Women Underrepresented in Trading, Despite Being More Successful Than Men

More and more women are turning to the stock markets, and in some cases very successfully, as can be seen in a new infographic from Kryptoszene. But it is still premature to describe women’s and men’s interest in the world of finance as equivalent. The share of women among active traders is only about 15%.

More Careful and With a More Sustainable Focus

But why is this the case? Women often engage less with finances and tend to regret it later. In the new UBS Womans Wealth Study 2021, a large proportion of the women surveyed admitted that they would advise their younger selves to start thinking about retirement provision and financial planning earlier. In a relationship, one should also adopt an equal approach to housekeeping, as well as making budget plans.

Werbung

Many of these wealthy women envisage using their assets to combat climate change. In practice, this might look like investing in green shares or in large sustainability-related ETFs, for example.

The differences between men and women in terms of investment behaviour are not limited to interest alone. They also have different preferences when it comes to selecting a financial product. Women tend to opt for funds or ETFs more often than men, which could be described as somewhat more cautious investment behaviour.

Women Achieve Higher Returns

In contrast, men tend to be more willing to take risks, turning more often than women to individual assets such as stocks. But which stocks to go for? In this respect German men and women are largely in agreement: the most popular stocks among both sexes are those in Deutsche Telekom. Daimler is the second most popular stock for both men and women.

Women’s somewhat more cautious investment behaviour appears to pay off. In 2019, a study by ING Germany concluded that women’s average returns are 0.6% higher than those of men.

Does this make women better investors? There is of course no general answer to this question. However, it ought to be worthwhile for the majority of women to familiarise themselves more intimately with financial products. Firstly, so that they don’t later regret not having done so sooner. And secondly because while women are still underrepresented in the financial world, they are on average marginally more successful than men.

!function(e,i,n,s){var t=”InfogramEmbeds”,d=e.getElementsByTagName(“script”)[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement(“script”);o.async=1,o.id=n,o.src=”https://e.infogram.com/js/dist/embed-loader-min.js”,d.parentNode.insertBefore(o,d)}}(document,0,”infogram-async”);