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State Street is offering an ETF investment strategy centered around Corporate gender diversity

Exchange-Traded Funds or ETF’s are a good way to trade a bundle of corporations at one time.  ETFs act like stocks but have less volatility as they represent a combined group of corporations (similar to the S&P).

Investment funds invest in ETFs that match their investment strategy and represent their overall profit tactics.  Although many ETFs are focusing on “smart beta” strategies, one of the Top 10 most successful ETF launched in 2016 is the State Street Corp  SPDR Gender Diversity ETF (or SHE for short).  "With $284 million in assets since its February creation, the fund tracks companies with greater levels of gender diversity in senior leadership roles. It’s second only to the Wisdom Dynamic Currency Hedged International Equity Fund, which investors have poured $292 million into since its inception in January.“

Although its success is commendable, it must be noted that 97% of the fund is thanks to the the California State Teachers’ Retirement System which is the second largest pension fund in the US.  With that being noted, this practice is far from unusual.  The ETF looks to back the theory of relating gender diversity to profits.  According to State Street Corp, gender diversity can be an investing factor.  The company "cites a MSCI study showing a 36.4 percent higher return on equity in companies with women at the leadership level.”

 So how is the fund performing?  "So far, the fund has acted similarly to the S&P 500. Since its launch in February, it has gained 9.5 percent, compared to the gauge’s 11.4 percent. Among it’s top holdings are blue-chip companies Pfizer Inc., PepsiCo Inc. and Amgen Inc.“

Bloomberg

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