Fidelity’s 2021 Women and Investing Study shows that women edged out men when it comes to investment returns over the last decade.
After analyzing over 5 million customer accounts from 2011 to 2020, Fidelity calculated that women achieved slightly better results than men (0.4% higher returns per year) due to their disciplined and consistent investment approach.
That’s nothing new, writes Alicia Adamczyk, covering the Fidelity study for CNBC. First, women trade less than men. That helps them reduce investment expenses and makes them more likely to stick to their investment plan, less inclined to sell low or buy high based on emotion.
Women also tend to invest consistently, instead of trying to time the market.
That discipline pays off with better performance.
The Takeaway: Many women lack confidence in their investing skills. These latest results show they should take pride in what they’ve achieved. More women are venturing into investing, and opening accounts outside of the traditional workplace retirement accounts. For example, 71% of millennial women are now investing outside of retirement, making them the most engaged female demographic by age. Despite their lower self-confidence, many women excel at investing because they are in-tune with their own risk tolerance, investment style, and financial goals, and stay on track regardless of market noise.