Viewpoint: How to Evaluate Funds that Invest in Women

Wednesday, March 27, 2019

By Debbie Carlson

Investing in mutual funds and exchange-traded funds that promote environmental, social and governance policies allows people to try and align their investments with their values – that includes investing in women.

A growing amount of data show that ESG-focused investments can perform just as well or even better than traditional investments, letting people do good socially and financially. That’s true for funds focusing on environmental and corporate governance factors, in which there are plenty of easy-to-quantify metrics. The data are less robust for funds focusing on improving social outcomes, such as those that purport to highlight women’s issues.

That lack of data hasn’t stopped fund issuers from creating investments geared toward women, as more women invest in stocks, mutual funds and ETFs. In fact, some research shows women are more likely to choose socially responsible investments.

Photo courtesy of sallyjermain.

Source: U.S. News Money (link opens in a new window)

Categories
Investing
Tags
ESG, gender equality, impact investing