There is evidence that better gender diversity leads to improved performance. According to a 2015 MSCI1 study that explored global trends in gender diversity on corporate between December 2009 and August 2015, companies with at least three female board members, or companies with a higher percentage of women on the board than its country’s average, performed better as measured by return on equity (10.1% per year versus 7.4% for all other companies). 2
Gender diversity indexes, which are composed from companies that meet such diversity criteria, are a recent innovation.
1 The methodology used in MSCI’s study is different than that of the Index, and as such, the results of the study should not be viewed as indicative of the future performance of the Index. This information should not be considered a recommendation to buy or sell any security shown. It is not know whether the securities shown will be profitable in the future.
2 Past performance is not a reliable indicator of future performance. It is not possible to invest directly in an index. Index returns reflect capital gains and losses, income, and the reinvestment of dividends. Index returns are unmanaged and do not reflect the deduction of any fees or expenses.