Alternative Investments/ESG: Hypatia Announces New ETF Focusing On Companies Led By Women
This is an opportunity for investors to diversify their portfolio from a gender perspective.
Hypatia Capital Management LLC has launched an ETF that invests in women-led, publicly traded companies. The Hypatia Women CEO ETF (NYSE: WCEO) will seek out companies led by a female CEO or Board Chair. The firm is an asset management group focused on female CEOs and balanced management teams, with a CEO-level female executive network that includes over 1000 business leaders. (CISION PR NEWSWIRE)
Hypatia Women CEO ETF (NYSE: WCEO)
The expense ratio of the new fund is 0.85%.
The ETF will invest at least 80% of its net assets (including borrowings for investment purposes) in exchange-traded equity securities of U.S. companies that are led by a female Chief Executive Officer. The Fund expects to be primarily invested in components of the Hypatia Women CEO Index. The Index tracks the performance of exchange-traded equity securities of U.S. companies that have market capitalizations of at least $500 million and are led by a female Chief Executive Officer. The Fund may also invest in exchange-traded equity securities of other U.S. companies of any market capitalization that are led by a female Chief Executive Officer. In addition, the Fund may invest up to 20% of its total assets in exchange-traded equity securities of U.S. companies with an Executive Chairperson or a Chairperson who is female.
As of January 10, 2023, the ETF’s top holdings were as follows:
Investment philosophy of Hypatia
The ETF’s investment philosophy is that excess returns can be generated by investing in companies led by women because, given the documented structural barriers women face in advancement in corporate America, a woman that reaches the Chief Executive Officer (or equivalent) position must possess extraordinary leadership characteristics to compensate for those additional barriers to entry.
“We believe investors are increasingly interested in the research that highlights the performance of female leadership. We are excited to launch the Hypatia Women CEO ETF to offer investors the chance to potentially diversify their portfolio from a gender perspective, invest their values, and use their investment dollars to create impact,” said Patricia Lizarraga, founder and managing partner.
Related Story: Hypatia, A New Fund Manager, Files For ETF On Women CEOs
Image by Khusen Rustamov from Pixabay
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