Women are better than men at investing – data shows
By Karthik Muthuswamy
Women made more than twice as much as men on their investments in Avanza bank during the one-year period to February 2022, according to a report from Avanza. The data is from 1.7 million customers of Avanza, the largest stockbroker and brokerage firm in Sweden.
Another survey by SEB, one of the “big four” banks of Sweden, showed that in 10 of the past 12 years, women’s net capital gains have been higher than men’s.
Women earned more than men in all age groups between 18-90 years, during the one-year period to February 2022. On average, women made a 10% median Return on Investment while men made 4%.
Women in the age group 18-30 earned six times more than men.
While women are better at investing, only 38% of Avanza’s investors are women – and they own just around a quarter of the total capital in Avanza.
On average, men have more capital than women already when they are 18. They reach 100k when they are 23 years old, while women reach that at 28, according to newer data from September 2022.
The capital for men and women increases with age — and so does the gap between them.
An average man in his 70’s has over a million sek. They own two to three times more than women in the respective age.
Three reasons why women are better at investing
Moa Langemark, an Analyst at Avanza said:
- Women invest more in investment funds and men more in stocks. People who invest more in funds earn more.
- Women have a more passive strategy and make less risky investments. They have historically avoided panic-selling during stock market crash events.
- Women tend to invest in companies they know well and whose products and services they use themselves.
Moa adds that women, on average, save less than men every month which is one of the factors as to why women have less capital.
Average monthly savings as of Feb 2022 for women: 2100 SEK and men: 2700 SEK.
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Method and data
Data from Avanza’s reports are linked in the respective charts. I have used averages to compare the difference between men and women. This is similar when median is used.
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