Tracking the Alpha Female – six techniques financial advisers can employ when working with female investors


In line with International Women’s Day, State Street Global Advisors’ SPDR ETF business has released its Tracking the Alpha Female whitepaper, which explores six techniques financial advisers can employ when working with female investors.


Despite now controlling $11 trillion in investable assets, 39% of women in the US still feel misunderstood by the investment industry. Gender stereotypes and fundamental service misalignments continue to stand in the way of the industry meeting the needs of female investors.

Through appreciating the female investor as an individual and by understanding her fundamental characteristics financial advisers can take a true leap forward and lead the industry when it comes to gender intelligence.

Fundamental characteristics of the female investor include:

  • She takes a long-term approach to investing – Forty five per cent of female investors focus beyond five years when it comes to their investment timeframe.
  • She aims to make well informed decisions – Time and information allow female investors to make informed decisions and avoid regret. Close to 50% of female investors second-guess their decisions when they don’t have enough information to make an informed decision or when they feel pressured to make a decision.
  • She relates to emotional constructs, such as security and independence – The way women relate to money differs from that of men. For female investors money represents security and independence, with issues like the gender pay gap and the likelihood that she will outlive her spouse sitting top of mind.
  • She is relatively risk and loss adverse – Genetic factors like levels of testosterone and how the brain deals with stress can skew female investors into being more risk adverse. Unlike their male counterparts women also have more vivid memories of negative experiences – the female brain is hardwired for less-selective memory which can further deter risk taking.

Download the whitepaper.

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