Markets Magazine
A Gender-Focused Strategy Beat the S&P 500 by 141 Percent
Investing in companies with the most women in board, management and workforce roles more than doubled the benchmark's return over 10 years.
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Women occupy only 20 percent of board seats at companies in the S&P 500. Some studies suggest that having more women in leadership roles at corporations can have a positive impact on performance metrics and share price. So can you profit from a strategy that focuses on gender diversity? A simple backtest suggests the answer is a resounding yes.
The strategy is based on screening for the companies that are in the top half of the S&P 500 in terms of women’s representation on their boards, management, and workforce.