPMorgan Chase & Co. earned a perfect score on the Human Rights Campaign’s Corporate Equality Index (CEI). It has a longtime history of support for LGBTQ+ people. In January 2021, the company announced a $5 million donation to 5 non-profits ($1 million apiece spread over four years) benefiting LGBTQ+ people.

IBM has received perfect 100 scores on the CEI for many years. Vice President and Managing Direct Claudia Brind-Woody, said of IBM, “We at this corporation lead the way and influence businesses.” One of the initiatives at IBM is reverse mentoring, in which LGBT+ employees mentor higher-up executives and help create more allies.

The CEO of Trulieve Cannabis Corp., Kim Rivers, said in a press release, “We are proud of our efforts to create a safe, welcoming, and supportive environment for members of the LGBTQ+ community and beyond.” In 2020, the company donated over $50,000 to support LGBTQ+ communities through Pride Month product sales.

Trulieve announced new Pride Month initiatives on June 9. In Massachusetts, it earmarked a percentage of sales at a new dispensary for the advocacy group MassEquality. In Trulieve's 83 Florida dispensaries, a portion of proceeds in June will benefit groups that support LGBTQ+ individuals and communities.

For information about many more companies that actively support LGBTQ+ rights, the Corporate Equality Index provides the most recent year’s ratings.