“The fund’s goal is to achieve market-rate returns by investing in US companies that recognize the value of gender diversity and do their part to ensure that women are well-represented on their boards of directors and in management. As of May, about 150 companies were included in the ETF, and returns have closely tracked the S&P 500 index,” according to a Seeking Alpha analysis of SHE.
In the past two years, there have been significant developments in Environmental, Social and Governance (ESG) index-based investing. S&P Global Market Intelligence thinks that a more modest global economic expectation, a focus on climate changes and the gender pay-gap disparity and a new generation of investors comfortable with alternatively-weighted passive strategies plays a role.
SEE MORE: Inside the new Gender Equality ETF
“The SHE ETF is hardly the first to embrace impact investing, but its growth has been phenomenal. Since launching in May, the fund has attracted $270 million in assets – more than any other ETF that debuted in 2016, according to Bloomberg. In a first for a State Street ETF, SHE also has a charitable component. The charitable fund, SHE Gives Back, donates money to organizations that counter sexism directed at girls in early childhood who want to become leaders,” according to Seeking Alpha.
