The massacre in Las Vegas is just the latest tragedy that has some investors looking to exit their investments in the firearms industry. But many investors don't even know that they have money in the firearms industry, because that's just one piece of their 401(k). Companies like American Outdoor Brands Corporation (AOBC) and its subsidiary Smith & Wesson; Sturm, Ruger and Company (RGR) ; along with the Olin Corporation (OLN) are popular with many fund managers. For example, if Vanguard is your 401(k) custodian, be aware: it owns nearly 15% of Sturm, Ruger. The hard truth is gun stocks do well, especially in the wake of gun violence. That's because of fear that there will be a crack down and new regulation. Enthusiasts buy up arms with gusto. As a result, stock price gains can range from 6% to 17% after a tragedy. Las Vegas is no exception with firearm and defense tech stocks spiking on Monday, with American Outdoor Brands and Sturm, Ruger & Company closing up more than 3% each. Divestment campaigns like Goodbye Gun Stocks and the Campaign to Unload have urged investment banks and brokerages to yank funds from gun and ammunition manufacturers. For those thinking about ethical and socially responsible investing, Goodbye Gun Stocks can help investors see if they have money in guns and find high-performing alternatives.
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