Gender Diversity Works For This ETF

Many investors, including some professionals and advisors, look to invest with a moral compass. Issuers of exchange traded funds (ETFs) have been meeting that demand with an increasing number of exchange traded funds that address various issues.

Time will ultimately tell how successful these ETFs end up being, but investors do not need to wait to gauge the success of the SPDR Gender Diversity Index ETF (NYSEArca: SHE). SHE debuted in March and is already home to more than $280 million in assets under management, easily making it one of the most successful new ETFs to come to market this year.

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SHE seeks to track the performance of the SSGA Gender Diversity Index, which comprises listed U.S. large capitalization companies with the highest levels within their sectors of gender diversity on their boards of directors and in their senior leadership.

According to a 2015 MSCI study that explored global trends in gender diversity on corporate boards between December 2009 and August 2015, companies with at least three female board members outperformed others in overall return on equity by more than 36 percent.