Photo (cc) by Tax Credits
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.
What’s your take on the reported differences between men’s and women’s investing skills? Let us know what you think below or on our Facebook page.