eToro brings diversity to the portfolio. Studies have shown that a higher proportion of women in managerial positions has a positive effect on a company’s profitability. It also promotes factors such as mentoring, collaboration, employee wellness, and diversity and inclusion initiatives.
Female leadership and diversity in leadership have been shown to have benefits. Not only because of the corporate culture, but also because of the growth and development of the company. In the long run, these factors don’t just translate into a stronger, more resilient company with better processes and fresher thinking. They also ensure better results for investors.
Dr Hedva Ber, CEO and Global COO of eToro
And yet, there is still room for improvement when it comes to diversity. Women hold only about 30 percent of senior positions in the S&P 500. The proportion is even lower for CEOs. In 2021, only 6 percent of S&P 500 CEOs were women.
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Diversity can still improve
However, the number of women in management positions and on boards is increasing. eToro created the new Female Leadership portfolio to reap the benefits for the companies and sectors involved.
The portfolio consists of 35 US-listed companies from eToro’s existing stock universe. Analysts have ranked them according to a number of metrics, including gender diversity, analyst ratings, stock liquidity, and market capitalization. To qualify, at least 40 percent of the company’s executives and board of directors must be women.
To identify the best stocks of tomorrow, investors must assess the processes and culture a company is implementing today and determine who is ready for tomorrow. Diversity of thought, skills and experience are the hallmarks of a company that is ready to evolve, embrace new ideas and respond creatively to future challenges.
All of these qualities have been shown to be important for long-term success. Gender equality is only one aspect of diversity. However, it is a crucial area where we still have a lot of progress to make. This progression is not necessarily continuous or obvious. The market can seem overwhelming, especially for people who don’t have time to check the market. With a diversified and prepared portfolio of companies, we will do the heavy lifting and allow our clients to participate in this progress in an easy and responsible way.
Dr Hedva Ber
The eToro portfolio as an opportunity
Etoro aligns the initial allocation of the new Women’s Leadership portfolio more towards the consumer and communications sector. Particular attention is paid to retail and Internet companies. The membership includes recognized brands whose leadership teams have made significant strides toward gender equality.
These include Disney, GAP, Uber, Paramount Global, and Hewlett-Packard. You can find the full breakdown here. The launch of this wallet is part of eToro’s broader initiative to support women in business, finance and investing.
eToro recently launched InvestWithHer, an online community dedicated to encouraging more women to consider investing.
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