Consumer trust isn’t something to be taken for granted, but reports from the UK, US and here at home are all pointing towards an uplift in trust levels around financial advice, which can only be a welcome development.
There are significant tailwinds behind the financial advice industry at the moment, but some major obstacles are still preventing advice practices from taking advantage of surging demand according to a new study from CFS.
eToro launches Female Leadership portfolio
“During the Covid-19 crisis, we’ve heard anecdotally about women leaders doing a better job and new research backs that up.” According to Harvard Business Review, a study found that outcomes related to Covid-19, including number of cases and deaths, were systematically better in countries led by women. The study went on to say, “women were rated more positively on 13 of the 19 competencies in our assessment that comprise overall leadership effectiveness.”
If this report is any guide, then eToro could be on the money after it launched a Female Leadership Smart portfolio that offers investors exposure to companies already exhibiting strong gender-equality credentials and awareness.
eToro’s deputy CEO and global chief operating officer (COO), Dr. Hedva Ber, agrees, saying: “Female leadership and boardroom diversity have proven advantages, not just for company culture but also for business growth and development. The impact of these factors over the long term is not just a stronger, more resilient business with better processes and fresher thinking, but in turn, better results for investors.”
eToro has also found that studies have shown that the greater portion of women in leadership positions in a company drives higher profits and adds positive influences such as mentorship, collaboration, employee well-being, as well as diversity and inclusion initiatives.
However, in 2021, only 6 per cent of companies in the S&P 500 index had female CEOs. But eToro says this number is on the rise. Last year, UBS launched a similar type of fund, a portfolio that invested solely in hedge funds led by women in an effort to find hidden talent in a mainly male-dominated sector.
eToro says the “portfolio is composed of 35 US-listed companies from the existing eToro stocks universe, ranked according to a range of metrics including gender diversity, analyst consensus ratings, stock liquidity, and market capitalisation. In order to qualify, at least 40 per cent of both the company’s executives and Board of Directors must be women.”
Dr. Ber adds, “To identify the best-performing stocks of tomorrow, investors must evaluate the processes and cultures that a company is putting in place today and determine who is truly equipped for tomorrow. Diversity of thought, skills and experience are the hallmarks of a business that is willing to evolve, to embrace new ideas and to react creatively to future challenges. All these characteristics have proven significance for long-term success.”
eToro will first allocate funds towards the consumer and communications sectors, with a particular focus on retail and internet companies. Here is what the portfolio’s top 15 stocks look like:
eToro recently launched InvestWithHer, an online community designed to encourage more women to consider investing.
