Women outpace men on share investing despite wage gap: Pearler
New research from Pearler, one of Australia’s leading investment apps, shows that Millennial women are picking up share investing at the same rate as men, despite having to overcome a 36% wage gap.
Despite a momentous difference in wages, similarities are common when it comes to share investing behaviour, says Nick Nicolaides, Co-Founder of Pearler.
“Our recent research shows that both women and men hold an average 2.5 assets, invest once a month, and allocate about 70 per cent of their portfolio to ETFs,” he said.
“We’ve seen financial independence blow up as a theme for young people, particularly women, who are becoming more proactive in dealing with historical hurdles like lower wages, minimum cheque sizes, access to education and support,” added Ana Kresina, Head of Product at Pearler.
53% of account holders at Pearler are women, with 50% between the age of 26-35, and 30% from 18-25 years.
The research shows women are investing, on average, 12% of their post-tax income. This is slightly higher than its male investors, who invest 10% of their relatively higher incomes.
Mrs Kresina said that alongside allocating a higher portion of their already reduced income to investing, what is also interesting is the product choice difference between men and women.
“What stands out, also, is that women are investing in ESG ETFs at a rate greater than double that of their male counterparts,” said Kresina.
“What we are hearing and then seeing in the data is that younger investors, especially women, want to make more ethical investment choices when considering their future – it’s something investors feel very strongly about,” she said.
Claire, an investor on Pearler noted, “I think about how my son will be in his early 30s in 2050, when the climate will be much more difficult to live and thrive in.
“I want to support industries that are doing the right thing for future generations and investing in decarbonisation and the circular economy – I will be able to enjoy retirement knowing I did right by him”
Other investors have taken a more granular approach, forming their own views on what companies represent ESG to them.
“To me, that is supporting those making a positive impact in ways such as socially, climate and sustainability leaders, companies with greater representation of women in senior leadership roles and on boards, clean technology and corporate governance,” noted Kelly Foreman, who invests on Pearler.
Foreman added, “You don’t need to compromise financial returns when considering the ESG criteria; there doesn’t need to be a performance sacrifice. It’s been really interesting to take a deep dive into companies that align with my values and meet the ESG criteria.”
Nicolaides added, “As we continue to grow the business and team, we know we need to remain inclusive through our product, services and marketing. If we build the right culture, the product and our investors will benefit.
“That’s why we share our community data publicly.”
