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Equileap and Indxx partner to launch US Women in Technology Index

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Equileap, a provider of gender equality data & insights globally, has announced that it is to partner with Indxx to launch the Indxx Equileap US Women in Technology Index. 

The index, the first developed as a result of this partnership, will allow investors to align their portfolios with their values by tracking the performance of technology companies in the United States that are making the most improvement  in terms of gender equality throughout their whole corporations.

To be included in the Index, companies need to pass standard liquidity criteria as well as selection based on Gender Equality scores provided by Equileap which are calculated according to Equileap’s proprietary scorecard based on 19 criteria across four categories: Gender balance in leadership and workforce; Equal compensation and work/life balance; Policies promoting gender equality, Commitment, transparency and accountability. In addition, any companies with incidents of gender discrimination or sexual harassment that have triggered legal judgements or rulings are excluded from the Index.

Equileap’s findings in its 2023 Global Report show improvement within the technology sector and an encouraging upward trend in the average score of US companies, albeit slower when compared to other sectors and countries. Investing in companies that prioritise gender equality and diversity has become increasingly important, not only from a moral standpoint but also from a financial perspective. Companies with more gender equality and women in leadership positions tend to receive higher ESG scores and therefore receive more investments from ESG funds.

The Indxx Equileap US Women in Technology Index is drawn from companies included in the Indxx Technology Sector Index which is the initial universe. The final portfolio in the index will be composed of the top 50 companies with the largest one year momentum in Equileap’s gender equality score, calculated between preceding year and the year before preceding year. Constituents are weighted based on their security-level market capitalisation. 

Diana van Maasdijk, CEO of Equileap, says: “Once again, it’s clear that investing in women is not just the right thing to do, it’s the financially smart thing to do. The back-tested over-performance of the Indxx Equileap US Women in Technology Index of 5 per cent over the last five years against the Indxx 500 Index adds further weight to the evidence that better gender equality leads to higher performance even in a sector where, for the most part, women are underrepresented. This index is unique and focuses on a sector where investors can make a real difference by participating in the innovation and performance of US Tech companies that are making the most progress towards gender equality. We believe this index will motivate other Tech companies to do better and raise their gender equality game.”

Rahul Sen Sharma, President & Co-CEO of Indxx says: “The consequences of a lack of diversity can be far-reaching, hindering innovation, and limiting an industry’s potential to tackle complex challenges. Studies have also shown that companies with greater gender diversity not only boost employee engagement but also tend to perform better financially. Our partnership with Equileap allows us to fulfil our stewardship responsibilities and create unique opportunities within our indexing ecosystem by providing exposure to companies that are leading in terms of improving gender equality. We are excited to leverage our indexing expertise and Equileap’s unparalleled data to bring innovative gender equality focused indices to the market.”  

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