Dear Patricia,

Did you see the article in Fortune's Most Powerful Women Newsletter? Our data was front and center!

Check out the article from Fortune below:

Women-led companies are outperforming the tariff crash

– Down but not out.

On Wednesday, Hypatia Capital released an analysis of its Women CEO ETF, an investable fund made up of U.S. public companies with female CEOs, from Jane Fraser’s Citi to Tricia Griffith’s Progressive. Over the last two chaotic months since President Donald Trump took office, the analysis found, businesses in the WCEO ETF had outperformed the broader market. While index benchmark ETFs dropped 6.2% in March, the WCEO ETF dropped only 4.9%.

Of course, later in the day on Wednesday, Trump gave his “Liberation Day” speech announcing the full scope of his tariff plan, sending markets into freefall. Thursday and Friday turned out to be the largest two-day wipeout of shareholder value ever recorded, according to Dow Jones. In total $11 trillion in value has been erased since Trump’s inauguration, with more than half of that disappearing last week. Hypatia Capital managing partner and chief investment officer Patricia Lizarraga went back to the drawing board and shared a new analysis with Fortune of women-led businesses’ stock performance through market close Friday.

On April 3, the S&P 600 fell 7.6% while the WCEO ETF fell 6.1%. By market close Friday, the WCEO ETF outperformed its benchmark by over 100 basis points. Hypatia conducted an industry-based analysis to determine whether the industries in its fund accounted for the difference—and determined that was not the reason why women-led businesses were outperforming the market.

The fund invests in all women-led public companies in the U.S. with at least a $500 million market cap. Lisa Su’s AMD is its top holding, followed by Jayshree Ullal’s Arista Networks and Revathi Advaithi’s Flex.

Lizarraga believes the 1.1% delta could be due to women-led companies’ likelihood of having more defensive balance sheets, lower debt-to-equity ratios, and higher cash reserves. In 2021, an article in the Journal of Behavioral and Experimental Finance found that female CEOs’ cash ratio was 18% higher than the mean among the top 1,500 publicly traded companies in the U.S. “In a down market, when investors may punish highly leveraged companies and reward stability and larger cash reserves, these traits may become a competitive advantage,” Lizarraga says. “The WCEO ETF, which includes a diverse range of companies from small-cap to mega-cap, may be benefiting from this prudence.”

When the startup and venture capital world entered its prolonged downturn in 2022 and focus shifted from growth to profitability, female founders found themselves better prepared; with less access to capital, many had long run their businesses more responsibly. The same now seems to be holding true for the largest women-led public companies in the U.S. After this morning’s market open, we’ll see whether this competitive advantage persists.

Emma Hinchliffe

emma.hinchliffe@fortune.com

A link to the article is here,

Is your investment advisor not able to invest in the WCEO ETF for you?

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What does the WCEO ETF invest in?

The WCEO ETF invests in American companies with women CEOs.

The WCEO ETF fits in a US Small Cap Blend allocation, due to its industry neutral and equal weighting methodology.

This is an innovative opportunity to invest in a publicly traded investment vehicle that specifically invests in women CEOs.

Why invest?

Capture Performance of Women CEOs

Create Impact:

Women Promote Women



Women Run More Sustainable Companies

Is it on purpose your portfolio is 90%+ male CEOs?

The fund seeks to provide capital appreciation. There is no guarantee the fund will meet its objective.

Who are the CEOs?

Currently, there are 167 women in our portfolio leading American companies with over $500 million in market capitalization in the U.S. You can see the full list of holdings on our website www.wceoetf.com.

How can this fit in a portfolio?



The WCEO ETF Morningstar category: U.S. Small Cap Blend.

We believe the WCEO ETF could be a core of a US equities allocation.

Best,

Patricia

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Investment Advisory Services are offered through Hypatia Capital Management LLC, a registered investment adviser.

Investors should carefully consider the investment objectives, risks and charges of the fund before investing. The prospectus contains this information and other information about the fund, and it should be read carefully before investing. Investors can obtain a copy of the prospectus by calling 888-338-3166. The fund is distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC, which is not affiliated with Hypatia Capital Management LLC

Important Risk Disclosures:

Exchange-traded funds involve risk including possible loss of principal.

he performance data quoted represents past performance. Past performance does not guarantee future results.

The Fund faces numerous market trading risks, including the potential lack of an active market for Fund sharers, losses from trading in secondary markets, and periods of high volatility and disruption in the creation/redemption process of the Fund. These factors may lead to the Fund's shares trading at a premium or discount to NAV.

The returns on a portfolio of securities that excludes companies that are not led by female Chief Executive Officers or that do not have an Executive Chairperson or Chairperson who is female, may trail the returns on a portfolio of securities that includes such companies. Investing only in a portfolio of securities that are led by female Chief Executive Officers or that have an Executive Chairperson or Chairperson who is female may affect the Fund’s exposure to certain types of investments and may adversely impact the Fund’s performance depending on whether such investments are in or out of favor in the market.

Because the Fund invests primarily in components of the Index, the Fund’s investments are subject to the risks associated with changes to the Index. The Fund will be negatively affected by general declines in the securities and asset classes represented in the Index. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to closely follow the Index. The Index Provider relies on third party data it believes to be reliable in constructing the Index, but it does not guarantee the accuracy or availability of any such third party data, and there is also no guarantee with respect to the accuracy, availability or timeliness of the production of the Index. In addition, the Fund is actively managed and does not track the Index and the Adviser’s investment approach may not produce the desired results and may cause the Fund to underperform the Index. In addition, the Fund incurs operating expenses and portfolio transaction costs not incurred by the Index. These risks may be heightened during times of market volatility or other unusual market conditions.

The Fund is newly formed ETF and has a limited history of operations for investors to evaluate.

The fund is distributed by Northern Lights Distributors, LLC. (Member FINRA/SIPC