By Steve Garmhausen and Shayanne Gal
Men handle the investing, and women manage the household budget: For years, those entrenched gender roles limited many women's financial independence and ability to control their paths in life. But that is changing fast, as younger generations of women take control of their investments, tie them to longer-term goals, and often outperform men in the markets.
"I absolutely think that democratization, or I might call it gender neutralization, is occurring, especially with the younger generation," says Morgan Stanley's Deborah Montaperto, Barron's No. 1-ranked woman advisor this year.
The data bear it out: More young women, with Gen Z in the vanguard, are investing in the stock market than their forebears did. They're taking more healthy risks in their portfolios. And they're getting good results. Veteran advisors say this evolution is part of a broad sense of empowerment in which women are embracing financial planning to fund important goals, and using investments to power those plans.
"I think women have become increasingly engaged, informed, and proactive in their financial affairs," says MAI Capital Management's Marla Petti, who is Barron's No. 92-ranked female advisor.
Women's growing engagement comes at a time in which they control an increasing share of the nation's wealth, either through inheriting or earning it. By 2030, women are expected to double the wealth they control to nearly 40% of U.S. assets, according to McKinsey & Co.
The so-called great wealth transfer, when baby boomers are expected to pass along trillions of dollars to their heirs, is a significant reason. But women are increasingly earning their own wealth as corporate executives and entrepreneurs, notes Merrill Lynch's Debbie Jorgensen, ranked No. 28 this year on our Top Women Financial Advisors list. Their professional success can fuel confidence in taking more investment risk.
"A woman who's an entrepreneur, or perhaps an early pre-IPO investor or a professional, tends to be more risk-oriented and comfortable with financial markets," says Jorgensen. "Women who have inherited wealth may be more inclined to preserve and protect their portfolios, so they may be a bit more conservative." Investment managers, well aware which way the winds of wealth are blowing, have made women a focus of their outreach and education efforts.
As it turns out, women overall are a little better at investing than men. Studying six years of investment results among male and female clients, Wells Fargo found that women-managed accounts outperformed those led by men in both absolute and risk-adjusted returns (a measurement of how much risk was taken to achieve a given result). Wells cited women's disciplined approach, patience, and openness to seeking investment advice.
Not coincidentally, the number of female financial advisors has been rising, albeit gradually: Women now comprise less than a quarter of Certified Financial Planners, a respected industry designation. So, do women clients prefer to work with these women advisors? Not necessarily, it turns out. Just about a quarter of the women in Fidelity's study said they prefer to work with a female advisor and talk with other women about investing topics. Advisors say female clients' top priorities are working with professionals who aren't pushy, who communicate well, and who provide a feeling of empowerment.
Ali Flynn Phillips, of Obermeyer Wealth Partners, our No. 79-ranked woman advisor, said there is an exception: Female entrepreneurs often love working with female advisors, she says, because they share the experience of building businesses as women.
Women Investors by the Numbers
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July 18, 2025 16:00 ET (20:00 GMT)
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