One week after the International Women’s day, here is a stark reminder how the C-suite remains underrepresented by women. Data from a leadership-focused ETF underscores how uncommon female leadership remains among large U.S. companies.
Within the Wedbush ReturnOnLeadership U.S. Large-Cap ETF (NYSE:EXEQ) universe of 50 companies, only about 10% are led by women CEOs. Those include Jayshree Ullal of Arista Networks Inc (NYSE:ANET), Lori Koch of DuPont de Nemours Inc (NYSE:DD), Martina Cheung of S&P Global Inc (NYSE:SPGI), Ashley McEvoy of Insulet Corp (NASDAQ:PODD) and Debra Cafaro of Ventas Inc (NYSE:VTR).
The ETF tracks companies ranked through a leadership execution framework developed by Indiggo. Janeen Gelbart, co-founder and CEO of the firm, said the methodology evaluates corporate leadership broadly rather than focusing on individual executives.
“The ReturnOnLeadership model evaluates corporate leadership as a whole and is individual leader agnostic. One of the benefits of this is it allows us to maintain complete objectivity in the way we measure and rank corporations,” Gelbart told Benzinga.
“Elements such as strategic clarity, leadership alignment and focused action are all conduits to superior leadership execution and optimal outcomes,” Gelbart said.
She added that leadership has historically been difficult to quantify for investors.
“Leadership has historically been hard to quantify and measure, yet has an ongoing direct impact on real outcomes. We have been able to break through that barrier with a proven and tested product that consistently outperforms,” she said.
Leadership As An Investable Factor
The ETF itself tracks the Solactive Indiggo ReturnOnLeadership U.S. Large-Cap Index and follows a rules-based methodology.
Cullen Rodgers, chief investment officer at Wedbush Fund Advisers and portfolio manager of the ETF, said the strategy evaluates a different dimension than traditional factor investing.
“Traditional factor strategies typically rely on financial ratios or market characteristics such as profitability, balance sheet strength, or valuation. Those approaches measure the outcomes a company produces. The index underlying EXEQ looks at a different layer of concrete signals, organizational execution,” Rodgers said.
Companies such as Alphabet Inc (NASDAQ:GOOGL), Nvidia Corp (NASDAQ:NVDA), Microsoft Corp (NASDAQ:MSFT), and Delta Air Lines Inc (NYSE:DAL) appear in the portfolio based on that scoring system rather than discretionary stock picking.
“Because the methodology is rules based and passive, the portfolio reflects the outcome of the index ranking rather than subjective assessments of individual executives or personalities,” Rodgers said.
Rodgers said the approach introduces a structured way to analyze leadership.
“Leadership is not a trend. It is an eternal, highly influential driver of outcomes.”
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