eToro launches FemaleLeadership portfolio, offering investors exposure to the benefits of boardroom diversity

Deniza Cristian 02/03/2022 | 14:33

eToro, the social investing network, launched today its new FemaleLeadership Smart Portfolio, offering investors long-term exposure to companies already exhibiting strong gender-equality credentials and awareness.  

 

Research has shown that increasing the proportion of women in leadership positions has a positive impact on a firm’s profitability and also tends to enhance factors such as mentorship, collaboration, employee well-being, as well as diversity and inclusion initiatives.[1] 

eToro’s Deputy CEO and Global Chief Operating Officer (COO), Dr. Hedva Ber, says: “Female leadership and boardroom diversity have proven advantages, not just for company culture but also for business growth and development. The impact of these factors over the long term is not just a stronger, more resilient business with better processes and fresher thinking, but in turn better results for investors.” 

Despite this, women only fill around 30% of director positions in the S&P 500, and the proportion is drastically lower when it comes to CEOs. As of 2021, only 6% of S&P 500 CEOs were women. Nevertheless, the number of women in executive positions and on boards of directors is rising[4], and eToro’s new FemaleLeadership portfolio has been constructed to capitalize on the advantages this brings to their respective firms and sectors. 

The portfolio is composed of 35 US-listed companies from the existing eToro stocks universe, ranked according to a range of metrics including gender diversity, analyst consensus ratings, stock liquidity, and market capitalization. In order to qualify, at least 40% of both the company’s executives and Board of Directors must be women.  

Dr. Ber adds: “To identify the best-performing stocks of tomorrow, investors must evaluate the processes and cultures that a company is putting in place today and determine who is truly equipped for tomorrow. Diversity of thought, skills and experience are the hallmarks of a business that is willing to evolve, to embrace new ideas and to react creatively to future challenges. All these characteristics have proven significance for long-term success.  

“Gender equality is just one aspect of diversity, yet it is a crucial area where a great deal of progress needs to be made. That progress won’t necessarily be steady or obvious, and for people who don’t have the time to scrutinize the ongoing developments within each industry, the market may seem overwhelming. With a ready-made, diversified portfolio of companies, we will be doing the heavy lifting and enabling our customers to engage with this progress in a simple and responsible way.”  

The initial allocation of eToro’s new FemaleLeadership portfolio is weighted more heavily towards the consumer and communications sectors, with a particular focus on retail and internet companies, as per the ranking model mentioned above. The composition includes familiar brands whose leadership teams have made important progress on the road to gender equality, including Disney, GAP, Uber, Paramount Global and Hewlett-Packard. The full allocation can be found here 

BR Magazine | Latest Issue

Download PDF or read online: November 2022 Issue | Business Review Magazine

The November 2022 issue of Business Review Magazine is now available in digital format, featuring the main cover story titled “Samsung Remains Top Consumer Tech Provider on Romanian Market.” Read
Deniza Cristian | 29/11/2022 | 10:17

    You will receive a download link for the latest issue of Business Review Magazine in PDF format, based on the completion of the form below.

    I agree with the Privacy policy of business-review.eu
    I agree with the storage and handling of my data by business-review.eu
    Advertisement Advertisement
    Close ×

    We use cookies for keeping our website reliable and secure, personalising content and ads, providing social media features and to analyse how our website is used.

    Accept & continue