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.

 

  •   13 November 2019
  • 2
  •      
  •   

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

Building a lazy ETF portfolio in 2026

What are the best ways to build a simple portfolio from scratch? I’ve addressed this issue before but think it’s worth revisiting given markets and the world have since changed, throwing up new challenges and things to consider.

Get set for a bumpy 2026

At this time last year, I forecast that 2025 would likely be a positive year given strong economic prospects and disinflation. The outlook for this year is less clear cut and here is what investors should do.

Meg on SMSFs: First glimpse of revised Division 296 tax

Treasury has released draft legislation for a new version of the controversial $3 million super tax. It's a significant improvement on the original proposal but there are some stings in the tail.

Ray Dalio on 2025’s real story, Trump, and what’s next

The renowned investor says 2025’s real story wasn’t AI or US stocks but the shift away from American assets and a collapse in the value of money. And he outlines how to best position portfolios for what’s ahead.

10 fearless forecasts for 2026

The predictions include dividends will outstrip growth as a source of Australian equity returns, US market performance will be underwhelming, while US government bonds will beat gold.

13 million spare bedrooms: Rethinking Australia’s housing shortfall

We don’t have a housing shortage; we have housing misallocation. This explores why so many bedrooms go unused, what’s been tried before, and five things to unlock housing capacity – no new building required.

Latest Updates

3 ways to fix Australia’s affordability crisis

Our cost-of-living pressures go beyond the RBA: surging house prices, excessive migration, and expanding government programs, including the NDIS, are fuelling inflation, demanding bold, structural solutions.

Superannuation

The Division 296 tax is still a quasi-wealth tax

The latest draft legislation may be an improvement but it still has the whiff of a wealth tax about it. The question remains whether a golden opportunity for simpler and fairer super tax reform has been missed.

Superannuation

Is it really ‘your’ super fund?

Your super isn’t a bank account you own; it’s a trust you merely benefit from. So why would the Division 296 tax you personally on assets, income and gains you legally don’t own?

Shares

Inflation is the biggest destroyer of wealth

Inflation consistently undermines wealth, even in low-inflation environments. Whether or not it returns to target, investors must protect portfolios from its compounding impact on future living standards.

Shares

Picking the next sector winner

Global equity markets have experienced stellar returns in 2024 and 2025 led, in large part, by the boom in AI. Which sector could be the next star in global markets? This names three future winners.

Infrastructure

What investors should expect when investing in infrastructure: yield

The case for listed infrastructure is built on stable earnings and cash flows, which have sustained 4% dividend yields across cycles and supported consistent, inflation-linked long-term returns.

Investment strategies

Valuing AI: Extreme bubble, new golden era, or both

The US stock market sits in prolonged bubble territory, driven by AI enthusiasm. History suggests eventual mean reversion, reminding investors to weigh potential risks against current market optimism.

Sponsors

Alliances

© 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.