Women outperform men in the stock market!

Women outperform men in investing by 0.5-1% annually on average, even though men are more financially literate on average. This is because men are overconfident in finances, while women are underconfident. Women invest a larger proportion of their income. Men do more trading, market timing, and stock picking. Therefore, the combination of these factors makes women better investors.

The annual difference of 0.5% at first may not seem significant. But if you invested $500,000 in the S&P 500 for 30 years, the cumulative difference would be more than $1.1 million.

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