Companies with women in top positions have performed 20 percent better in recent years. Here is the ETF that only invests in women-led companies – and it seems to be soaring this year as well.
The Hypatia Women CEO ETF is a ETF that only invests in companies led by women. The fund was recently created, but the companies included in the portfolio have performed 20 percent better than expected over the past five years.
The reason, according to Hypatia, is that they are led by women.
And for the same reason, their index is expected to continue to rise – by 20 percent just this year, according to Hypatia Women.
This is reported by the news site CNBC.
Named after the philosopher
The ETF is named after the Egyptian female philosopher and mathematician Hypatia of Alexandria, who lived a few hundred years before Christ.
The ETF is based on the motto that the female factor means a good investment. This is explained by Patricia Lizarraga, who is the head of the investment firm Hypatia Capital.
Companies led by women
She has a background in investment and said that her experience with female leaders in the finance world has shown her that female leadership often goes hand in hand with business acumen and leadership skills.
One reason may be that women competing for top jobs often have to overcompensate to get the job, which means that those who actually reach leadership roles in companies are often very competent.
Isolating the female factor “We have created an algorithm that isolates the female factor in the best possible way, according to us,” Lizarraga told the news site.
“We look back five years at the companies included in the index.”