Lyxor launches Europe’s first gender equality ETF
Lyxor Asset Management has launched what it believes is Europe’s first ETF to focus on companies leading the field in gender equality, via its Luxembourg-based SICAV structure.
The Lyxor Gender Equality ETF (ELLE FP) has been developed in partnership with index provider Solactive, and is backed by analytics powered by gender equality foundation Equileap.
The ETF is linked to the Equileap Global Gender Equality Index, an index of 150 stocks based on Equileap’s global database covering more than 3,000 companies in 23 developed market countries. Each company has a market capitalisation of at least US$2bn and an average daily value traded of at least US$5m.
To refine the selection to just 150 companies, the index selects the highest ranked firms according to Equileap’s Gender Scorecard, a 19-criteria methodology inspired by the UN Women’s Empowerment Principles, the company said. Key criteria for selection are gender balance, equal compensation, work-life balance, policies promoting gender equality, transparency, and accountability. Index holdings are equally weighted and re-balanced annually.
Lyxor’s deputy head of ETFs and indexing, Clarisse Djabbari 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 sustainable development goals; gender, water, new energy and climate change through our Green Bond ETF.”
The new ETF is a Luxembourg SICAV which uses physical replication and is available on Euronext Paris with a total expense ratio of 0.35%.