It's only February, but women have already been identified as the better-investing gender this year. Find out why.
It’s only February, but women have already been identified as the better-investing gender in 2016.
Data compiled for CNBC by SigFig Wealth Management, an online-based investment adviser, found that women continue to earn better return rates on their investments compared with men.
SigFig’s data, which is based on a review of more than 50,000 accounts, shows that going into last week, the median women’s performance was -7.2 percent. The median man’s performance was -7.6 percent.
CNBC attributes this gender difference in 2016 — and in past years — to men trading more than women and therefore paying more in fees:
All that portfolio churn hurts the overall return of their portfolios.
So far this year, men have traded about 30 percent more than women, which CNBC reports continues a trend of men having about 1.5 times more portfolio turnover than women.
CNBC cites the stock market’s August tumble — during which the Dow Jones Industrial Average took a dive of more than 1,000 points, or 6.6 percent — as an illustration of why women investors beat men last year.
That market tumble prompted panic and, for some investors, selling. But it proved short-lived, with the stock market recovering those losses later in the year — so the investors who didn’t panic and didn’t trade were rewarded.
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