Invest in UN SDG Goal 5: Gender Equality with ESG ETFs

The United Nations Sustainable Development Goals (SDGs) are 17 goals that all UN Member nations have agreed to achieve by 2030. They set out an ambitious mission to eradicate issues that affect our society and environment. Gender Equality has a central place in UN's agenda on societal balance through its SDG #5 entitled “Achieve gender equality and empower all women and girls” and underpinned by 9 ambitious targets. In this article we highlight how you can contribute to UN SDG Goal 5: Gender Equality with ESG Exchange-Traded Funds (ETFs).

17 SDGs for a better future

The Sustainable Development Goals (SDGs) are 17 goals with 169 targets set by the United Nations in 2015 as a global initiative to tackle issues that affect humans and the environment we live in, with the hope of achieving tremendous progress by 2030.

The 17 sustainable development goals (SDGs) to transform our world:

1. No Poverty
2. Zero Hunger
3. Good Health and Well-being
4. Quality Education
5. Gender Equality
6. Clean Water and Sanitation
7. Affordable and Clean Energy
8. Decent Work and Economic Growth
9. Industry, Innovation and Infrastructure
10. Reduced Inequality
11. Sustainable Cities and Communities
12. Responsible Consumption and Production
13. Climate Action
14. Life Below Water
15. Life on Land
16. Peace and Justice Strong Institutions
17. Partnerships to achieve the Goal

Each goal has several targets and is measured quantitatively by indicators provided by private and public entities. The creativity, knowhow, technology, and financial resources from all stakeholders are necessary to achieve the SDGs in every context. The beauty of these goals is their interrelation, meaning that action in one area will affect outcomes in others. The development of those goals must balance social, economic and environmental sustainability.

What is UN SDG GOAL #5: Gender Equality?

Other than being a basic human right, gender equality is a key ingredient in societal development. Over the last few decades, the world of women has witnessed remarkable progress, with more girls going to school, fewer girls forced into early marriage, more women serving in parliament and positions of leadership, and laws being reformed to advance gender equality.

Despite the significant leap, stats show that there are many challenges left to tackle. In 18 countries, husbands can legally forbid their wives from working and in 39 countries, daughters and sons do not have equal inheritance rights.

49 countries have not yet put out laws that protect women from domestic violence. 1 in 5 women and girls, including 19% of women and girls aged 15 to 49, have experienced physical and/or sexual violence by an intimate partner within the last 12 months.

In politics, women made breakthroughs but continue to be underrepresented at all levels of political leadership with less than 25% representation in national parliaments on average.

As the 5th UN Sustainable goal, "Gender Equality" has 9 targets set for completion by 2030:

1. Stop discrimination against women.
2. End all forms of violence and exploitation against women.
3. Stop child, early and forced marriage and other harmful practices against women.
4. Recognize and cherish unpaid care and domestic work through the provision of public services, infrastructure, and proper social protection policies.
5. Provide equal opportunities and participation for women at levels of decision making.
6. Provide universal access to sexual and reproductive health and reproductive rights.
7. Give women equal access to economic resources and other forms of ownership (land, property, financial services, inheritance, and natural resources).
8. Empower women through enabling technology, in particular information and communications technology.
9. Strengthen and enforce policies and legislation that promote gender equality and women empowerment.

The United Nations along with other stakeholders have put together hundreds of actions to achieve these targets. They have defined 14 statistical indicators by which the world aims to track whether these targets are achieved.

Investors can support Gender Equality with ESG ETFs

Today, impact investing has become the norm, with billions of dollars flooding the market in adequately screened investments, focusing on entities that align their operations with SDG and ESG initiatives (Environmental, Social, Governance). Corporate Social Responsibility departments (CSR) went from being a cost burden to an existential necessity that represent employees and consumers values.

The change in investors' mindsets has given birth to mutual funds and ETFs that provide exposure to securities that work towards achieving ESG or SDG goals. It allows them to invest in opportunities that can provide wealth accumulation while making an impact.

List of ESG ETFs promoting Gender Equality

Trackinsight analyzes the fact sheets and other publicly available information of all ETFs in the ESG universe. The information is screened for statements that show an explicit tilt towards specific Sustainable Development Goals.

In relation to the "Gender Equality" goal, Trackinsight identifies 11 ETFs totaling $1.46 billion (sorted by Assets Under Management):

1.     UBS ETF (IE) Global Gender Equality UCITS ETF (GENDEW): $944.59 million

2.    SPDR SSGA Gender Diversity Index ETF (SHE): $296.54 million

3.    Lyxor Global Gender Equality (DR) UCITS ETF (VOOM): $61.96 million

4.    Nomura Next Funds MSCI Japan Empowering Women Select Index ETF: $58.32 million

5.    Impact Shares YWCA Women's Empowerment: $34.52 million

6.    Mackenzie Global Women's Leadership ETF: $27.72 million

7.    Daiwa ETF MSCI Japan Empowering Women Index: $14.79 million

8.    RBC Vision Women’s Leadership MSCI Canada Index ETF: $12.21 million

9.    IQ Engender Equality ETF: $5.11 million

10.  BMO Women in Leadership Fund ETF: $2.90 million

11.  Fidelity Women's Leadership ETF: $2.70 million

These ETFs invest in companies that promote gender diversity and women’s leadership, either domestically or anywhere in the world. These underlying holdings tend to encourage shareholder engagements that focus on influencing corporate policies and behaviors, putting them in a position to reap the benefits associated with gender diversity.

The UBS ETF (IE) Global Gender Equality UCITS ETF (GENDEW)is the biggest ETF in that space with more than $944 million in assets, distributed between 7 shares classes (different currencies and/or different dividend policies). The fund tracks the Solactive Equileap Global Gender Equality 100 Leaders Index (in its different variations). The fund trades on multiple European stock exchanges and charges 0.20% or 0.30% in annual fees.

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