Paris-based Lyxor has launched what it claims is Europe’s first gender-equality exchange-traded fund (ETF) which will focus investment into companies that promote gender-equality policies.
The Luxembourg-domiciled Sicav fund, which has a total expense ratio of 0.35%, has been developed in co-operation with Equileap, an organisation that promotes gender-equality in the workplace, and index provider Solactive.
The fund’s reference index will be Equileap’s Global Gender-Equality Index. To refine stock selection to 150 companies, the ETF will also use Equileap’s gender scorecard: a 19-criteria methodology based around the United Nations’ women’s empowerment principles.
Companies invested in will have a market capitalisation of at least $2 billion (€1.73 billion) and an average daily trade of at least $5 million.
Key criteria for selection are gender balance, equal compensation, work-life balance, policies promoting gender-equality, transparency and accountability.
Clarisse Djabbari, deputy head of Lyxor ETFs & Indexing, said: “This ETF marks an important step in our progress towards a complete range of environmental, social and governance-based investment products.
“We are the only provider in Europe to offer ETFs on four of the UN’s sustainable development goals: gender, water, new energy and climate change through our green bond ETF”.
The Lyxor Global Gender Equality (DR) Ucits ETF uses physical replication and is available on Euronext Paris.
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