As we celebrate International Women’s Day and Women’s History Month in March, Morningstar Indexes revisits the relationship between company performance, stock price and gender diversity standards through the lens of its gender diversity indexes.
The Morningstar Developed Markets Gender Diversity Index was designed by Morningstar Indexes in collaboration with Equileap to emphasize companies in developed global markets which have strong gender diversity policies embedded into their corporate culture and ensure equal opportunities to employees irrespective of gender. The index performed in line with its broad market counterpart, the Morningstar Developed Markets Large-Mid Cap Index, for the three and five-year periods ended March 7th.
Top holdings for the Gender Diversity Index as of February month-end that have helped drive these returns include NVIDIA Corp (2.9% of the index and a 276.8% 1-year return), Meta Platforms (2.5% of the index and a 168.6% 1-year return) and Eli Lilly and Co. (1.2% of the index and a 145.9% 1-year return).
Rob Edwards – Director of Global ESG Product Management, Morningstar Indexes:
“Research has shown that companies committed to strong gender diversity policies and practices with diverse management teams can potentially achieve superior results over time. Our gender diversity indexes enable investors to measure the impact of these policies by tracking the performance of companies exhibiting these characteristics. The indexes can be a great tool for investors seeking to achieve positive social and environment outcomes without sacrificing financial returns.”
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