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The ETF betting that women-led companies outperform — and building the data to prove it

Reported by Pensions & Investments
Sep 30, 2026· 2 min read
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Key Takeaways
  • • The Hypatia Women CEO ETF (WCEO), an actively managed fund investing in U.S. companies led by female CEOs, returned 16.3% year-to-date as of September 2026, outpacing the S&P 500's approximately 12% return.
  • • The fund's underlying index has outperformed its benchmark by more than 20 percentage points over the past five years, demonstrating sustained outperformance of women-led companies.
  • • Managing partner Patricia Lizarraga founded the strategy with the explicit mission to build empirical data proving that women-led companies outperform, positioning the ETF as both an investment vehicle and a data-collection platform for institutional validation.
  • • The fund has attracted institutional interest and is pursuing growth among registered investment advisors (RIAs), leveraging its outperformance track record to expand distribution.
  • • WCEO recently hit all-time highs in 2026, capitalizing on a market shift away from concentrated mega-cap technology stocks that had previously dominated broader indices.
Summary
The Hypatia Women CEO ETF represents a thematic investment strategy betting that companies led by female executives deliver superior returns. As of late September 2026, the actively managed fund was up 16.3% year-to-date, meaningfully ahead of the S&P 500's roughly 12% return. The two-year-old fund's recent strength reflects both sector rotation in the broader market—a pullback from mega-cap technology dominance—and the underlying thesis that gender-diverse leadership correlates with operational excellence and shareholder value creation.

The fund's longer-term track record underscores the conviction behind the strategy. Over the past five years, WCEO's underlying index has outperformed its benchmark by more than 20 percentage points, providing quantitative support for what has long been an institutional investing thesis lacking robust empirical evidence. Managing partner Patricia Lizarraga, who has focused on women-in-leadership investing since 2007, framed WCEO as both an active fund and a data-collection apparatus. In interviews, Lizarraga stated that while she has "long believed women-led companies outperform," the institutional market requires clear, auditable data before allocating capital at scale. The ETF exists partly to build that evidentiary foundation.

The strategy is gaining traction with institutional and advisory channels. WCEO has set multiple all-time highs during 2026 and is actively seeking growth among RIAs and institutional investors who view gender-diverse leadership as both a governance signal and a potential source of alpha. The fund's outperformance, combined with growing investor focus on leadership quality and ESG factors, positions it as a credible alternative to traditional cap-weighted indices for allocators seeking both thematic exposure and performance.

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Sources

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Pensions & Investments The ETF betting that women-led companies outperform — and building the data to prove it