By Michael Henley, CFP®, CPWA®, CRPC®, RMA®

The world of finance can appear to be dominated by men. And traditionally, men have indeed had more of a presence than women. However, when investing, women actually outperform men. In fact, they may gain between 0.4% and 1.8% more on an annual basis.

If that surprises you, consider that research has shown for years that women’s annual investment returns outpace those of men. Researchers point to specific differences between the investing behaviors of men and women (patience, discipline, risk awareness, etc.) that give women an edge.

This advantage has held as the growing number of working women, especially those rising to executive positions, take charge of their finances.

One of the biggest advantages women have in investing is emotional control, which plays an important role when it comes to riding out market volatility.

Emotional Control

Emotional reactions to market fluctuations can cloud judgment and lead to impulsive decisions, often resulting in missed opportunities or unnecessary losses. Staying level-headed during market swings allows investors to stick to their strategy, instead of making short-term moves that can derail long-term goals.

Studies reveal that women often avoid emotion-driven investing decisions, while men tend to be more reactive to market volatility. A 2024 Fidelity study shows that 51% of women are more likely to stick to their investing approach and ride out market volatility compared to just 43% of men.

Women also tend not to be wooed by the latest investment fads. Consider the rise of “meme stocks” or social media-fueled day trading trends. These quick-hit opportunities can be enticing but often lack a foundation in long-term fundamentals. Research suggests women are more likely to stay focused on proven strategies, rather than chasing hype.

A More Balanced Perspective

The general approach many women take to investing plays a significant role in their outperforming their male counterparts. Women tend to be more cautious and risk-aware. A study by Unbiased found that 72% of women sidestepped risky equity investments compared to 59% of men.

This disciplined approach to avoiding high-risk, high-reward bets allows women to build more diversified portfolios, something that is important for both growing wealth and protecting it over the long term. 

The Power of Patience

Focusing on the long term is one of the most important drivers of investing success. Patience, consistency, and a steady approach often lead to stronger outcomes than chasing short-term gains. Staying grounded in a long-term strategy can help investors sidestep unnecessary risks and make more thoughtful decisions along the way. 

Unbiased reported that, over the 47 years between 1975 and 2022, the S&P 500 index had more than three times as many years of gains as years of losses, highlighting that a long-term “buy and hold” strategy is often the smartest approach to investing.

Two studies highlighted that women tend to trade less frequently than men. According to the Warwick Business School in the U.K., men trade an average of 13 times per year, while women trade only nine times. Additionally, research by Hargreaves Lansdown found that women trade shares 49% less often than men.

Engagement and Financial Literacy

The number of women putting money into the stock market is climbing. A Fidelity survey found that 71% of women were investing in 2024, an 18% jump from the year before.

This growth in women investors reflects a broader trend of increasing financial literacy. While women are more likely than men to acknowledge their lack of knowledge about investing, they also tend to be more proactive in seeking out information to improve their understanding, according to the same Fidelity study.

At Brandywine Oak, we work with many clients who take a hands-on approach to their finances, viewing themselves as the “CFO” of their households. These proactive clients understand the importance of staying ahead of financial decisions and managing their wealth strategically. Much like the thoughtful, patient approach that women often take in investing, these clients know that maintaining control of their financial future requires discipline, knowledge, and a long-term vision.

Find a Wealth Advisor With Brandywine Oak Private Wealth

Over the past 20 years, women have increasingly taken control of their financial futures, building businesses and growing wealth through smart investments. In 2022, women held 33% of the world’s wealth, with half of that residing in the United States. By combining your natural strengths with a sound investment strategy, you can carve out a significant place in that growing pool of wealth.

At Brandywine Oak Private Wealth, more than 50% of our team are female financial professionals. This diverse and skilled team is committed to empowering women with the knowledge and guidance they need to make confident, informed investment decisions. 

To schedule a meeting to find out how we can assist you on your financial journey, call (484) 785-0050, email contact@brandywineoak.com, or get started online now. And if you’re curious about the experiences of our clients, take a moment to visit our client testimonials page to read their stories.

About Michael

Michael Henley is the Founder and CEO of Brandywine Oak Private Wealth, a private wealth management and registered independent advisory firm headquartered in Kennett Square, PA. Over the course of his 20-year career, Michael has been dedicated to helping wealthy individuals and families plan and manage all aspects of their finances and investments. With a passion for helping others look behind the curtain and understand the complex world of finance, he develops close relationships with clients as he helps them progress toward their financial goals. Michael loves to provide clarity and alleviate financial anxiety, help prevent families from overpaying in taxes, and give wealthy families permission to enjoy their life savings. He says, “No work is more gratifying than giving families outcomes to what matters most to them.”

Michael holds the CERTIFIED FINANCIAL PLANNER®, Certified Private Wealth Advisor®, Chartered Retirement Planning Counselor℠, and Retirement Management Advisor® designations. Residing in Chadds Ford, PA, with his two children, he enjoys outdoor activities, particularly maintaining trails on his property, hiking with his dogs, and being an actively engaged dad, always taking his kids everywhere. Michael’s latest hobby is tennis and he recently started ice skating to join his daughter Savannah. He can also be found moving logs to the firepit with his son Maverick on the tractor. Michael serves on the board of United Way of Southern Chester County and loves mentoring younger advisors. Great mentors helped him succeed, and he’s convinced that every leader needs to both have mentors and be a mentor. To learn more about Michael, connect with him on LinkedIn.

Brandywine Oak Private Wealth is a registered investment adviser. Registration does not imply a certain level of skill or training. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.