Back to top

Image: Bigstock

Salute Woman Power With This New Fidelity ETF

Read MoreHide Full Article

Fidelity Investments recently expanded its sustainable investing lineup with five new actively managed Environmental, Social and Governance (ESG) funds – two equity mutual funds, one bond mutual fund and two equity exchange-traded funds (ETFs) – available Jun 17, 2021.

Among the lot, we would like to discuss the one which seeks to invest in high-quality companies that are addressing women’s leadership and development. The name of the ETF is Fidelity Women's Leadership ETF FDWM.

It is an actively managed ETF that invests in companies which prioritize and advance women’s leadership. Its benchmark index is the Russell 3000 TR USD. The gross expense ratio of the fund is 0.59% and the net expense ratio is 0.53%.

How Does It Fit in a Portfolio?

According to many researchers, companies with greater levels of gender diversity on their boards of directors were more profitable than their male-dominant counterparts. Gender diversity usually results in increased productivity, greater innovation, better decision-making as well as higher employee retention and satisfaction. Companies with greater diversity on their boards have also experienced lower volatility in earnings and dividends. All these suggest a new era of women leadership in world economy (read: Invest in Women-Led Companies With These ETFs).

In 2020, women power was thriving than ever before as they climbed to the top spots at the Fortune 500 companies to take over from male predecessors. The number of women running the Fortune 500 companies hit a then-record of 37 in 2020. This is up from 33 in 2019, 24 in 2018 and just two seen 20 years ago.

And the female CEOs on this year’s Fortune 500 breached three all-time records. In 2021, the number of women running businesses on the Fortune 500 is now at an all-time record of 41. And for the first time, two Black women secured a place on the list.

According to many researchers, companies with greater levels of gender diversity on their boards of directors were more profitable than their male-dominant counterparts. Gender diversity usually results in increased productivity, greater innovation, better decision-making as well as higher employee retention and satisfaction.

 Is There Any Competition?

SPDR SSGA Gender Diversity Index ETF SHE, Impact Shares YWCA Women’s Empowerment ETF WOMN and Barclays Women in Leadership ETN WIL are three ETFs that are focused on women leadership and available in the market. These three ETFs charge 20 bps, 75 bps and 45 bps in fees, respectively.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>

Published in