Women-Led Companies: The Best ETFs, Mutual Funds, and Stocks for Diversity-Focused Investors

 

In recent years, investors have increasingly recognized the value of diversity, gender equity, and inclusive corporate leadership. Women-led companies, in particular, have delivered strong performance across multiple industries—from technology and finance to healthcare and consumer goods. Studies consistently show that companies with more women in leadership roles tend to experience higher profitability, better innovation, and stronger long-term growth.

For diversity-focused investors in 2025, there are now more accessible ways to invest directly in women-led and women-focused companies through ETFs, mutual funds, and individual stocks. This guide breaks down the best investment options, how they work, and why women-driven leadership is becoming a powerful financial force.

Why Invest in Women-Led Companies?

1. Proven Financial Performance

Research from McKinsey, MSCI, and S&P shows that companies with more women in leadership roles often:

·         outperform male-dominated companies

·         deliver stronger long-term returns

·         make better strategic decisions

·         show higher resilience in downturns

2. Better Innovation

Gender-diverse teams bring broader perspectives, helping companies innovate faster and respond more effectively to market changes.

3. ESG Momentum

Environmental, Social, and Governance (ESG) investing continues growing, and gender diversity is now one of the top ESG criteria used by major institutions.

4. Support for Equality

Investing in women-led companies is a powerful way to financially support organizations that promote fairness, equal opportunity, and inclusive corporate cultures.

Best ETFs Focused on Women-Led and Diversity-Driven Companies

For investors looking for convenience, transparency, and diversification, ETFs (Exchange-Traded Funds) are one of the easiest ways to gain exposure to women-led businesses.

Below are the leading women-focused ETFs in 2025:

1. SHE – SPDR SSGA Gender Diversity Index ETF

One of the most popular gender-diversity ETFs, SHE tracks U.S. companies with strong female leadership, including women CEOs and high percentages of women on boards and executive teams.

Why Investors Like It

·         Strong long-term performance

·         Exposure to large-cap blue-chip companies

·         Diversified across 200+ holdings

Ideal For: Long-term investors, ESG portfolios, and passive investors.

2. WOMN – Impact Shares YWCA Women’s Empowerment ETF

WOMN focuses specifically on companies committed to gender equity, women’s empowerment, fair pay, and safe workplace standards.

Key Strengths

·         Screens companies using U.N. Women’s Empowerment Principles

·         Supports impact investing through nonprofit partnerships

Ideal For: Investors who want measurable social impact.

3. EQWL – Invesco Russell 1000 Equal Weight ETF (Popular with Diversity Investors)

Although not exclusively women-focused, EQWL gives equal weight to companies regardless of size, allowing many women-led mid-cap and small-cap companies to have more influence in the index.

Strengths

·         Removes mega-cap domination

·         Gives leadership-diverse companies more room to shine

4. FANZ – Gender Equity Index ETF (Emerging Option in 2025)

This ETF (newer but gaining traction) focuses on companies with significant female leadership representation across all corporate layers.

Best Mutual Funds Focused on Women-Led Companies

Mutual funds can be ideal for retirement accounts, long-term investors, and those who prefer active management.

1. Pax Ellevate Global Women’s Leadership Fund (PXWEX)

The most recognized women-focused mutual fund worldwide.

Why It Stands Out

·         Invests exclusively in companies with female CEOs, CFOs, or strong board diversity

·         Long track record of solid performance

·         Managed by experts in gender-lens investing

Ideal For: 401(k), IRA, long-term ESG investors.

2. Fidelity Women’s Leadership Fund (FWOMX)

This actively managed fund selects companies that champion women’s leadership and gender equity.

Strengths

·         Backed by Fidelity’s deep research team

·         Focus on U.S.-based growth companies

·         Screens for female representation and inclusive workplace practices

3. BNY Mellon Women-Led Firms Fund

A niche fund investing exclusively in publicly traded companies run by female CEOs or majority-female executive teams.

Top Stocks of Women-Led Companies (2025 Edition)

For investors who prefer picking individual companies, here are some standout women-led companies worth considering. (Leadership may change over time, but these represent strong women-driven firms as of 2025.)

1. General Motors (GM)

CEO: Mary Barra
Mary Barra is one of the most influential CEOs in the world. Under her leadership, GM has expanded aggressively into EV manufacturing, battery innovation, and autonomous driving.

2. Citigroup (C)

Former CEO: Jane Fraser (Leadership influence continues)
Jane Fraser made history as the first woman to lead a major U.S. bank. Her focus on modernization and digital banking still drives Citi’s long-term strategy.

3. Rite Aid (RAD)

CEO: Elizabeth (“Liz”) Burr
Rite Aid’s strategic transformation and store modernization efforts continue under female leadership.

4. Nasdaq, Inc. (NDAQ)

CEO: Adena Friedman
Adena Friedman has led Nasdaq’s move toward fintech, data analytics, and digital trading infrastructure.

5. Bumble (BMBL)

Founded by Whitney Wolfe Herd
Bumble remains one of the top women-led social apps centered around empowering women in digital relationships.

6. Hershey (HSY)

CEO: Michele Buck
Under Buck’s leadership, Hershey has seen strong sales, smart acquisitions, and strategic product expansions.

7. Oracle (ORCL)

Influence of Safra Catz, long-standing female co-CEO
Oracle continues to grow in cloud computing with leadership influence from one of tech’s most respected female executives.

How to Build a Diversity-Focused Portfolio

Here’s a simple guide to structuring a women-led investment portfolio:

1. Core Holdings (60–70%)

Use ETFs and mutual funds for diversification:

·         SHE

·         WOMN

·         PXWEX

·         FWOMX

2. Growth Stocks (20–30%)

Add top women-led companies such as:

·         GM

·         NASDAQ

·         Hershey

·         Oracle

3. High-Conviction Picks (10%)

Choose emerging women-led startups or smaller-cap companies.

Final Thoughts

Investing in women-led companies is more than a values-driven strategy—it’s a smart financial decision backed by data, global trends, and consistent performance. With expanding ETF and mutual fund options, plus many strong women-run companies across the S&P 500 and Nasdaq, diversity-focused investing is easier and more powerful than ever.