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Female leadership stocks: Are there financial benefits to boardroom diversity?

Updated: Apr 20

Gender equality awareness is stronger than ever — and, as it turns out, important to look for when investing.



Research has shown that the more women in leadership positions a company has, the higher the firm’s profitability. Women’s presence in corporate leadership also tends to enhance factors such as mentorship, collaboration, employee well-being, as well as diversity and inclusion initiatives.


Invest in Female-led Companies >>


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A 2019 study found that public companies with women at the helm — serving either as Chief Executive Officer or Chief Financial Officer — showed higher profits and stock price performance than those of companies with men in top positions. For investors, this means that it can be worthwhile to factor female leadership into their investment analysis.


Leveraging the advantages of female leadership

“Female leadership and boardroom diversity have proven advantages, not just for company culture, but also for business growth and development,” says eToro’s Deputy CEO and Global Chief Operating Officer (COO), Dr. Hedva Ber. “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.”


That’s great to know — but how can investors capitalise on this knowledge on a practical level, while at the same time, supporting the trend of more women in high-level positions? eToro has the solution.


“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,” adds Ber. “For people who don’t have the time to scrutinise the ongoing developments within each industry, the market may seem overwhelming. With a ready-made, diversified portfolio of companies, [eToro] will be doing the heavy lifting, enabling our customers to engage with this progress in a simple and responsible way.”


Introducing the new FemaleLeadership Portfolio

eToro’s Smart Portfolios were designed to offer investors ready-made, fully allocated exposure to various market themes. Bundling together several assets under the same strategy and employing a passive investment approach, eToro Smart Portfolios are long-term investment solutions that offer diversified exposure with no management fees.


All that adds up to a convenient, sensible and done-for-you investment strategy which you can access with just a few clicks.


FemaleLeadership is the newest offering to take the eToro Smart Portfolio approach, helping investors to capitalise on, as well as support, corporate female leadership. The portfolio invests in companies with a significant number of women in executive and directorial positions, leading the way not only in equality and diversity, but also aiming for impressive growth.


Invest in FemaleLeadership Now

68% of retail investor accounts lose money when trading CFDs with this provider .You should consider whether you can afford to take the high risk of losing your money.

Copy trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.


Diversity in business… and in your investments

The foremost criterion for a stock to be included in the FemaleLeadership Smart Portfolio is that at least 40% of both the company executives as well as their board of directors are female. Represented in the portfolio are familiar brands whose leadership teams have made important progress on the road to gender equality — for example, Disney, which has 50% female executives and 40% women on their board; Bath & Body Works, which has 40% female executives and 58.3% women on their board; and Gap, which has 55.6% female executives and 41.7% women on their board, as well as female CEO Sonia Syngal.


Since female-led companies create products and services that run the gamut of economic sectors and touch every facet of our day-to-day lives, eToro’s FemaleLeadership Smart Portfolio is naturally quite diversified, offering investors exposure to leading companies from a variety of sectors and industries.


The launch of the FemaleLeadership Smart Portfolio is part of eToro’s wider initiative to support women in business, finance and investing. eToro recently launched InvestWithHer, an online community designed to encourage more women to consider investing — check that out here.


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