Why women are better investors than men

Sallie Krawcheck joined TheStreet to discuss how women invest.

Transcript

00:00 What information should women be sharing with each other?

00:02 Is that an important thing that we're missing in our community?

00:05 Yes, yes, because money is so taboo for us as women.

00:10 We receive so many negative messages around money from the press that's aimed at us about

00:17 how financial planning is really, really hard and you're spending too much on the latte

00:24 and on the facial and on the manicure and on the pedicure and on the shoes and on the

00:28 da da da.

00:29 And so we have these messages that come to us which are not positive.

00:33 Men get all these positive, affirmative messages around growth and making money, etc.

00:38 And so, you know, it's sort of hard to believe, but money is a subject that is more taboo

00:44 than sex, that women are much more likely to talk about money than they are to talk

00:49 about sex and actually literally prefer talking about their own death than money.

00:56 The research has always said that women are better investors than men, better risk adjusted

01:01 returns than men.

01:02 And there's some research that showed it's 40 basis points a year and you've seen others

01:06 that showed that it's more.

01:07 But it's a not insignificant number and it's been true of women hedge fund managers, women

01:14 mutual fund managers, women individual investors.

01:17 And it primarily comes down to women tend to see the plan and they tend to stick to

01:22 the plan.

01:23 And quite honestly, women tend not to panic as much as men do when markets are tough.

01:29 Women tend not to check their accounts as much.

01:31 And when you're not checking your account as much, you're less likely to feel that itch

01:35 of, you know, the markets are doing this, I should do something and save on fees as

01:40 well.

01:41 So we have seen that at Ellevest, you know, during the tough times of the pandemic, during

01:47 the tough market of last year and into the first part of this year, we had positive flows

01:52 every week in our digital offering.

01:55 And that was women who had set up recurring deposits into their accounts and just kept

01:59 them, you know, kept them going.

02:01 So, you know, we saw this while I don't have to tell you mutual fund and ETFs were in significant

02:07 outflows over the course of the past year, year and a half.

02:09 [End of Audio] Duration: 3 minutes and 40 seconds

02:10 www.Ellelest.com, No Hassle Returns, Satisfaction Guaranteed, Since 2001, 800-897-7175