With just a few weeks left in 2016, it is fair and accurate to say that the SPDR Gender Diversity Index ETF (NYSEArca: SHE) is easily one of the most successful new exchange traded funds to come to market this year.
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.
To be sure, SHE is a well-timed idea, having debuted at a time when more and more investors, including institutions, are embracing ESG principles.
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.