INTERNATIONAL WOMEN’S DAY: TRADE REPUBLIC'S DATA SHOWS THAT WOMEN COULD TEACH MEN HOW TO INVEST
- In 2022, Trade Republic's female customer base outperformed men on capital markets.
- They achieved so by investing for the long-term: 61% less frequently and using diversified instruments such as ETFs 34% more.
- Nonetheless, women invested 45% less money on average. Cautiousness or another sad reflection of income inequality?
Luxembourg, March 08, 2023. Just in time for International Women's Day, Trade Republic, Europe's largest savings platform, provides an insight into the saving and investing behavior of women in Europe. During a difficult market environment marked by high inflation, high interest rates and recessionary concerns, on average women have been more successful than men at investing. They are typically more responsible, using more ETFs and trading less frequently.
For International Women's Day, Trade Republic analyzed its European customer base data in 2022, with a particular focus on women's investment choices during the turbulent market period. While the S&P 500 ended 2021 with a positive performance of about 27%, it plummeted by almost 19% the following year, demanding strong nerves and stamina from savers. Interestingly, in 2022 women performed better than men in almost all the areas analyzed and set the example with better risk management.
Trade Republic data shows that women were more likely to turn a profit than their male counterparts. Women typically traded 61% less frequently and had 34% more ETFs in their portfolios, showing investing maturity and a less impulsive approach to market movements.
Women also showed less appetite for volatile assets such as cryptocurrencies and typically left more money in cash (+18%) than men, showing a more conservative approach to generating returns. This trend is even more pronounced among young female investors (18 to 25 years old) and it accelerated in 2023 with the introduction by Trade Republic of a 2% annual interest rate on uninvested cash.
Within Trade Republic's global customer base, women are profitable more often than men: Germany, Austria and France lead the way, whereas in Spain men are successful more often.
"Based on our data, we can clearly see that even in challenging times, which have been characterized by rising interest rates and recession concerns, women are not only continuing to save consistently, but are expanding their savings activities even further," says Matthias Baccino, Country Manager of Trade Republic for France and Benelux. "In particular, they have significantly increased their share of ETFs and are focusing on increasing their savings over the long term. It shows that women are acting with greater confidence and common sense to navigate uncertainty in the capital markets."
In 2022, women invested 45% less money than men on average, Trade Republic's data shows. This could be the result of a more cautious approach to turbulent markets, or more likely the alarming reflection of income inequality.
Trade Republic's figures show that a new generation of female savers has emerged in France in the past few years. They invest in a more diversified and sustainable way than men, and are more successful as a consequence of that.
Trade Republic's mission is to facilitate wealth generation and retirement security for everyone with safe, easy and commission-free access to capital markets, but the question remains open: are we as a society doing enough to create equal opportunities for financial success?
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ABOUT TRADE REPUBLIC
Trade Republic is on a mission to set millions of Europeans up for wealth creation with secure, easy and commission-free access to capital markets. With over one million customers, Trade Republic is already the home screen app for many Europeans to manage their wealth. It offers investing in savings plans, fractional investing and ETFs as well as derivatives or crypto. Trade Republic is a technology company supervised by Bundesbank and BaFin. As Europe’s largest savings platform, Trade Republic has received investments by Accel, Peter Thiel‘s Founders Fund, Ontario Teachers‘, Sequoia and TCV. The company based in Berlin was founded in 2015 by Christian Hecker, Thomas Pischke, and Marco Cancellieri.