Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 347

Women investor numbers grow but financial education still lags

International Women’s Day 2020 coincides with the release of the latest online investor research from Investment Trends, based on a survey of more than 13,000 Australians. So there is no better time to look at key trends in the retail investing space from the perspective of women investors.

Our latest research shows that women still make up only 18% of the 750,000 active online investors across Australia. But the good news is this gap is closing.

In recent years – and particularly through 2019 – the proportion of Australian women who began investing for the very first time grew substantially to 28% of that cohort. This is more than double the rate observed five-plus years ago, as shown in chart 1 below.

While more work needs to be done to lift the ratio of women investors, Australia is substantially ahead of established markets such as the UK (11% women, 89% male) and is drawing closer to the US (21% women, 79% male).

Improving investment knowledge

For women, knowledge and education are central to their investment journey.

Our research shows that women who invest have a strong desire to expand their knowledge and further educate themselves on investments and investing.

Women most often rely on their own research and company-produced reports as a foundation for making investment decisions - which is similar to their male counterparts.

But they are substantially more likely to collaborate and discuss ideas with their friends and family members (37% cite this vs 28% for males).

Women are also more likely to:

  • seek out the views of prominent investors and commentators (24% versus 22%)
  • listen to investment-related podcasts (19% vs 17%)
  • rely on investment-related online forums and blogs, with the Barefoot Investor a firm favourite (36% vs 19%).

The same is true for women who want to begin their investing journey in the next 12 months. This group – to a vastly higher extent than men – want to start by investing small amounts of money (52% vs 33%). And they are significantly more likely than men to want education, a good understanding of how to manage risk and the ability to share and learn from the experience of others (see chart 2).

It is no coincidence, then, that both in Australia and globally, women investors have increasingly embraced low entry cost products that rely largely on exchange-traded funds, such as microsavings apps and robo-advice services.

Investing globally and sustainably

Right across the Australian investor population, our research has tracked a growing investment demand in two areas:

  1. international markets
  2. environment, social and governance.

Currently, over half of the online investors surveyed say they invest in international assets in some shape or form, a proportion that is roughly similar across gender lines (50% for women and 55% for men).

But the propensity to add overseas investments to their portfolios is strongly linked to investing experience. The longer a person has been investing, the more likely they are to seek exposure to investments outside Australia.

Where our research does show a gender differential for overseas investing is in the investment vehicles used for overseas exposure.

Women are more likely than men to access international exposure through ETFs (55% vs 49%) instead of direct equities (36% vs 46%). In fact, the core benefits of ETFs – low cost, easy access to a diversified portfolio – resonate strongly with women irrespective of the fund’s underlying exposure.

On the ESG front, more than a third of Australian investors (36%) now say they have or will use ESG factors when selecting their investments. While men and women report this in equal proportions, women across every age group place greater emphasis on ethical, socially responsible and environmentally responsible factors (see chart 3).

But once again, women investors are almost twice as likely to feel they don’t know enough about responsible investing to get started (22% vs 12%).

Industry’s role in empowering female investors

Service providers and product manufacturers can help women align their investments to their values, goals and aspirations. But to do this they must deliver the products and tools to help start the investment journey as well as deepen the investing journey.

The theme of this year’s International Women’s Day is #EachforEqual, and financial equality remains central to this goal. It is crucial that the wealth management industry continues to empower women from all walks of life to take control of their financial wellbeing – young or old, wealthy or financially-challenged, self-reliant or requiring financial advice.

To make a positive difference, the entire wealth management ecosystem needs to focus on providing meaningful, engaging and networked self-education materials that help women start or deepen their investment journey.

 

Suzie Toohey is Global Head Client Service and Sales at Investment Trends.

 

  •   4 March 2020
  •      
  •   

 

Leave a Comment:

RELATED ARTICLES

Work still needed to close the financial gender gap

Four ways to reduce the generation blame game

How to become a rich old lady

banner

Most viewed in recent weeks

It’s time for LICs to die

A high-profile dividend cut and a prominent fund manager’s apology have reignited a long-running debate. If investors can access similar exposures more cheaply and efficiently elsewhere, what exactly is keeping LICs alive?

Testamentary trusts survived the trust tax. The drafting battle has just begun.

The fight over testamentary trusts looked settled. Then the draft legislation arrived. Hidden in a technical detail is a question that could force many families to rethink wills they thought were already future-proof.

The new capital gains tax trap for your portfolio

Investors have long accepted one portfolio rule without much question. A major tax shift could change that calculation entirely, forcing difficult trade-offs between risk, discipline and an overlooked cost lurking beneath.

The retirement scorecard: how many of these questions can you answer?

From the maths of retirement, estimating spending and picking the right asset allocation to survive a poor decade, here are the questions every retiree – current or future – should be able to answer for themselves.

How the typical Australian Family could save $844,350 in taxes

The value of a testamentary trust is not determined by wealth alone. Depending on circumstances, it can reduce the tax burden on inherited income, create efficiencies and help build intergenerational wealth.

The housing slide could become a crash

House prices are sliding across Australia, yet the most dangerous ingredient for a housing crash is still missing. If job losses surge amid growing economic risks, today's correction could become a historic property downturn.

Latest Updates

Testamentary trusts: Treasury has picked the wrong reading

A decades-old estate planning tool has survived one tax crackdown only to be caught by another. The surprise isn't who the reform is targeting, but who could end up paying the price for drafting choices made years ago.

Latest from Morningstar

Does an American retirement rule work for Australians?

The 4% rule has survived decades of scrutiny, but Australia's retirement system changes the equation in ways most overlook. Before accepting or rejecting this rule of thumb, it pays to understand what really drives retirement outcomes.

Shares

Glencore lands on the ASX. Should BHP and Rio shareholders switch?

A coal-heavy miner with governance concerns isn't the obvious choice for investors. Yet, Glencore's ASX listing may offer something BHP and Rio can't. The challenge is working out whether the opportunity outweighs the risks.

Why does the system treat capital gains and losses differently?

Investors are often told not to let tax policy drive their investment decisions. Yet, under the new CGT rules, portfolio construction, volatility and even how assets are owned may have an outsized impact on their final outcome.

Economy

Three common sense reforms that Australia needs

What do frozen bank accounts, mortgage traps and pension penalties have in common? They're all symptoms of a system that makes life much harder. Yet the obvious solutions seem to have escaped the attention of Canberra.

Shares

The hidden cost of government debt for investors

Some of the important effects of rising public debt never make the headlines. Research shows the immediate effects may already be unfolding, influencing corporate behaviour in ways that many investors would never suspect.

Investment strategies

When do fundamentals matter?

Is fundamental investing losing its grip on markets? Investors continue to search for valuation-based explanations for every price move, but the dominant force behind short-term returns may be something else altogether.

Sponsors

Alliances

  • ASA-Logo-RGB-ActiveGreen-web.png

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.