I recently hosted a webinar here on Equities.com about Women and Wealth, and there was a true Aha Moment in the first session. It came when I referenced a 2024 study from Ellevest finding that 0% of women think the financial services industry was built with them in mind.
Let me reiterate that: according to the Ellevest survey, 0% of women think the financial services industry was built with them in mind. You could tell from the reaction that women who have money to invest have never felt so seen.
In the conversation between me, Carole Liable from Domini Impact Investments and Stephanie McCullough of Sofia Financial, we got to the root of why women feel marginalized in the traditional investment landscape.
More importantly, we talked about stunning data that rarely gets attention: women’s unique approach to money, wealth and investing has proven to be an advantage, with long-term investment results that rival and even outpace those of men.
Mindful investing approaches that work
Numerous studies, such as this one from Motley Fool, indicate that women investors tend to do as well as, or better than, male investors over time. That’s especially true on a risk adjusted basis – that is, women tend to get better returns compared with the level of risk they take.
| Risk adjusted returns | |
| Female-led joint account | 1.01 |
| Male-led joint account | 0.96 |
| Single female | 0.95 |
| Single male | 0.85 |
Source: The Motley Fool
In investigating why women succeed, studies have pointed to a few consistent aspects of the way women approach investing. Women tend to:
- Focus on the long-term
- Look for more information about risk
- Align their investments with their personal values
Carole Liable, whose company is women-founded and women-led, says it this way: “Women think differently, and that helps us to find patterns and trends that the street might overlook, or to avoid some potential problems that the street may not recognize.”
At the risk of oversimplifying, women don’t often chase volatile stocks that make headlines or pursue hot short-term gains. Instead, they look to build sustainable value in collaboration with companies they respect. It’s an approach that is very much in alignment with the principles of sustainable investing, and there is a lot of evidence that this mindful approach works.
“Women look to build sustainable value in collaboration with companies they respect.”
The companies you keep
What does mindful investing look like? Stephanie McCullough, an advisor who specializes in building retirement strategies for women, has a very clear picture of what women want to be as investors.
“You’re looking for companies that can sustain their success over time, and you’re looking for more and better information, not just about today’s earnings but also nonfinancial aspects of the company,” she says.
“Now there’s data that can help you [evaluate non-financial information]. I think women are really drawn to that data. It helps them see their own values reflected in their investments, and it also helps create results.”
Broadly speaking, women tend to prefer companies that are:
- Long-term oriented and thoughtful about risk
- Good at balancing the needs of all stakeholder, including shareholders, employees, and customers
- Thoughtful about their impact on the their communities
- Skilled at managing resources in a sustainable way, vs an extractive way
“Investing in this mindful way makes it more interesting and more engaging,” says McCullough. “And it feels good.”
Getting what you need out of money
The financial services industry may not historically have been welcoming to women’s perspectives, but women’s results are changing the landscape. As a long-time veteran of the industry, Liable is encouraged by the opportunities for women today.
“When I was a young professional, I would go to conferences on investing, and I would scan the room looking for one other woman,” she says. “But now I walk in and there’s gender diversity. I think that’s on us, those that are in the field, to bring that along… not only from a career perspective, but also an investing perspective.”
If you want to see these Aha Moments for yourself, and several others, you can see a replay of the this session on demand. You can also see Part 2 of the webinar, which featured portfolio manager Mitali Prasad from Trillium and financial educator Vanessa Lowe discussing the spectrum of investments that suit the mindful investor.
More of The Aha Moment: 3 lessons from the ‘oldheads,’ sustainable funds born before that was a thing
