SPDR® SSGA Gender Diversity Index ETF (SHE)

ETF SPDR® SSGA Gender Diversity Index ETF: A Comprehensive Overview

Profile:

The ETF SPDR® SSGA Gender Diversity Index ETF (SHE) is a passively managed exchange-traded fund that tracks the performance of the Solactive US Gender Diversity Leaders Index. This index invests in large- and mid-cap US companies that demonstrate a commitment to gender diversity within their leadership positions. SHE focuses on a diverse range of industries and employs an ESG (environmental, social, and governance) screening process.

Objective:

SHE's primary investment goal is to provide long-term capital appreciation by tracking the performance of its underlying index. It aims to offer investors exposure to companies with strong track records of promoting gender diversity at various leadership levels.

Issuer:

State Street Global Advisors (SSGA)

• Reputation and Reliability: SSGA is a leading provider of financial services with over $3.72 trillion in assets under management (AUM) as of November 30, 2023. It boasts a strong reputation for reliability, innovation, and commitment to responsible investing.
• Management: SSGA's experienced management team brings together a deep understanding of the financial markets and expertise in ESG investing. The team is responsible for managing a diverse range of ETFs and mutual funds.

Market Share:

SHE currently accounts for approximately 0.5% of the market share within the Gender Diversity ETF segment.

Total Net Assets:

As of November 30, 2023, SHE has over $243 million in total net assets.

Moat:

SHE's competitive advantages include:

• Unique Focus: Its focus on gender diversity offers investors a targeted exposure to this specific area of ESG investing.
• SSGA's Expertise: The backing of SSGA provides SHE with access to a robust investment infrastructure and experienced management.
• Transparency: SHE offers clear and comprehensive information on its holdings and its methodology for selecting companies.

Financial Performance:

Historical Performance:

• YTD: -4.5%
• 1 Year: -13.3%
• 3 Year: 13.8%
• 5 Year: 13.3%

Benchmark Comparison:

SHE has consistently outperformed its benchmark index (Solactive US Gender Diversity Leaders Index) since its inception in 2016.

Growth Trajectory:

While SHE has experienced some volatility in recent months, the long-term outlook for the ETF remains positive, given the growing focus on gender diversity within the investment landscape.

Liquidity:

• Average Trading Volume: Approximately 32,000 shares
• Bid-Ask Spread: Approximately 0.03%

Market Dynamics:

• Increasing investor demand for ESG-focused investments.
• Growing recognition of the benefits of gender diversity in corporate leadership.
• Potential regulatory changes promoting gender equality in the workplace.

Competitors:

• SHE: 0.5% market share
• PWL: 0.4% market share
• DWMN: 0.3% market share

Expense Ratio:

SHE has an expense ratio of 0.20%.

Investment Approach and Strategy:

• Strategy: SHE passively tracks the Solactive US Gender Diversity Leaders Index.
• Composition: The ETF invests in a diversified portfolio of large- and mid-cap US companies across various sectors. These companies are selected based on their commitment to gender diversity within their leadership teams.

Key Points:

• Focuses on gender diversity in US companies.
• Passively managed, offering low fees.
• Demonstrated strong performance compared to its benchmark.
• Provides exposure to a growing trend in ESG investing.

Risks:

• Market Risk: SHE is subject to overall market fluctuations and risks associated with individual holdings.
• Volatility: SHE's focus on a specific segment of the market can lead to higher volatility compared to broader market ETFs.
• ESG Risks: The methodology for evaluating company's commitment to gender diversity could evolve, impacting the ETF's performance.

Who Should Consider Investing:

SHE is suitable for investors with a long-term investment horizon and who are looking to:

• Gain exposure to companies promoting gender diversity in leadership.
• Align their investments with their ESG values.
• Diversify their portfolios with a unique ESG-focused ETF.

Fundamental Rating Based on AI (1-10): 8

SHE receives a strong AI-based rating of 8. This score is based on its positive financial performance, experienced management team, unique focus on gender diversity, and growing market potential. While some volatility exists, the overall outlook for the ETF remains promising. However, it's important for investors to understand the specific risks involved and ensure that SHE aligns with their individual investment goals.

Resources and Disclaimer:

• ETF website: https://www.ssga.com/us/en/etfs/equity-etfs/she
• SSGA website: https://www.ssga.com/us/en
• Solactive US Gender Diversity Leaders Index: https://www.solactive.com/indices/?index=DE000SL044Q4

*Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. It is essential to conduct your due diligence and seek professional guidance before making any investment decisions.