Men vs Women v10 - The SigFig Blog

Gender and Investing:
Let’s Set the Record Straight
•
Do male or female investors earn higher returns?
•
Are men or women more optimistic about 2015?
•
Which stocks and brokerages do they prefer?
•
Where are women millionaires most likely to live?
All data in this report is aggregated and anonymized from investors who sync and track their portfolios with SigFig.
Learn more at www.sigfig.com or email insights@sigfig.com. 1
Women investors beat men by 12%.
2014 Median Net Returns
4.7%
4.7%
4.1%
+12%
5.7%
With $100,000 to invest
5.1%and assuming
this performance trend continued for
30 years, a woman would earn
$58,000 more than a man.
0.0%
Women
Men
Women also beat men on a risk-adjusted
basis as the median female portfolio has
74% in equities vs 75% for men.
Anonymized data from investors who track their portfolios with SigFig. Returns are net of fees
and include dividends. Time period of analysis is 12 months ending 1/2/2015.
2
Men were also 25% more likely than women to
lose money in the market.
2014 Net Returns
20.4%
Women
25.8%
Men
64.6%
58.5%
0%
14.9%
15.7%
100%
Lost Money
Below S&P500, but didn’t lose money
Beat S&P500
Anonymized data from investors who track their portfolios with SigFig. Returns are net of fees
and include dividends. Time period of analysis is 12 months ending 1/2/2015.
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How? One possible cause is higher portfolio turnover.
Men churn their portfolios 50% more than women.
2014 Median Portfolio Turnover
14.0%
14%
In 2014, frequent traders—investors
who have annual portfolio turnover
of 100% or more—had median net
returns of just 0.1%, compared with
4.7% for everyone else.
9%
0.0%
Women
Men
Anonymized data from investors who track their portfolios with SigFig. Returns are net of fees
and include dividends. Time period of analysis is 12 months ending 1/2/2015.
4
In fact, men are more likely than women to have
brokerages that end with “trade”.
1.2x
1.1x
1.1x
1x
More Likely Women
1.2x
More Likely Men
Etrade
Ameritrade
Fidelity
Anonymized data from investors who track their portfolios with SigFig.
Selected institutions only. More data available upon request.
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Despite this, men are 1.5X more confident that
they will beat the market in 2015.
Women
Men
Expect to do better
than the market
Expect to do better
than the market
11%
17%
15% of women actually
outperformed the S&P
500 in 2014
89%
Expect to do worse or
as well as the market
16% of men actually
outperformed the
S&P 500 in 2014
83%
Expect to do worse or
as well as the market
2015 Sentiment Survey data conducted with 800 randomly sampled investors nationwide.
6
Women and men tend to gravitate towards
certain stocks—but not always in ways we expect.
1.4x
1.3x
1.2x
1.1x
1x
More Likely Women
1.1x
1.2x
1.3x
1.4x
More Likely Men
Tesla
Amazon
Anonymized data from investors who track their portfolios with SigFig.
Each stock has at least 500 investors represented.
Selected tickers only. More data available upon request.
7
Women millionaires are 70% more likely to live
in New York vs California.
31%
In California, women are 1/3 less
likely to be millionaires
than men.
47%
In New York, women are 1/3 more
likely to be millionaires than men.
CA
NY
% Female investors who are millionaires
10%
17%
% Male investors who are millionaires
15%
13%
Anonymized data from investors who track their portfolios with SigFig.
Sample size is 4,000 investors from CA and NY who use the SigFig portfolio tracker.
Selected states shown. More data available upon request.
8
For both women and men, fund expense ratios
were negatively correlated with returns in 2014.
2014 Median Returns vs Expenses
Median Annual Returns
7%
Women
Men
0%
0.5%
1.0%
1.5%
2.0%
Fund Expense Ratio Bucket
Anonymized data from investors who track their portfolios with SigFig.
Fund expense ratios are for ETFs and Mutual Funds in 2014.
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Women tend to own more expensive funds than men. Older
investors pay much more in fund expenses than younger investors.
Median Fund Expense Ratio by Age Group
Median Fund Expense Ratio
0.8%
Retirees pay more than
2X in fund expenses
compared to Millennials.
If they paid at the same
rate, the median retiree
would save $900 a year.
Women
0.6%
Men
0.4%
0.2%
0%
30
40
50
60
70
80
Investor Age
Anonymized data from investors who track their portfolios with SigFig. Fund expense ratios are
for ETFs and Mutual Funds in 2014. $900 comes from paying 0.28% instead of 0.59% on
$300,000 in fund holdings, which is the median for investors in the over-55 age bracket.
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Men tend to invest more aggressively than
women—but not late in life.
Median % Portfolio in Equities by Age Group
% of Portfolio in Equities
90%
The average 25-year old woman
invests like a 35-year old man.
Women
The average 55-year old man
invests like a 65-year old woman.
Men
60%
30
40
50
60
70
80
Investor Age
Anonymized data from investors who track their portfolios with SigFig.
Equities include US, Developed, and Emerging Countries stocks.
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About SigFig
SigFig is the largest portfolio optimization platform in the world helping everyday investors track over $350B in
assets. Through partnerships with Fidelity, Schwab, and Ameritrade, we analyze, monitor and improve your
portfolio, or help build a new one. Using advanced algorithmic strategies, SigFig automatically balances and
diversifies your investments, while reducing risk and minimizing fees.
About this Report
The analysis in this report is based on data aggregated and anonymized from investors who have synced their
investment accounts on SigFig. Technical details are available upon request.
Contact Information
For more information, email [email protected] or call (415) 558-9611
Disclaimers
Past returns reflect performance of assets over the course of one calendar year from 1/3/2014 to 1/2/2015 unless otherwise noted. Data is based on aggregated
anonymized data representing SigFig users unless otherwise noted. Results are net of all management fees and expenses unless otherwise noted. Performance data
includes reinvestment of dividends and interest unless otherwise noted.
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