Finding Success with Gender Diversity ETFs
Introduction
Investing in gender diversity has become an increasingly popular strategy among socially conscious investors. One ETF that offers exposure to this trend is SHE, which focuses on 241 U.S. large-cap companies committed to gender diversity. With an expense ratio of 0.20% and $260 million in assets under management, SHE seems like a promising investment option.
The Initial Setback
Despite its strong foundation, SHE faced challenges early on due to an unusual screen unrelated to gender diversity. This led to underperformance compared to widely used ETFs like SPY, leaving many investors disappointed. The initial setback tarnished SHE’s reputation and raised doubts about its potential for long-term success.
A Change in Direction
Fortunately, SHE took decisive action in December 2022 to realign its strategy and focus on delivering returns more in line with industry benchmarks like SPY. This shift in direction has been well-received by the market, with SHE now showing signs of recovery and potential for growth.
Comparative Advantage
When compared to other gender diversity ETFs like WOMN, SHE stands out as a more attractive option for investors seeking a balanced approach to both gender diversity and financial performance. Its renewed focus and improved results make it a compelling choice for those looking to align their investment strategy with their values.
How Does This Affect Me?
As an individual investor, the success of SHE can have a direct impact on the performance of your investment portfolio. By choosing to invest in gender diversity ETFs like SHE, you are not only supporting companies committed to gender equality but also positioning yourself for potential financial growth.
How Does This Affect the World?
On a broader scale, the success of gender diversity ETFs like SHE can have a ripple effect in promoting greater gender equality and diversity within corporate leadership. By channeling investments towards companies that prioritize gender diversity, investors can drive positive change in the business world and help create a more inclusive and equitable society.
Conclusion
In conclusion, the evolution of gender diversity ETFs like SHE underscores the importance of aligning values with investment choices. By staying informed and actively supporting companies that promote gender equality, investors can not only drive financial returns but also contribute to a more sustainable and equitable future for all.
