Too often, women are labeled ‘cautious investors¹’, and many have internalized the stereotype. But research shows a different story: when women invest, they often match or outperform men².
Still, the reality is that outdated myths, systemic barriers and a male-dominated financial industry hold many back from participating fully. Women have long faced systemic barriers to wealth building – from lower pay and costly childcare to career interruptions for caregiving and a greater reliance on part-time work. Add to that persistent shortfalls in financial education and literacy, and it’s no surprise many women find it harder to save and invest consistently.
Labelling them cautious, however, can present another barrier. “Calling women ‘cautious’ often gets heard as unknowledgeable or risk averse, and this can erode confidence and discourage participation in investing,” says Sue-May Talbot, Portfolio Manager and Partner at Genus.
Surveys show³ only 33% of women identify as investors, and just 42% feel confident in choosing investments aligned with their goals. Common wealth management approaches often leave women feeling unheard, spoken down to or sold products that don’t reflect their unique needs. Over time, this can chip away at their confidence.
The consequences are serious: in Canada, nearly half of women report having less than $5,000 in savings⁴, which not only puts their ability to retire at risk, but also exposes them to financial pressures in day-to-day life. “What’s more,” Talbot adds, “women live longer on average, which means they need to save even more for retirement.”
None of these challenges reflect women’s abilities as investors – yet they often limit their opportunities to participate fully in investing. It’s time to rewrite the narrative and acknowledge that, when given the chance, women are instinctively capable investors despite the barriers they face. Here’s why:
They’re naturally disciplined
Women often gravitate toward long-term investing strategies – the same approach we recommend to clients saving for retirement or a family legacy. Even in volatile markets, they tend to stay the course, resisting impulsive moves and focusing on steady growth. “Rather than ‘cautious,’ I see women as deliberate investors,” Talbot says. “They tend to be disciplined, risk aware, focused and diversified, which is exactly what good investing looks like.”
A recent study by Warwick Business School found that women outperform men⁵ by 1.8% annually by focusing on the long term with a more diversified portfolio. Women’s strong behavioural controls⁶ means they remain composed when markets are volatile. “They tend to trade less and build more diversified portfolios,” Talbot says. “They remain focused on the longer-term and their specific financial goals. And these behaviours tend to lower costs, limit mistakes and keep the focus on the end-goal.”
It’s a best practice Talbot advises for all clients – not only women. “I always discourage clients from jumping in and out of strategies or reacting to short-term fluctuations,” she says. And for good reason. “Chasing returns and bailing at the first dip can derail a portfolio and cause you to miss key rebound days. That’s why staying focused on the long term is typically the better path.”
They’re more likely to favour values-aligned investments
If there’s a silver lining to the financial challenges women face, it’s that they often develop a deeper sense of empathy – and many choose to channel that empathy into aligning their investments with their values.
Studies have shown that women prefer values-based investments⁷, and are nearly twice as likely as men to consider ESG factors⁸ in their investment decisions.
“Women are increasingly demanding strategies where they can use their investments to support companies that share their values – and that are making a positive impact on society,” Talbot says. “Many of my female clients prefer investing in companies driving positive environmental and social change.”
They’re up against persistent investment myths
A lot of would-be investors stop before they start, held back by familiar myths: that investing is risky, complicated or only for the wealthy.
Feeling hesitant is normal, but it’s time we bust these myths. “Of course there’s no guarantee with investing, but not investing can be the riskier approach over time,” Talbot says.
You also don’t need a lot of money to start: you can set up automatic deposits – even $25 a month – so it’s easy and consistent.
And you don’t have to be an expert: a good advisor can guide you through the complexities and help you make informed decisions that align with your goals.
The bottom line: when women invest with knowledge and support, they grow both their wealth and their confidence – and that’s exactly what we’re committed to making happen.
They’re often underserved by wealth managers
A recent report⁹ revealed that women are 2.5 times more likely to request working with women advisors. But only 15 to 20% of advisors are women. “In my experience, women prioritize trust and alignment when choosing a financial advisor,” Talbot says. “They want someone who can truly understand their needs.”
A straightforward solution is better representation in the financial sector: hire more women and maintain a better balance so clients can pick the advisor who feels like the right fit.
At Genus, we’ve made gender equity a priority – 50% of our staff are women so we can better serve our clients. But we go even further, prioritizing education, clear communication and personalized guidance with every client.
“Education is a big part of my work – and if that means spending extra time with newer investors, I’m all for it,” Talbot says. “The most rewarding part is the transformation: someone starts out unsure, and a year later they’re confident, comfortable with their portfolio, and making informed decisions. Seeing that growth is truly the highlight of my job.”
Interested in exploring how to meet your investing goals? Get started today with our values-based investment services.
This document is provided for general information purposes only and is not a substitute for professional advice. It does not constitute investment, legal, accounting, tax, or other advice or recommendations, nor should it be relied upon as the basis for any decision. Readers should seek specific professional guidance before making financial or investment decisions. Certain information herein is based on third-party sources believed to be reliable, but its accuracy and completeness are not guaranteed. Past performance is not a guarantee of future results.
References:
Client challenge. (n.d.-b). https://www.ft.com/content/9b60c729-f6fb-4eb9-bfe7-1290a38b4677
Are women better investors than men? | News | Warwick Business School. (n.d.). Warwick Business School. https://www.wbs.ac.uk/news/are-women-better-investors-than-men/
The gender investment gap. (2023, March 13). https://www.fidelity.ca/en/insights/articles/gender-investment-gap/
Rising expenses hurting Canadian women’s retirement security. (n.d.). Default. https://hoopp.com/news-and-insights/newsroom/newsroom-details/rising-expenses-hurting-canadian-women-s-retirement-security
Are women better investors than men? | News | Warwick Business School. (n.d.-b). Warwick Business School. https://www.wbs.ac.uk/news/are-women-better-investors-than-men/
Dr. Daniel Crosby, & Lara Coviello. (2022, August 24). Why Women Are The Ultimate Behavioral Investors. FA Mag. Retrieved October 22, 2025, from https://www.fa-mag.com/news/why-women-are-the-ultimate-behavioral-investors-69377.html?print
Iacurci, G. (2022, June 24). Women prefer values-based investing. Here’s what that might mean for their wealth. CNBC. https://www.cnbc.com/2022/06/24/women-prefer-values-based-investing-heres-how-that-impacts-their-wealth.html
ESG momentum is slowing for many investors, but not for women. (2023, March 11). Financialpost. https://financialpost.com/investing/esg-momentum-not-slowing-women-investors
- News releases. (n.d.). https://www.sunlife.com/en/newsroom/news-releases/announcement/only-15-of-financial-advisors-in-canada-are-women-while-womens-share-of-wealth-assets-expected-to-double-by-2028/123720/
