Mar 28, 2021

Question of the Day [Women's History Month]: How much more successful are women than men when it comes to investing rate of return?

Note: This question was updated in 2023

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Answer: Estimated at a better rate of return of up to 1.2%!

[S&P 500 geometric average for last 50 years is 10.65%]

Questions:

  1. How does a rate of return difference as little as 1% impact investments over time?
  2. What are some best practices when it comes to investing?
  3. If you were going to invest, what strategies and types of investments would you focus on? Why?

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (Investors.com):

"Several studies back up that claim that women investing in stocks are better at it than men. One of the more commonly cited ones comes from Fidelity Investments, which analyzed over 8 million client accounts and found that women outperform men by 0.4%.

At first glance this may appear to be a minor difference, but can have a significant impact over time," said the study, which was published in 2017.

A Barclays-sponsored Warwick Business School study found an even greater gender-based outperformance: 1.2%."

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Check out the NGPF Investing Unit to supplement this Question of the Day!

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About the Author

Mason Butts

After graduating from UCLA with a Master's in Education, Mason spent 5 years as a science educator in a South Los Angeles public high school. He is committed to supporting the holistic growth of all students and empowering them to live a life of relational, academic, and financial success. Now settled in the Bay Area, Mason enjoys facilitating professional developments and partnering with educators as they prepare students for a bright financial future. When Mason is not building curriculum or planning a training, he can be found cycling, trying new foods, and exploring the outdoors.

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