Socially Conscious Investing

Socially Conscious Investing can be a feel-good but poor real investment.

Initially, when I saw this week’s word, “she”, I decided I would skip it. It didn’t resonate with me. Tonight, at dinner, I told my wife I was skipping this week, and then jokingly said I would write a post if there was an investment with the ticker symbol “SHE.” As it turns out, there is. I guess I should have known that would be the case.

While I don’t think an investor should invest outside of their worldview, values, conscience, or moral values, the current trends to sell investment products that sound like they focus on a specific social agenda at the expense of results is a bit misguided, at best. The ETF called SHE is one that I could never recommend unless you just have to feel good about the name of the fund. Under the covers it isn’t really all that special. I also have to wonder why the turnover ratio is so high. If the index was focused on large cap funds with a focus on female leadership, turnover should not be more than 25% for year.

A Quick Critique

The reasons I dislike SHE are multiple. In fact, I really struggle to find even one thing that I would call appealing about this fund. If my mom, my wife, my daughter, or my granddaughters bought this ETF I wouldn’t fight it, but I could easily suggest far better alternatives including VOOV and DGRO. The images help explain why SHE is someone I would not invite into our investment portfolio.

Who is SHE?

SPDR Series Trust – SPDR SSGA Gender Diversity Index ETF is an exchange traded fund launched by State Street Global Advisors, Inc. It is managed by SSGA Funds Management, Inc. It invests in public equity markets of the United States. The fund invests in stocks of companies operating across diversified sectors. It invests in growth and value stocks of large-cap companies. It invests in stocks of companies that are deemed socially conscious in their business dealings. It seeks to track the performance of the SSGA Gender Diversity Index, by using representative sampling technique. SPDR Series Trust – SPDR SSGA Gender Diversity Index ETF was formed on March 7, 2016 and is domiciled in the United States.

Five Minute Friday

This post is part of the weekly Five Minute Friday link-up.