Investing isn’t just about numbers—it’s about behavior. While financial markets reward discipline and patience, few investors consistently apply these traits. Research increasingly shows that women, on average, exhibit investing habits that deliver stronger long-term results. By understanding and adopting these behaviors—such as steady decision-making, consistent contributions, and mindful risk management—any investor can improve portfolio performance over time.
The key isn’t gender; it’s mindset. Women’s investing success stems from habits that emphasize thoughtful strategy over reaction, patience over prediction, and balance over boldness. These principles align with what modern portfolio theory and behavioral finance both advocate: long-term consistency and emotional control. Learning from these patterns can help investors of any background enhance returns, reduce costly mistakes, and achieve greater financial confidence.
Key Insights
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Women investors tend to outperform men over the long term.
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Many women maintain a patient, goal-oriented approach instead of reacting to short-term market shifts.
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This discipline helps minimize costs, reduce errors, and improve the compounding effect of returns.
Why a Steady Approach Wins
Extensive research backs up the idea that women’s investing habits lead to superior outcomes. A well-known 2001 University of California, Davis study analyzed more than 35,000 households and found that men’s frequent trading reduced their returns by 2.65 percentage points annually—compared to only 1.72 percentage points for women.
Further evidence from a 2018 Warwick Business School study showed that women outperformed men by an average of 1.8 percentage points per year. More recently, a 2025 Wells Fargo analysis of over 50,000 accounts (spanning 2018–2024) revealed that single women achieved higher risk-adjusted returns than single men, while joint accounts led by women delivered the best performance overall.
The reasons are partly behavioral. Women tend to approach investing with humility, thorough research, and a long-term mindset. “Women are less likely to see themselves as natural investors,” Hendershott explains, “so they often adopt a thoughtful, set-it-and-forget-it approach—choosing diversified funds and staying committed.”
Stephanie McCullough, founder of Sofia Financial, adds that women are often labeled as “risk-averse” when they are actually “risk-aware.” They prefer to fully understand their investments and the potential downsides before taking action. Once confident, they tend to stick to their plan rather than chase tips or market hype.
Men, on the other hand, are often socially rewarded for being decisive and taking quick action—traits that can lead to overtrading or attempts to time the market, both of which can erode long-term returns.
The Persistent Investment Gap
Despite women’s strong performance, the gender wealth gap remains significant. A 2023 Bank of America report found that the average 401(k) balance for men was roughly 50% higher than that of women. Similarly, the U.S. Department of Labor’s 2025 data showed that the median retirement account for women was around 40% smaller than that of men.
Several factors contribute to this disparity. Women often earn less, save later, and have less disposable income due to the gender pay gap and career interruptions. “These cultural and financial realities delay women’s ability to invest,” Hendershott notes.
Media coverage also plays a subtle role: financial content targeting women often emphasizes budgeting and saving, while articles aimed at men tend to focus on investing and wealth growth strategies.
Lessons for Both Genders
Successful investing doesn’t depend on gender, but on mindset and behavior. Both men and women can learn from each other’s strengths.
From women, men can learn patience, humility, and the value of staying invested. As Hendershott explains, “You don’t have to outsmart the market to build wealth.” Research consistently shows that women’s buy-and-hold approach and lower trading frequency generate stronger long-term results.
From men, women can take inspiration to start investing earlier, contribute consistently, and confidently take ownership of their financial future. “You don’t need permission to grow your wealth,” Hendershott emphasizes. “It’s not about predicting every market move—it’s about staying the course.”
The Bottom Line
The stock market remains one of the most powerful engines for building personal wealth. The most successful investors—regardless of gender—share a few essential habits: they invest for the long term, minimize unnecessary trading, manage costs efficiently, and stay aligned with their goals rather than market noise.
The data is clear: women’s investing behaviors—moderate risk-taking, long-term focus, and willingness to seek guidance—often lead to better results. Adopting these strategies can help any investor achieve greater financial resilience and improved returns over time.
Frequently Asked Questions
Q1: Why do women tend to outperform men in investing?
A1: Research shows women generally exhibit lower portfolio turnover, long-term consistency, and disciplined risk-taking. These habits reduce costly mistakes and allow compounding to work more effectively, resulting in better risk-adjusted returns over time.
Q2: Can men adopt women’s investing habits?
A2: Absolutely. The key is mindset: patience, consistent contributions, careful research, and avoiding emotional decisions. Men who adopt these habits can improve their portfolio performance and reduce errors.
Q3: What specific habits should investors adopt from women?
A3: Key habits include maintaining a long-term investment strategy, understanding the risks of each investment, limiting unnecessary trading, and seeking professional guidance when needed.
Q4: Does adopting these habits guarantee higher returns?
A4: No investment strategy guarantees returns. However, adopting disciplined habits like those observed in women investors increases the likelihood of consistent, long-term growth and reduces costly mistakes.
Q5: How can I start applying these habits to my portfolio today?
A5: Start by setting clear financial goals, choosing diversified investment options like index or target-date funds, automating contributions, and reviewing your portfolio periodically rather than reacting to market swings.