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Female investors make their own choices

Focus on medical, healthy and nice

Written by Ronald Veerman | 5 minutes
TUE 12-05-2020

Female investors make different choices on the stock exchange than men. They trade less frequently, are less active with derivatives, and consciously choose for certain shares. And often also achieve a better return.

Although most private investors are still men, many women do appear to be active on the stock exchange. “There is still an image that investing is a male thing. But a quarter of our clients are women, ”says director Saskia Klep of BinckBank Holland.

BinckBank studied more than 200,000 portfolios of men and women and found a number of interesting differences. In this article, you will read more about typical preferences of women and men when it comes to stocks, and the differences in the investing behavior, and the impact this may have on the final return.

Beer and soccer versus chocolate and beauty
Just like men, women also invest a large part of their assets in the larger AEX companies, with both Royal Dutch Shell as the largest investment. However, it is remarkable that funds such as Unilever, DSM, and Philips have relatively more investments from women, while ING, Aegon, and Galapagos, among others, are shares preferred by men.

In a small part of the companies in which you can invest, the difference is even remarkably large, and in some cases, there is a - weighted - deviation of more than 100 percent.

For example, funds such as Ajax and beer group AB Inbev score high among men, as do car names such as Volkswagen, NIO, and Ferrari. Among female investors, medical names such as Novartis and Astra Zenica, but also Mondelez chocolate and L'Oreal products, are more popular.

Below are the 20 stocks/funds on the basis of an analysis of 500 of the most popular investments among BinckBank customers.

POPULAIR with women

POPULAIR with men

Accell

AB InBev

Adidas

AFC Ajax

Adobe

Beter Bed

Astrazeneca

Ferrari

Grandvision

IEX Group

L’Oreal

Just Eat Take Away

McDonalds

Microsoft

Mondelez

NIO

Novartis

Sonos

SnowWorld

Volkswagen


Less transactions and more careful/Passive
In previous BinckBank studies, we assessed the trading behaviors of male and female BinckBank clients. It was found that women investors are significantly less active on the stock market than their male counterpart, and trade less frequently. On average men execute 25%  more orders than women.

Women are also more cautious investors, according to their investment profile at BinckBank. A larger proportion of female investors can be qualified as cautious/defensive investors, while male investors more often have a (very) speculative profile.

But is a woman a better investor than a man?
The big question is, of course, whether women, with their more  defensive portfolios, and more passive trading approach, in the end receive a higher return on their investments. Or are they missing profit?

This is difficult to measure on the basis of continuously changing portfolios and costs incurred for the purchase and sale. However, various scientists have conducted studies into this, which usually show that women achieve slightly higher returns on average due to their  investment behavior.

A recent and widely cited study comes from the British Warwick University. According to this study, which looked at nearly three thousand portfolios over three years, women achieve an average of 1.8 percent more return than men each year. The difference was partly due to the fact that men more often choose speculative shares and women often have a longer investment horizon.

Author

Ronald Veerman

Ronald Veerman is a financial expert at BinckBank. Before that he worked as a financial journalist in Den Haag, Brussel and Amsterdam and as chief editor of the main financial newspaper De Financiële Telegraaf (DFT).

 

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