As new exchange traded fund (ETF) options continue to become available, the broad range of options available to investors can often provide more noise than choice, with many simply choosing simplified ETF options such as index-tracked ETFs or the most popular options available at any given time.
One of the newest (and most popular) ETFs out there right now, however, is the RBC Vision Women's Leadership MSCI Canada Index ETF (RLDR). This non-traditional ETF is focused on investing in companies which have taken actionable steps in being more gender-inclusive at the top of their organizations. The top five holdings of the fund are a group of five mega-cap Canadian juggernauts: Royal Bank of Canada (TSX:RY)(NYSE:RY), Toronto-Dominion Bank (TSX:TD)(NYSE:TD), Enbridge Inc. (TSX:ENB)(NYSE:ENB), Suncor Energy Inc. (TSX:SU)(NYSE:SU), and Bank of Nova Scotia (TSX:BNS)(NYSE:BNS).
A number of studies have shown that companies sporting a higher percentage of women in senior leadership roles have outperformed competitors with fewer women in senior management positions. Taking this philosophy to the next level in creating a fund which invests in only such companies is a trend which is already underway - two other funds offered by Canadian money management firms have been launched previously, with great success.
The top five holdings of this fund are five picks which any investor would have trouble going wrong with - knowing that a higher than average proportion of these companies' management teams are women is a bonus.
While many of the new ETF offerings out there may indeed turn out to be "noise" in the grand scheme of things, this is one fund which should stand out.
Invest wisely, my friends.
