What Issues Do Values-Driven Investors Care About?
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What Issues Do Values-Driven Investors Care About?

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What Issues Do Values-Driven Investors Care About?

The Briefing

  • Values-driven investing has become popular across a variety of age groups
  • However, different age groups value different issues over others
  • Young investors (age 25-39) are most concerned about climate change and plastic in the ocean
  • In contrast, investors aged 55+ care more about data fraud and gun control

What Issues Do Values-Driven Investors Care About?

Contrary to popular belief, environmental, social, and governance (ESG) investing isn’t just for the younger generation.

In fact, more than 80% of investors aged 40+ are interested in aligning their investment portfolios with their personal values, which is only around 10 percentage points less than the younger demographic (aged 25-39).

However, while overall intent to invest in the greater good is consistent across the board, the top concerns among investors vary, depending on age.

Here’s a look at the top issues that investors want addressed in their portfolios, by age group:

Age Group
Issues Investors Want Included in Their Portfolio25-39 years old40-54 years old55+ years old
Global warming/ climate change34%34%27%
Impact of plastic on the oceans21%30%26%
Sustainability24%23%17%
Data fraud or theft14%20%29%
Gun control13%20%22%

Young Investors Care More About Long-Term Issues

As the table above shows, the top concern among investors aged 25-39 is climate change, followed by sustainability in general.

This makes sense, considering that younger investors will most likely be around to deal with the consequences of long-term issues like climate change and plastic pollution.

In contrast, investors with a shorter time horizon to retirement (aged 55+) are more concerned with immediate threats like gun control and data fraud.

How To Execute on Values-Driven Investments

It’s clear that investors of all ages are interested in values-driven investing—but how can investors take action to build a portfolio that reflects their beliefs?

There are two approaches to building a sustainable investment portfolio:

  • Exclusionary investing
    Also known as negative screening, or divesting. This is when investors screen out industries that go against their values, such as tobacco, gambling, or fossil fuels.
  • Inclusionary investing
    Also knowns as positive screening. This is when investors formally consider ESG factors in their research process under the assumption that companies with strong sustainability practices can outperform their industry peers over time.

While exclusionary investing is the more common approach, research on the effectiveness of inclusionary investing has been overwhelmingly positive.

» For a more in-depth look on the top of values driven investing, read our full article The Rise of the Values-Driven Investor

Where does this data come from?

Source: New York Life, 2019.
Notes: Data was derived from a 2019 study conducted by New York Life Investments,
in partnership with RTi Research.

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Super-Sized Bets for Football’s Big Game (2013-2022)

Expanding legalization has driven an increase in bets on football’s big game, with wagers more than doubling from 2021 to 2022. (Sponsored Content)

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Dollar value of bets for football's big game shown over the last ten years using footballs. The football is much bigger in 2022 to indicate that bets doubled from 2021 to 2022.

The Briefing

  • Sports betting became legal outside Nevada when the federal ban was lifted in 2018.
  • Legalization contributed to betting growth, with wagers on football’s big game increasing ten-fold over the last decade.

Super-Sized Bets for Football’s Big Game

With 99 million viewers in 2022, “more Americans tune in to the Super Bowl than any other television broadcast.” Its large viewership, combined with expanding legislation, has led to ballooning wagers.

In this graphic sponsored by Roundhill Investments, we show how these bets have grown over the last 10 years.

Annual Legal Bets on the Big Game

From 2013 through 2018, sports betting was only legal in Nevada and year-over-year growth was low. However, when the federal sports betting ban was lifted in May 2018, more states started allowing bets.

By 2022, 33 states plus Washington, DC were legally able to bet on the game. Wagers climbed quickly as a result.

YearTotal BetsAnnual Growth
2013$99M5%
2014$119M21%
2015$116M-3%
2016$133M14%
2017$138M4%
2018$159M15%
2019$191M20%
2020$280M47%
2021$486M73%
2022$1.1B119%

Data only for states that report bets on football’s big game, see graphic for full list of states included in 2022.

Impressively, legal bets surpassed the $1 billion mark in 2022. Growth was primarily driven by New York State legalizing online sports betting, with the state contributing nearly $500 million to the total.

Since the New York State Gaming Commission does not report event-specific totals, we have estimated this amount based on sports bets made the week leading up to and including the date of the big game.

Investment Exposure to an Emerging Industry

Due to legalization, bets on football’s big game have grown 10 times larger over the last decade. A further shift away from bookies and toward legal operators appears to be likely. In September 2022, 89% of Americans said it was important to bet with a legal operator this NFL season, up from 76% in February 2022.

For legal operators, this could translate into revenue opportunities. Companies that take legal bets reported more than $62 million in revenue from the big game alone in 2022, a 37% jump from the prior year.

Looking for exposure to the growing sports betting industry? Explore Roundhill’s sports betting ETF, $BETZ.

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