Fidelity Investments launched a new actively managed mutual fund that seeks to identify high-performing companies that prioritize and advance women’s leadership and development.
The Fidelity Women’s Leadership Fund (FWOMX), which has a net expense ratio of 1%, is available with both retail and advisor share classes, with no investment minimums, and is managed by Nicole Connolly, a 21-year industry veteran.
“I’m looking for companies that I believe are committed to female leadership and development, that can grow earnings more than the market and that have resilient businesses models with a solid competitive position,” Connolly said in a statement. “The focus with the Fidelity Women’s Leadership Fund is to offer an investment product that seeks returns with a purpose.”
To be considered, a company must have a woman as a member of the senior management team, or; one-third women on its board of directors, or; specific gender diversity initiatives for hiring, retention and promotion of women.
Fidelity’s research found that companies with women in leadership positions and initiatives promoting gender diversity generally outperformed the market over the long term.
“Our active research and experience suggests this is an investment universe ripe for good stock picking,” Connolly said. “The research also found that companies with a commitment to gender diversity can have lower earnings volatility and higher return on equity.”
Sofi Adds To Its ETF Lineup With Gig Economy and SoFi 50 ETFs
SoFi announced the availability of its two newest exchange-traded funds: the SoFi Gig Economy ETF (GIGE) and the SoFi 50 ETF (SFYF).
The SoFi Gig Economy ETF is an actively managed fund that is designed to seek long-term capital appreciation by capturing exposure to the economic shift toward gig-oriented companies. The “gig economy” refers to a group of companies that embrace and support the workforce in which employment is based around short-term engagements that allow for flexibility and personal freedom and temporary contracts.
The fund is structured so that most companies that IPO can be included in the portfolio within 31 days of their IPO, as opposed to traditional passive funds that must likely wait 60 to 90 days to include a new IPO.
The SoFi 50 ETF tracks the performance, before fees and expenses, of the Solactive SoFi US 50 Growth Index, by capturing the performance of 50 of the 1,000 largest publicly-traded U.S. companies that have the highest growth score based on three key signals: top-line revenue growth, net income growth, and forward-looking consensus estimates of net income growth. The index is equally weighted.
GIGE will be listed on Nasdaq with an expense ratio of 59 basis points. SFYF will be listed on the NYSE Arca and has an expense ratio of 29 basis points.
Quadratic Capital Launches Quadratic Interest Rate Volatility and Inflation Hedge ETF
Quadratic Capital Management launched its first exchange-traded fund, the Quadradic Interest Rate Volatility and Inflation Hedge ETF (IVOL).