It is not about a single study or random statistic. Similar conclusions appear in analyses covering thousands, even millions of investment accounts. It is therefore worth checking where this advantage comes from and what lessons both men and women can learn from it.
From this article you will learn
- whether women actually invest better than men,
- why excessive trading hurts performance,
- how emotions affect investor behavior during market downturns,
- why too much caution can also be costly,
- how diversification and automation help invest more effectively.
Do women actually invest better than men?
One of the first and often cited studies appeared in the article “Boys Will Be Boys” by Brad Barber and Terrance Odean. The authors analyzed 35,000 brokerage accounts to examine how much excessive activity lowers net investment returns. It is about how heavily commissions and fees affect the final outcome.
The results are quite interesting, as they show that men trade 45% more often than women. Excessive activity lowered their net results on average by 2.65 percentage points. For women it was 1.72 percentage points.
A reasonable question may arise: did better investment choices compensate for those costs? Today transaction costs are much lower. It is therefore worth looking at newer studies as well.
Further data confirm the advantage of women
Fidelity Investments analyzed over 5 million accounts from 2011-2021. Women achieved on average higher returns by 0.4 percentage points per year than men. This may seem small, but over the long term even small advantages matter. It is due to compound interest.
The Warwick Business School analysis of 2,800 investors showed an even larger difference. Women outperformed men by 1.8 percentage points per year.
Meanwhile, the Wells Fargo Advisors report describing over 50,000 accounts from 2018-2024 highlighted another factor. Women took on 13% less risk on average to achieve the same return as men.
Women also check their investment status less often. According to a FinanceBuzz survey, 41% of women do so at least once a week. For men it is 60%.
Why do women invest more effectively?
Male pride and excessive trading
The cited studies show that excessive confidence among men leads to more trades and worse results.
More trades mean not only higher fees. Each subsequent decision is an opportunity to make a mistake, succumb to emotions, and chase the next opportunity. Psychology also has the concept of decision fatigue. With each subsequent decision the quality of our choices can decline.
Women are less likely to fall into this trap. They more often stick to a plan, speculate less, and approach investing with a long‑term goal in mind. As a result they less often let emotions take control of the portfolio.
Women more often choose ready-made investment solutions
Women also more often use advisors and tools that simplify investing. This also applies to robo‑advisors.
Although men still dominate the investment market, the proportions among Port clients look different. Women make up the majority of clients.
Our client data also show differences in choosing specific solutions. Women more often choose Custom Portfolios, i.e., ready, globally diversified portfolios tailored to the investor profile. Men more often opt for Own and Thematic Strategies, which allow building a portfolio and selecting specific instruments on their own.
This does not mean that one solution is always better than the other. It simply shows a clear difference in approach. Women more often rely on automation. Men more often want to keep a hand on the pulse.
Women better withstand market downturns
One of the most important factors affecting long‑term investment results is emotions. The key is how we behave during large market declines. Women also have an advantage here.
Fidelity reported that 51% of women declare they keep investments during market downturns. For men it is 43%. UBS experts noted that women sell stocks less often than men and even during broad declines are about 25% less likely to withdraw from investments.
They also change their risk profile less often under emotional influence. This helps them avoid the classic mistake of buying high and selling low.
Men more often follow headlines and trendy assets. They more easily fall victim to FOMO. The risk then comes not from strategy but from the need to prove that this time we are right.
Women also have much to improve
Although studies show that women on average achieve better investment results, it is worth looking at the topic more broadly. The cited data refer to women who have already decided to enter the investment world. They do not include those who still keep away from the market. The picture is less favorable for women here.
Women often say they save, but investing and real wealth accumulation do not always follow. It often ends up in cash, deposit or savings account. Men usually have less resistance to taking risks and more often enter the market.
Inflation does not forgive inactivity
Unfortunately, money that sits in a folder or in a low‑interest bank account loses value due to inflation. A conservative portfolio may look safe because its nominal value does not fluctuate and large declines do not appear. However, in the long term the real value of funds can drop significantly.
Therefore it is worth protecting your savings from inflation and entering the world of passive investing. The negative impact of inflation is illustrated by the following chart. It shows the real decline in the value of cash and funds held in deposits compared with stock market returns from 2015–2025.
While cash lost more than a third of its value, the stock market doubled the purchasing power of capital. And that already after accounting for inflation and capital gains tax.
This is an important caveat. Stocks do not grow linearly. In exchange for higher potential returns you must accept volatility and investment risk. The alternative is not the absence of risk. Holding money only in cash also carries risk, just less visible.
In this one issue women should take a cue from men and not be afraid to invest. Especially since they often do not appreciate their own skills. The UBS report “Women and Investing” shows that only 9% of women believe they can achieve better investment results than men. Dear ladies, a little more faith in your own abilities.
How to invest effectively regardless of gender?
From the studies cited here you can draw several lessons about what characterizes an effective investor and how to invest effectively.
Limit the number of decisions
Higher activity in the market does not mean better results. Each subsequent transaction is another chance to make a costly mistake. Investing is about maximizing the probability of success. This does not mean the portfolio composition must remain unchanged for life. Over time the proportions of stocks and bonds in the portfolio naturally change. Your financial situation, investment horizon, or acceptable risk level may also change. Portfolio composition changes make sense primarily when they stem from strategy, not from a fleeting market mood.
For many investors the most effective approach is regular investing in a passive way. Of course the internet is full of stories of speculators who achieved spectacular success. However, for each of them there are many who suffered catastrophic failure and the world remains silent about them. Don’t be one of them.
Don’t react to every headline
Tracking macroeconomic data, geopolitical events, and market conditions helps better understand the investment environment. It does not mean you must immediately rebuild your portfolio after every new piece of information.
It is especially easy to make this mistake during sharp declines. Emotions then suggest we should do something to limit losses. Often the best reaction is no reaction.
Diversify your investment portfolio
Investing only in one market, sector or asset type can at first look like a great strategy. Especially when we happen to hit a strong growth trend. The problem arises after it reverses. What once drove results can quickly become the biggest source of losses.
Therefore it is worth diversifying capital across different asset classes and world regions. Such a portfolio can be built yourself or you can use ready solutions, such as globally diversified Custom Portfolios offered by Port.
Automate investing
Regular contributions, a pre‑set plan and automatic rebalancing available in Port help reduce the influence of emotions on investing.
Automation makes regular investing easier. Just set a standing transfer order in your bank to the investment account at Port. This way contributions are made automatically and you do not have to decide each month whether it is a good time to buy.
This is important because regular investing is a more sensible approach than trying to catch dips. The perfect sense of timing sounds attractive, but in practice it is very difficult. It is much easier to stick to a plan and let time do its job.
Accept that effective investing is boring
If your life lacks emotions, go to an amusement park. Your portfolio should not be the source of excitement. The fewer emotions in investing, the greater the chance of success.
Of course you cannot completely ignore large market declines. Especially when you are just starting. That is why it is worth knowing how our emotions work and how to react when everyone around is panicking.
The good news is that the longer we are in the market, the less impact market declines have on us. Over time investing becomes increasingly boring. And that is the point.
Summary
Do women invest better than men? If we consider people who already invest, the answer is yes. Women achieve on average better results. They trade less, stick to a plan more often, and better withstand market downturns. If we look at society as a whole, the picture is no longer so clear. Women still invest less often. And not investing means agreeing to let inflation slowly gnaw away the value of savings.
Both sides can draw an important lesson from these studies. Men should learn from women patience, acting according to plan, and limiting the number of trades. Women should, on the other hand, more often take advantage of market opportunities and have more faith in their own abilities.
