How young Aussie women are overtaking male investors
Shares are gaining favour among young women, with research from Nabtrade showing that female gen-Zers hold 20% more assets than their male peers.
Women are also more inclined to play the long game, making fewer trades than men despite holding larger portfolios.
"When it comes to building wealth, young women are starting early and showing great confidence in their stock picking - putting them in good stead to reduce wealth inequality between the sexes over time," says Gemma Dale, Nabtrade director of SMSF and investor behaviour.
On a sector basis, women are steering towards ethical ETFs while avoiding gambling and energy stocks.
The gender split is not market-wide, though, with men and women equally likely to hold at least one of the big miners in their portfolio.
A survey of more than 8500 Australian investors and traders, by researcher Investment Trends, indicates there is confidence that domestic equities will play a key role in investment portfolios.
Eighty-four per cent agreed that investing in shares can help them achieve their financial goals sooner, while 54% see shares as a safer bet than property.
Interest in shares among young women speaks to a larger generational shift, says Nabtrade, with female baby boomers' portfolios just over half the size of those of their male peers.
Meanwhile, young Australians are leading the way globally when it comes to prioritising long-term returns.
Challenging long-held assumptions about the short-termism of young people, a Calastone study, which surveyed more than 3000 people aged 23-35 across Australia, UK, France, Germany, US and Hong Kong, reveals Australians are more returns-focused (60%) than their global counterparts (53%).
According to Ross Fox, Calastone managing director, Australia and New Zealand, the "study shows a generation of investors who are clearly outcomes-focused and demand greater transparency, accountability and engagement than comparatively wealthier generations before them.
"Fund managers who can tailor product offerings, diversify direct engagement channels, demonstrate their value and maintain transparent investor communication will be the winners in attracting and retaining capital from this maturing millennial market."
However, the survey shows that millennials place less importance on ethical funds, causes and products. This means fund managers will need to find the balance between championing environmental and social themes and delivering sustainable investments.