Sallie Krawcheck has long preached the financial benefits of gender diversity in Corporate America.
The former Wall Street executive is now putting her money where her mouth is.
On Wednesday, Krawcheck took a major stake in the first and only mutual fund in the U.S. that focuses on investing in companies with strong track records for advancing female leadership.
"While gender diversity is a nice-to-do, I have become convinced that gender diversity is also a smart-to-do ... and an under-appreciated driver of superior company performance," Krawcheck wrote in a LinkedIn Influencer post titled "Investing 2.0: A Modern Way to Invest."
The new fund, dubbed the Pax Ellevate Global Women's Index Fund, seeks to measure and capture the contribution of gender diversity to business success. It will replace the Pax World Global Women's Equality Fund (PXWEX).
Thirty-one percent of the board seats and 24% of executive management positions of the companies in the new fund are held by women, compared with a global average of just 11% for each. All of the companies in the fund have at least one woman on their board and 97% have at least two.
Krawcheck pointed to research that indicates diverse leadership teams suffer less groupthink, generate higher returns on equity, focus more on clients, enjoy greater innovation and feature lower gender pay disparities.
Yet "progress on gender diversity in corporate America has actually stalled ... and in the financial services industry we've gone backward," said Krawcheck, who previously served as chief financial officer of Citigroup (C) and head of Bank of America's (BAC) Merrill Lynch division.
Krawcheck recently told CNN Money that Wall Street went into the crisis, "white, male and middle aged" and came out "whiter, male-er and middle age-er."
In an effort to fix this issue, Krawcheck has invested in the Ellevate global professional women's network, which sports 34,000 members and was formerly named 85 Broads.
There are some on Wall Street who don't think that socially conscious investing can be profitable.
Krawcheck even joked: "Isn't impact investing about eating a lot of granola and hugging a bunch of trees?"
But she believes the next wave of investors "seek to earn a fair return AND express their values."
Stocks may be near record highs, but investors are getting out.
New data released Wednesday show investors have slashed their exposure to U.S. stocks in recent weeks, choosing instead to pile into bonds or simply hold cash.
Many are still fearful of another major drop in the stock market, and they aren't sure how to read the current conditions. It's a peculiar period in the market with tumbling small-cap stocks, diminished volatility and low interest MOREMatt Egan - May 22, 2014 6:37 AM ET
Citigroup (C) has axed another 11 employees over the embarrassing and costly fraud unearthed at the bank's Mexican subsidiary Banamex.
The terminations include four managing directors, two of whom are business heads in Mexico, Citi said in an internal memo to employees Wednesday.
Citi said its ongoing investigation has identified additional employees who could be at fault and expects that several will receive disciplinary action. The bank previously announced the firing of MOREMatt Egan - May 14, 2014 11:27 AM ET
Records are falling on Wall Street faster than you can say "high-frequency trading."
After crossing over the 1,500 line in March 2000, it took the broad index a long time -- 4,790 days -- to break through the 1,600 mark, according to S&P Dow Jones Indices. That's more than 13 years! No wonder that period is known as Wall Street's "Lost Decade."
But it's been a rapid climb since 2013.
Consider: When the MOREMatt Egan - May 14, 2014 8:16 AM ET
Sallie Krawcheck was one of the most powerful women on Wall Street before she left her job as president of wealth management at Bank of America (BAC) in 2009.
These days she's helping to promote diversity in finance through a network of 30,000 female professionals, known as 85 Broads. (Krawcheck plans to change the name, which refers to the address of Goldman Sachs' former headquarters.)
Speaking at an event hosted by the MOREBen Rooney - May 9, 2014 11:18 AM ET
Twitter is trending today on Wall Street, but for all the wrong reasons.
Shares of the social media site tumbled to a new low Tuesday, the first day that company insiders were allowed to sell the stock following the company's initial public offering.
The stock dropped 18%, sinking below $32 a share for the first time since Twitter (TWTR) began trading last November.
The sell-off comes at the end of a six-month "lock-up" MOREBen Rooney - May 6, 2014 4:12 PM ET
Spring break means different things to different people.
For kids, it's the Easter Bunny. For college students, a Mexican booze cruise.
But for many overworked Wall Streeters, it may just be a good book.
"I'm sitting here reading about finance 12 hours a day, so that's the last thing I want to pick up when I go home," said David Lutz, head of exchange traded fund trading at Stifel Nicolaus in Baltimore, Maryland.
About three years ago, Lutz was MOREJesse Solomon - Apr 18, 2014 7:00 AM ET
It should be another good year for the stock market. Not spectacular, but positive.
That's the general consensus among the investment strategists CNNMoney polled in a recent survey. See the full results here.
Of course, some were more bullish than others, and one was downright bearish.
Gary Flam, a portfolio manager at Bel Air Investment Advisors, had the lowest target for the S&P 500 among the 26 investment professionals in CNNMoney's survey. He MOREBen Rooney - Apr 8, 2014 8:38 AM ET
Stocks may be back near all-time highs, but traders were barely paying attention to the market Friday afternoon.
They took a break and turned their attention to T.J. Oshie and the rest of the U.S. men's Olympic hockey team, as they faced off against Canada in the semi-finals. Though the game resulted in a 1-0 victory for the Canadians, Americans were hopeful that Team U.S.A. would defeat its biggest rival.
The teams MOREHibah Yousuf - Feb 21, 2014 3:15 PM ET
Tesla shares (TSLA) made a run at record highs early Friday in a burst of optimism following an upgrade by Deutsche Bank.
But the stock struggled to hold the $130 level as the morning wore on, sparking a debate on StockTwits over how much the electric car maker is worth.
The sky's the limit, say the bulls.
$TSLA so the only question is... all time high before of after lunch? MORE
|Katie Couric takes responsibility for 'misleading' part of gun violence doc May 31|
|Zurich Insurance's ex-CEO Martin Senn commits suicide|
|'X-Men' takes top spot as 'Alice' flops at Memorial Day box office|
|The company behind 'American Idol' has filed for bankruptcy|
|Striking Verizon workers score raise and bonuses|