June 21, 2022 | 5:00 a.m.
Since its launch nearly three years ago, the LGBTQ100 ESG INDEXwhich integrates the 100 companies with best practices and benefits for the Lesbian, Gay, Bisexual, Transsexual, Queer community and other groups that are not represented in this acronym of sexual diversity (LGBTQ+)accumulates a double-digit performance that even exceeds that of the S&P 500one of the three main indices of wall street.
The stock indicator created by the firm LGBTQ Loyalty It began trading in November 2019 at 1810.27 points and on Friday of last week it closed at 2,250.55 units, which is equivalent to a rise of 24.32%.
The profit is greater than the one delivered by the S&P 500 in the same period. The reference that groups the 500 most liquid companies in the United States market accumulates a return of 20.97%.
During December of last year, the LGBTQ100 ESG INDEX touched its highest level, of 2,922 points, according to data from tradingview.comin the middle of rally who experienced the financial markets by the injection of liquidity during the pandemic.
All companies that are part of the index must comply with certain statutes in order to encourage and promote equality in the workplace for employees of all genders and orientations.
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In order to enter this index, it is essential that companies have a solid history of loyalty and brand recognition among 11.5 million people in the United States of the LGBTQ+ community and consistently strong financial performance.
It is also an index with Environmental, Social and Governance (ASG) criteria. It is part of a provider that evaluates and guarantees that companies have corporate governance and responsible investment both environmentally and socially.
said Guillermo Guzmán, CEO of Trading Advisor.
A Mexican investor who wants to acquire exposure to the index or the Exchange Traded Fund (ETF) you must open an account with an broker of the United States, since it is not available in the International Quotation System (SIC) from the local stock market.
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How is it made up?
Although it is a diversified index in its composition, the greatest weight within the LGBTQ100 ESG INDEX is held by the names of well-known companies with large market capitalization.
The company with the most weight in the index is Tesla of 3.44%, followed by Manzana of 3.28%; amazon of 3.21%; Service Now of 3.18%, and microsoft of 2.96%.
If ordered by those companies that have the best scores by MSCI on ESG issues, the ones that stand out are CBRE Group, Adobe, Nvidia, Automatic Data Y microsoft.
The Index is rebalanced annually based on a survey of the 500 largest publicly traded companies in the United States compiled by Harris Poollin addition to monitoring of institutional investors on ESG practices.
In addition, it is grouped by sectors and none can represent more than 25% of the total weight. The top three sectors are technology, with a weight of 23.17%; health, 18.68%, and financial, 13.47%.
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From saying to doing
More and more companies are seeking to promote diversity programs, but there are also cases of LGBTQ100 ESG INDEX organizations reported for harming members of this community.
Two examples of companies recognized for their good practices are microsoft and apple, according to Guzman.
The former has an internal group of LGBTQ+ employees that started with 12 members and now has more than 2,000 members globally in 36 countries. Meanwhile, the CEO of Apple, Tim Cookcame out as gay in 2014, making him the first gay CEO of a company Fortune 500.
On the other hand, although Tesla has obtained an excellent rating in the HRC Corporate Equality Index for seven consecutive years (Human Rights Campaign)the automaker Elon Musk has faced lawsuits from employees alleging discrimination.
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Although there are still bad practices, Daniel García Burgos, specialist in human rights from UNAMconsidered that companies are seeking to adapt to the new inclusive reality, since many of them have a global presence and try to increase their productivity.
He added that the internal and external management of the company must go in the same direction to generate trust and create a good reputation among its potential buyers.
In short, it is a circular incentive that companies that belong to the LGBTQ100 index are experiencing. We will hardly see social changes in the blink of an eye, as the impatient society pretends, but I firmly believe that although social evolution will take time, it is moving towards it