The SPDR MSCI USA Gender Diversity ETF (SHE ) officially changed its name and its underlying index to the MSCI USA Gender Diversity Select Index.
Those changes went into effect on December 8, according to FactSet. SHE, which turns seven years old next March, is a pioneer among gender-focused exchange traded funds and is one of the leading funds in this young category, as highlighted by $208.65 million in assets under management, as of December 8.
With the index change, SHE is now home to 281 stocks.
“The MSCI USA Gender Diversity Select Index (the ‘Index’) is designed to represent the performance of those companies that exhibit a commitment towards promoting and maintaining a high level of gender diversity across the different levels within their organization, including their corporate board, executive and senior management, and workforce,” according to MSCI.
SHE’s new index aims to be sector agnostic, but it does evaluate the 11 GICS sectors for groups that score well in terms of elevating women to management roles, high-ranking executive spots, and boards of directors. The index weighs holdings based on a combination of market capitalization and gender diversity scores. Stocks are capped at a weight of 4.5% when the benchmark rebalances.
Today, SHE’s top 10 holdings feature an array of familiar names, including Microsoft (NASDAQ:MSFT), Visa (NYSE:V), Apple (NASDAQ:AAPL), and Chevron (NYSE:CVX). Eight of SHE’s top 10 holdings are members of the Dow Jones Industrial Average, with Accenture (NYSE:ACN) and Facebook parent Meta Platforms (NASDAQ:META) being the exceptions.
“This Index is rebalanced on a quarterly basis to coincide with the regular Index Reviews (Semi-Annual Index Reviews in May and November and Quarterly Index Reviews in February and August) of the MSCI Global Investable Market Indexes. The changes are implemented at the end of February, May, August and November. The pro forma indexes are in general announced nine business days before the effective date,” added MSCI. “Gender Diversity Data and ESG Controversy data for the Quarterly Index Reviews will be taken as of the end of the month preceding the Index Review, i.e., January, April, July and October.”
Technology and healthcare stocks combine for over 42% of SHE’s weight, while financial services and consumer cyclical names combine for over 21%. All 11 GICS sectors are represented in the ETF.
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