Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 332

Young women are investing more in shares

While share ownership in Australia (and around the world) is dominated by men, there are encouraging signs that the wealth gap may close over time, as younger women start investing to build wealth. In a recent analysis by nabtrade, Gen Z women (the generation born between 1995 and 2015, following the Millennials) hold 20% larger portfolios than men of the same age.

Women's wealth traditionally held back

Demographic headwinds such as time out of the workforce to have children and lower average salaries have generally prevented women from accruing wealth at the same rate as men, resulting in a substantial wealth gap between the sexes in older generations.

In younger people, however, women are building portfolios through a combination of careful stock selection in large companies and much lower turnover rates than their male peers. This results in larger portfolios and lower transaction costs. In contrast, young men are more likely to hold stocks outside the S&P/ASX200 and to trade more frequently.

While women typically trade far less frequently than men across all age groups, they also trade in larger parcel sizes relative to their overall portfolio holdings. This aligns with global research since the 1990s, which suggests that men may be prone to overconfidence in their trading. Research shows men actively turn over their portfolios, which may reduce returns through excess transaction costs and imperfect market timing, while women place fewer trades and show greater commitment to their long-term investment strategies.

Stock selection

Individual shareholdings also differed between the genders across the generations, with women favouring staples such as Coles and Woolworths, as well as retailers including Harvey Norman. Women were also more likely to hold Bubs Australia and A2 Milk than their male counterparts.

nabtrade data showed women tend to stay with stocks and sectors that are familiar to them, meaning they are more likely to hold bank shares and less likely to invest in direct international shares than men across all age groups. While female investors showed a strong preference for ethical ETFs and were also much less likely to hold gambling and energy stocks than men, they were equally likely to hold one of the big miners.

Stock/Sector/Instrument Type

More likely to hold

Coles and Woolworths

Women

Retail sector

Women

Big Miners

Equal

Big Energy

Men

Gambling

Men

A2 Milk, Bubs Australia

Women

Domestic ETF

Women

International ETF

Men

Ethical ETF

Women

Differences between generations

While Gen Z women hold larger portfolios than their male counterparts, and Gen Y portfolios are of similar size between the sexes, female Baby Boomers hold just 56% of the portfolio size of men in the same age group. Gen X women hold portfolios nearly 78% the size of a man’s in the same age group.

These statistics paint a particularly dark picture of women’s economic wellbeing when couples commonly (and logically) choose to invest in the name of the lower-income earning spouse, typically the woman. Once accounting for this bias, the value of women’s overall holdings is further reduced.

The rise of online share trading and the proliferation of low-cost products such as ETFs has allowed young people of both genders to come to the share market at a younger age than previous generations, giving them a head start in wealth creation. As these investors grow in confidence and experience, it is hoped they will continue to invest for their future.

 

nabtrade is donating all brokerage on 27 November 2019 to help drought-affected farmers – find out more.

 

Gemma Dale is Director of SMSF and Investor Behaviour at nabtrade, a sponsor of Firstlinks. This material has been prepared as general information only, without reference to your objectives, financial situation or needs. For more nabtrade insights or to open an account, visit the website. You can also access Gemma’s weekly Your Wealth podcast on nabtrade, or via Apple podcasts, Spotify or Podbean.

For more articles and papers from nabtrade, please click here.

 

RELATED ARTICLES

How do women really invest?

Five lessons from the 'Witch' of Wall Street

Why women are most hurt by financial pandemic

banner

Most viewed in recent weeks

Which generation had it toughest?

Each generation believes its economic challenges were uniquely tough - but what does the data say? A closer look reveals a more nuanced, complex story behind the generational hardship debate. 

Maybe it’s time to consider taxing the family home

Australia could unlock smarter investment and greater equity by reforming housing tax concessions. Rethinking exemptions on the family home could benefit most Australians, especially renters and owners of modest homes.

The best way to get rich and retire early

This goes through the different options including shares, property and business ownership and declares a winner, as well as outlining the mindset needed to earn enough to never have to work again.

A perfect storm for housing affordability in Australia

Everyone has a theory as to why housing in Australia is so expensive. There are a lot of different factors at play, from skewed migration patterns to banking trends and housing's status as a national obsession.

Supercharging the ‘4% rule’ to ensure a richer retirement

The creator of the 4% rule for retirement withdrawals, Bill Bengen, has written a new book outlining fresh strategies to outlive your money, including holding fewer stocks in early retirement before increasing allocations.

Simple maths says the AI investment boom ends badly

This AI cycle feels less like a revolution and more like a rerun. Just like fibre in 2000, shale in 2014, and cannabis in 2019, the technology or product is real but the capital cycle will be brutal. Investors beware.

Latest Updates

Weekly Editorial

Welcome to Firstlinks Edition 628 with weekend update

Australian investors have been pouring money into US stocks this year, just as they start to underperform the rest of the world. Is this a sign of things to come? This looks at 50 years of data to see what happens next.

  • 11 September 2025
Exchange traded products

Are LICs licked?

LICs are continuing to struggle with large discounts and frustrated investors are wondering whether it’s worth holding onto them. This explains why the next 6-12 months will be make or break for many LICs.

Retirement

We need a better scheme to help superannuation victims

The Compensation Scheme of Last Resort fails families hit by First Guardian and Shield losses, as well as advisers who are being wrongly blamed for the saga. It’s time for a fair, faster, universal super levy solution.

Investment strategies

5 charts every retiree must see…

Retirement can be daunting for Australians facing financial uncertainty. Understand your goals, longevity challenges, inflation impacts, market risks, and components of retirement income with these crucial charts.

Economy

How bread vs rice moulded history

Does a country's staple crop decide elements of its destiny? The second order effects of being a wheat or rice growing country could explain big differences in culture, societal norms and economic development.

Investment strategies

Small caps are catching fire - for good reason

Small caps just crashed the party like John McClane did in the movie, Die Hard - August delivered explosive gains. With valuations at historic lows, long-term investors could be set for a sequel worth watching.

Defensive growth for an age of deglobalisation, debt and disorder

Today’s new world order appears likely to lead to a lower return, higher risk investment environment. But this asset class looks especially well placed to survive, thrive, and deliver attractive returns to investors.

Economy

Will we choose a four-day working week?

The allure of a four-day week reflects a yearning for more balance in our lives. Yet the reliability of studies touting a lift in productivity is questionable and society may not be ready for such a shift anyway.

Sponsors

Alliances

© 2025 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.