The ETF Searching for Alpha Without the Male

Women-led companies are outperforming in the market, according to the Hypatia Women CEO ETF (WCEO). This exchange-traded fund, managed by Hypatia Capital, has a focus on investing in big public companies with female CEOs, leading to a 21% return year to date, compared to under 14% for the S&P 500. The fund has recently reached two key milestones: it has $10 million in assets and a three-year track record.

Hypatia Capital's Patricia Lizarraga believes that women in corporate America face challenges that can make them more resilient and make boards more likely to select the best person to lead an organization. Despite lagging behind the S&P SmallCap 600 Index, the fund's performance is attributed to its focus on women-led companies, with top holdings in oil and gas, asset management, and insurance sectors.

Larger funds like the State Street SPDR MSCI USA Gender Diversity ETF and the Impact Shares Women's Empowerment ETF also have proven returns, but distribution has been a challenge for WCEO.