Boss Investors: Women Continue To Outperform Men When It Comes To Investing

Updated: October 20, 2021
Illustration of women jumping
Illustration: The Money Manual

We’ve written pretty extensively about women not investing as much as men. It’s a complicated issue that involves a whole host of issues including the gender wage gap, the investing boys club, gender norms, and so many other things.

What’s so interesting about this is that women continue to outperform men when they do invest — a point that has been backed up yet again by a new survey from Fidelity. There is more good news that comes out of this survey, too: women are more interested in learning about investing than ever.

According to the report, on average, women investors achieve positive returns and surpass men by .4%. Fidelity got to this number by analyzing the annual performance of 5.2 million accounts from January 2011 to December 2020.

The evidence suggests that women tend to outperform men while investing because they better employ the buy-and-hold strategy of investing, which for the average investor is usually the best route.

“It demonstrates that women are great investors, and when they take action, it can work out quite well for them,” Lorna Kapusta, head of women investors and customer engagement at Fidelity said.

Good News For Women Investors

Women are increasingly investing beyond just their retirement accounts, the survey also found, which is another piece of good news, proving that they are more seriously trying to build wealth, and no longer doing just the bare minimum.

Two-thirds of the survey’s respondents are now investing extra savings outside of emergency funds, a 50% increase since 2018.

The pandemic, which was certainly a financial stress, also proved to be a wake-up call for a lot of women. Fidelity saw a 43% year-over-year increase in women opening new Fidelity investment accounts, and a 37% uptick in women reaching out for investing guidance. Those numbers are similar to those seen by other investing platforms like Robinhood over the last year.

Per the survey, 9 in 10 women also want to take proactive steps in the next 12 months when it comes to investing, and 62% want to boost their knowledge of investing and financial planning.   

It’s Not Just A Rosy Picture For Women Investing

While women are making strides when it comes to closing the investing gap, there is still plenty of room for improvement. Per the survey, only one-third of women feel confident in their ability to make financial decisions. The study reported that 70% of women believe they need to know more about picking individual stocks.

Hey, good news is still good news. We know our readers are already on the investing bandwagon so grab a friend, a parent, a neighbor and take them on the journey with you. Let’s close this investing gap once and for all.

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