Monday, April 11, 2022

The LGBTQ100 index beats the S&P500

It’s not easy to beat the untouchable S&P500, but some indices do. This is the case of the LGBTQ100, a stock market indicator that includes the 100 US firms with the best practices and benefits for LGBTQ workers. 

Among the pillars to enter the index are non-discrimination policies, comparable benefits for LGBTQ families and inclusive culture. Candidate constituent companies are evaluated on key factors by a representative group of the LGBTQ community.

Since December 31, 2014, the LGBTQ100 has been revalued by 177% as collected Bloomberg. In the same period, S&P500 up 118%. The annualized return of the index queer it stands at 15% since its launch, compared to 11% for the S&P500.

Which companies are part of this indicator? Most of its heavy hitters are household names to investors: Tesla weights 4%, followed by AppleAmazon, Microsoft and cloud technology firm ServiceNow, with weights of 3% or more.

If, instead of looking at the ones that weigh the most, we focus on those that obtain the best scores in ESG (environmental, social and good governance) issues, the ones that stand out are CBRE Group, Adobe, Nvidia, Automatic Data and again Microsoft. 

Other interesting fact about diversity is the percentage of employees who belong to a social minority. It is only available to 28 of the 100 members of the LGBTQ100, and the first is Marriott International, with 67%. It is followed by Alphabet and the business services firm Iron Mountain, with 52%; the Target department store group, with 50% and Servicenow, with 44%.


Index evolution

No comments:

Post a Comment