Men may be more active—and more confident—investors than women. But, as it turns out, women may actually be the better investors.
That’s based on exclusive information from SigFig, which aggregated and anonymized data from more than 2.5 million portfolios, worth over $350 billion in total assets. The online investment manager found thatwomen outperformed men last year by 60 basis points, 4.7 to 4.1 percent.
One reason for the drop in performance could be that men were more likely to be active traders, experiencing portfolio turnover at a rate more than 1.5 times that of women.
This extra churn led men to have a more extreme return profile—they were both more likely to beat the market, but also more likely to outright lose money. Women had a more balanced result. They were most likely to have a smaller, market-lagging positive return.
Despite losing out to women on an average basis last year, men are still much more confident they can beat the market in 2015.
So which stocks do women favor?
They are far more likely to own Whole Foods and Kraft Foods, while men are more likely to own technology-focused stocks like Twitter and Tesla. Oil stocks (like BP, Chevron and ConocoPhillips) are more popular among male investors as well as soda stocks (Coca-Cola and PepsiCo). Big pharma names like Pfizer and Merck are more popular among women.