Women outperform men in investment returns according to studies

Financial research indicates that women consistently achieve higher investment returns than men across various markets and time periods. A 2021 analysis by Fidelity Investments of over 5 million customer accounts showed that women earned, on average, 0.4 percentage points more in annual returns than men.

Additionally, a study by Warwick Business School found that women outperformed the British FTSE 100 index by 1.8 percent annually, while men performed below that benchmark. Despite these higher returns, women generally hold less invested assets, tend to start investing later, and invest less frequently.

Experts suggest this performance advantage is linked to specific behaviors, such as trading less often. Frequent buying and selling can diminish returns due to transaction costs, whereas women's tendency to trade less frequently helps preserve capital.