/Stocks with the greatest diversity
Stocks with the greatest diversity

Stocks with the greatest diversity

Shares of companies with greater gender, ethnic and racial diversity can produce higher returns for investors, according to Bank of America.

The bank said in a report published last week, ahead of International Women’s Day, that its environmental, social and governance team had found that S&P 500-listed companies with above-average gender diversity on their boards saw a 15% higher return-on-equity, compared to firms with less diverse boards.

Meanwhile, BofA found ROE was 8% higher for companies in the S&P 500 with a more ethnically and racially diverse workforce, compared to less diverse firms.┬áROE is a measure of profitability that is calculated by dividing net income by shareholders’ equity.

With that in mind, BofA listed the 10 global stocks scoring highest on Refinitiv’s 2020 Diversity & Inclusion index: