To Diversify, Companies Look to Black Colleges
This week, we talk about how big corporations are turning to historically Black universities to boost diversity among their ranks and how the pandemic has made that push easier.
Welcome to our weekly chat about the environmental and social issues that influence the way we work, spend our money and live our lives. We're your hosts, Maitane Sardon and Dieter Holger. Want to get our newsletter every Wednesday? Hit the subscribe button in the upper right corner and please share with your friends!
Hi, Maitane. U.S. corporations are scrambling to find ways to hire and eventually promote more people of color in their ranks after this year’s protests for racial justice. Some big companies like Chevron and McKinsey think historically Black universities hold the answer and the pandemic has made it easier to reach more schools virtually than in-person.
Colleges like Howard University have seen a surge of company interest. Howard says it usually has around 40 companies at its career fair. This year, it hosted about 140 virtually.
Consulting firms McKinsey and KPMG have more than doubled the number of historically Black colleges they are reaching. The pandemic has made that a lot easier since they just attend online.
Besides the pandemic, another reason we are seeing this surge is that many companies made new pledges this year to bolster diversity.
There is also an investment case since more and more funds consider how companies approach diversity and inclusion. Human-resources experts say that strong D&I practices can help attract and retain talent, especially from younger generations. Speaking of investing, what else do you have your eye on, Maitane?
One thing that I’m watching is the current fee war between investment houses offering exchange-traded funds. As you know, passive investing has become very popular among investors who want low-cost access to the U.S. stock market and don’t want to pay for an expert to select stocks. To attract those cost-conscious investors, the main players in the ETF field have been launching cheaper copycat versions of their most popular funds.
Really? What’s the latest ETF clone they’ve launched?
Invesco earlier this month launched the Invesco Nasdaq 100 ETF, a near carbon copy of its popular Invesco QQQ Trust, a tech-focused ETF that has $141 billion in assets and is one of the most traded securities in the world. The latter charges investors annual fees of 0.2%, or $2 for every $1,000 they put into the ETF, while the newly-launched ETF charges fees of 0.15% or $1.5 for every $1,000 invested a year.
What am I looking at? The chart above shows the performance year-to-date of popular ETF Invesco QQQ Trust (also known by its ticker QQQ) compared with the S&P 500 index. QQQ tracks the Nasdaq 100 Index, which is heavily allocated toward companies in the tech, consumer-services and health-care sectors, industries that have massively outperformed in recent years. QQQ now has a clone, the Invesco Nasdaq 100 ETF (QQQM).
The low-fee trend is good news for everyday investors. Now, let’s open it up to our readers: How do you think companies should support diversity and inclusion?
Share your thoughts below, email us or catch us on Twitter. Your words could appear in our next edition! Have a great week and remember to wash your hands. 👋
Meet the team:
Elevate the Conversation is produced by the editorial teams of The Wall Street Journal and Dow Jones Newswires. Here's a little bit more about us, along with our contact information. We'd love to hear from you.
Dieter Holger, Reporter: I have a knack for uncovering values-based investing trends and I’m obsessed with spreadsheets and charts. I really enjoy ‘80s music, skateboarding and yoga (but I’m bad at both). dieter.holger@wsj.com @dieterholger
Maitane Sardon, Reporter: I have a passion for amplifying the voices of those at the center of stories. I love running on Barcelona’s beaches and binging on chocolate ice-cream to compensate (it’s all about balance). maitane.sardon@wsj.com @sardonmaitane
Catherine Lindsay, Editor: I like breaking down complex ideas and explaining them. On the weekend, you’ll find me wandering the city with my film camera at the ready. catherine.lindsay@wsj.com @CathsLindsay
Tammy Lian, Designer: As a visual producer, I'm always excited by the challenge of creative problem solving. In my spare time, you can usually find me taking care of my ever-growing collection of plants and drinking tea. tammy.lian@wsj.com @violian.tammy