Female investors had better results than men in 2022, Trade Republic said on 8 March--International Women’s Day--after analysing the behaviour of their users. In other words: “Women can teach men how to invest,” the platform said in its statement. According to Trade Republic, women “tend to be more responsible, use more ETFs and trade less frequently” than men.
As the S&P 500 dove by 19% in 2022, investors needed to be more patient to deal with the risks. Women negotiated 61% less often than men and had 34% more ETFs in their investment portfolio, demonstrating a less impulsive and more mature approach to market fluctuations, said Trade Republic. They were also less attracted by volatile assets like cryptocurrencies and had a tendency to keep more liquidities (18%), especially young women between 18 and 25.
“Based on our data, we can clearly see that even in difficult times, characterised by rising interest rates and recessionary concerns, women are not only continuing to save consistently, but are further developing their savings activities,” said Matthias Baccino, national director of Trade Republic for France and Benelux, adding that women also focus on increasing their long-term savings.
However, women are not as represented on the scene as men. A study by online bank N26 showed that European women invest 29% less than European men. McKinsey & Company in September 2022 had also found that women investors were on the rise, but that as of 2020, men (in Western Europe) still held two-thirds of assets under management. Trade Republic noted this too, saying that in 2022, women invested 45% less than men. This was likely due to the existing gender wage gap, and to a lesser extent, their more careful approach to current turbulent market trends, said the trading platform.