---
title: This Investing Strategy Can Help Close the Gender Wealth Gap (and Boost Your Returns)
description: Celebrate Women's Equality Day, and help create a more equitable society, through gender lens investing.
authors:
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    url: https://money.com/author/marguerita-cheng/
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editors:
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    role: Managing Editor
    url: https://money.com/author/kristen-bahler/
    bio: Kristen Bahler has spent more than a decade turning culture, work and consumer spending trends into conversation-driving stories. Today, she leads Money's sponsored content channel and reader-favorite franchises like Best Places to Live and Best Places to Travel.
    education: Northeastern University, MA Journalism
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    articles: 52
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      - Personal Finance
      - Pets
      - Professional Services
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    social:
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  - name: Paul Reynolds
    role: Senior Editor, Special Projects
    url: https://money.com/author/paul-reynolds/
    bio: Paul Reynolds is the Special Projects Editor at Money.com, with responsibilities that have included launching franchises in best autos and best airlines. Prior to his current role, he joined Money in 2020 as its insurance editor, overseeing life and auto insurance content as well as the site’s coverage of policies for pets, autos, businesses, travel and more.
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      - Health and Wellness
      - Housing
      - Identity Theft
      - Insurance
      - Lifestyle
      - Loans
      - Personal Finance
      - Pets
      - Professional Services
      - Retirement
      - Shopping
      - Taxes
    social:
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    former_staff: true
published: '2024-08-26T15:20:46.000Z'
modified: '2025-02-19T20:36:28.000Z'
section: Investing
tags:
  - Equal Pay
  - ESG
  - gender gap
  - Investing
  - wealth gap
  - Women's Equality
word_count: 751
canonical: https://money.com/gender-lens-investing-strategy/
type: Article
source: structured-blocks
---

> **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/).

![Photo Collage of a Woman holding a digital tablet, with a calculator, money and chart in the background](https://img.money.com/2024/08/Financial-Planners-2024-Womens-Equality-Day.jpg)

Today is Women’s Equality Day, a celebration of the progress made since American women won the right to vote more than a century ago. But in the fight for economic parity, there’s little to cheer for.

Despite efforts to remedy the income gap between the sexes, women still earn just 82 cents for every dollar earned by men, [Pew Research shows](https://www.pewresearch.org/short-reads/2023/03/01/gender-pay-gap-facts/). This disparity persists across education levels: Men without high school diplomas make an average of $151 more per week than women without one, while men with advanced degrees earn $452 more per week than women with the same level of education, according to the [U.S. Department of Labor Statistics (DOL)](https://blog.dol.gov/2023/03/14/5-fast-facts-the-gender-wage-gap).

It’s not all doom and gloom, however. According to a [Fidelity study](https://preview.thenewsmarket.com/Previews/FINP/DocumentAssets/651505.pdf), 60% of women invested in the stock market in 2023, up from 44% in 2018. And more of them — plus many men — are using their financial prowess to uplift other women.

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INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE. Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA / SIPC.

Gender lens investing, as it’s called, aims to create a more equitable society by intentionally investing in causes, businesses and products that advance gender equality. It’s a strategy that commands a growing share of the stock market, and, according to a mounting body of research, above-average returns.

More investors are incorporating gender lens investing into their portfolios in 2024 than ever before. Here’s how to join them.

## Define your intent and do your due diligence

Gender lens investing is a versatile tool that can be implemented in a myriad of ways.

For individual investors, one point of entry is through mutual funds and ETFs like Natixis’ [Mirova Women Leaders and Diversity Equity Fund](https://www.im.natixis.com/en-ch/funds/fund-details.LU2102403222#literature), an international fund that invests in companies that “contribute to the achievement of sustainable development goals with a focus on gender diversity and women empowerment.” BNY Mellon's [Women's Opportunity ETF](https://im.bnymellon.com/us/en/individual/products/etf/fund/bny-mellon-womens-opportunities-etf.html) and State Street’s [SPDR Gender Diversity ETF](https://www.ssga.com/us/en/intermediary/etfs/spdr-msci-usa-gender-diversity-etf-she) have similar objectives and have both outperformed the S&P 500’s 30-year average annual return (10%).

You can also invest directly in companies that have demonstrated a strong commitment to this cause. Bloomberg’s [Gender Equality Index](https://assets.bbhub.io/professional/sites/41/Bloomberg-Gender-Equality-Index-GEI-KPI-Notice-August-4-2023.pdf), for one, lists hundreds of publicly-traded companies — including tech giants like Accenture and Nvidia — committed to fostering hiring diversity, supporting female talent and addressing wage discrimination.

This, too, has the potential for excellent returns. According to a recent [Morgan Stanley study](https://www.morganstanley.com/articles/gender-diversity), companies that prioritize gender diversity outperform their peers by an average of 1.2% annually. A separate 2017 study from [McKinsey & Company](https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-matters) found that companies with gender-diverse executive teams were 21% more likely to have above-average profitability.

Find options that align with your values, and, as with any investment approach, research the potential risks of each one.

If you have a financial planner or advisor — or are considering getting one — they can help you incorporate gender-lens investment into your portfolio, identify suitable investments and decide how much of your holdings should go towards a gender-lens approach. [Ellevest](https://www.ellevest.com/), a women-led robo advisor that allows clients to opt-in to gender lens automated investing, is a digital option worth exploring.

## Take a sustainable approach

You don’t have to take an “all or nothing” approach to gender lens investing. Start small, by educating yourself on the challenges women face at work, in their communities and in the global economy, and how you can help ease these burdens. Online directories like [Buy From a Black Woman](https://www.buyfromablackwomandirectory.org/) and [Women Owned](https://buywomenowned.com/women-owned-directory/) are great resources for supporting gender equality through your purchase decisions if a formal investment strategy isn’t feasible for your budget.

Whatever route you take, gender lens investments should be a modest part of your portfolio, even if you’re deeply committed to what they represent. When discussing your investments with your financial advisor, be honest about your personal values. While gender lens funds can offer good returns, many of the top-performing ones are weighted towards big tech companies. If you're looking to support smaller, women-owned businesses, you might need to explore alternative investment strategies.

Still, given their potential to tackle the ongoing economic challenges that women encounter, gender lens investing deserves consideration in your portfolio. Not least on a day dedicated when we celebrate and promote the equality of women.

*Advice from guest contributors like Marguerita does not necessarily reflect that of Money and its staff.*

Here’s Money’s list of America’s [best financial planners.](https://money.com/best-financial-planners/)

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![](https://s3.consumersadvocate.org/prd/image/image/20107/medium_fab74697-be3e-49a4-8040-ea434cb0e5c3.png)

Become a better investor with SoFi®

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