eToro launches the FemaleLeadership Thematic Portfolio

eToro, a global investment platform, launched the new FemaleLeadership smart walletoffering investors long-term exposure to companies that already show strong credentials and gender awareness.

Research has shown that there is an increase in the percentage of women in management positions has a positive effect on the company's profitabilityand tends to enhance factors such as mentoring, collaboration, employee well-being, as well as diversity and inclusion initiatives.

EToro's Deputy CEO and COO, Dr. Hedva Ber, comments:

“Female leadership and the diversity of board members have proven advantages not only for the company's culture, but also for business growth and development. The impact of these factors over the long term is not only a stronger, more resilient business with better processes and fresher thinking, but also better results for investors. ”

Women are in the minority but the trend is changing

Still, women take up only about 30 percent. executive positions in the S&P 500 indexand that percentage is drastically lower for CEOs. In 2021, only 6 percent. of the S&P 500 CEOs were women. Nevertheless, the number of women in leadership positions and boards of directors is growing and eToro's new portfolio of female leaders has been structured to harness the benefits it brings to their businesses and sectors.

The portfolio consists of 35 listed companies in the United States available on eToro, ranked by a range of metrics including gender diversity, analyst consensus ratings, equity liquidity, and market capitalization. To qualify, at least 40 percent. executives and board members had to be women. 

READ: What are eToro investment portfolios

Dr. Ber adds:

“To identify tomorrow's best stocks, investors need to evaluate the processes and culture the company is implementing today and determine who is truly prepared for tomorrow. A variety of thoughts, skills and experiences are the hallmarks of a company that wants to grow, embrace new ideas and react creatively to future challenges. All of these features are proven to be of importance to long-term success.

 Gender equality is only one aspect of diversity, but it is a key area where significant progress needs to be made. This progress will not necessarily be steady or obvious, and for those who do not have time to look at what is changing in every industry, the market can seem overwhelming. With a ready-made, diversified portfolio of companies, we enable our clients to engage in this progress in a simple and responsible manner ”.

The initial allocation of eToro's new female wallet of female leaders is weighted more towards the consumer and communication sectors, with a focus on retail and internet companies, in line with the ranking model mentioned above. The portfolio includes well-known brands whose leadership teams have made significant strides towards gender equality, including Disney, GAP, Uber, Paramount Global and Hewlett-Packard.

The introduction of this wallet is part of a wider eToro initiative to support women in business, finance and investment. eToro recently launched InvestWithHer, an online community aimed at encouraging more women to invest.

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