ARLINGTON, Va.--(BUSINESS WIRE)--E*TRADE Financial Corporation (NASDAQ: ETFC) today announced insights from its most recent wave of StreetWise, the E*TRADE quarterly tracking study of experienced investors. As part of its Diversity in Financial Services Thought Leadership series, E*TRADE examines niche investor populations to create a more inclusive environment around personal finance and break down the barriers of taboo money conversations. In conjunction with Women’s History Month, E*TRADE analyzed trends among single female investors, a segment which is expected to make up almost half of the working female population between the ages of 25–44 in the next 10 years.1 Results show:
- Single women show outsized interest in less conventional investments. Single females are more interested in marijuana securities (35%) blockchain and crypto-related securities (33%), and Environmental, Social, and Governance (ESG) investments (29%), compared to 26%, 24%, and 18% of the total population respectively. Almost two out of five single women (37%) are more likely to invest abroad than domestically, compared to 29% of the total population.
- Many take early retirement withdrawals. More than two out of five single women (43%) have taken early withdrawals from their retirement accounts, compared to one third of the total population (33%). They’ve dipped into their retirement account for a large purchase (17%), a medical emergency (15%), unemployment (12%), or education costs (12%).
- They show pronounced interest in emerging benefits. Single females are more likely to be interested in financial wellness benefits like student loan refinancing (24%) and education reimbursements (42%), compared to 17% and 34% of the total population, respectively.
“Many single people carry the financial burden of an entire household, which can make it difficult to prioritize and visualize long-term financial goals when you’re trying to stay above water on the day-to-day,” said Kerry McDermott, Senior Director of E*TRADE Advisor Services. “For those who are hesitant to get started, it bears repeating that it’s critical to create a foundation, however small. Over time, the power of compounding can help women build their wealth and put them on the path to financial security.”
E*TRADE aims to enhance the financial independence of traders and investors through a powerful digital offering and professional guidance.
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About the Survey
This wave of the survey was conducted from January 1 to January 10 of 2020 among an online US sample of 907 self-directed active investors, composed of 121 single female investors, who manage at least $10,000 in an online brokerage account. The survey has a margin of error of ±3.20 percent at the 95 percent confidence level. It was fielded and administered by Dynata. The panel is broken into thirds of active (trade more than once a week), swing (trade less than once a week but more than once a month), and passive (trade less than once a month). The panel is 60% male and 40% female, with an even distribution across online brokerages, geographic regions, and age bands.
Referenced Data:
In general, please rate your current interest in each of the following... |
|||
Total |
Single Females |
||
Blockchain and crypto-related securities |
24% |
33% |
|
Marijuana securities |
26% |
35% |
|
ESG investments |
18% |
29% |
|
Real estate |
43% |
53% |
|
Renewable resources |
42% |
52% |
|
Payment stocks |
38% |
46% |
|
I am more likely to invest abroad than domestically this quarter. |
|||
Total |
Single Females |
||
Agree (Top 2 Box) |
29% |
37% |
|
Strong agree |
10% |
16% |
|
Somewhat agree |
19% |
21% |
|
Neither agree nor disagree |
27% |
30% |
|
Somewhat disagree |
29% |
26% |
|
Strongly disagree |
15% |
7% |
|
Disagree (Bottom 2 Box) |
44% |
33% |
|
Have you ever taken out money from an IRA or 401(k) before the age of 59.5 and, if so, for what? |
|||
Total |
Single Females |
||
No |
67% |
57% |
|
Yes |
33% |
43% |
|
Yes, to make a large purchase |
12% |
17% |
|
Yes, because I became unemployed |
11% |
12% |
|
Yes, to pay for education |
8% |
12% |
|
Yes, for a medical emergency |
8% |
15% |
|
Yes, to simply spend on myself or my family |
6% |
11% |
|
Yes, to spend on a vacation |
4% |
6% |
|
Which of the following benefits that a potential employer could provide would be the most important to you? |
|||
Total |
Single Females |
||
Retirement plans |
82% |
79% |
|
Insurance other than health (e.g., life, legal, and auto) |
63% |
62% |
|
Employer stock at a discount or bonus |
48% |
41% |
|
Education reimbursement |
34% |
42% |
|
Commuter benefits |
24% |
28% |
|
Gym discounts |
19% |
17% |
|
Student loan refinancing |
17% |
24% |
|
Product discounts |
12% |
7% |
|
About E*TRADE Financial and Important Notices
1. Morgan Stanley, “Rise of the SHEconomy,” Morgan Stanley, September 23, 2019. https://www.morganstanley.com/ideas/womens-impact-on-the-economy
Automatic Investment Plans and dollar-cost averaging do not ensure a profit or protect against a loss in declining markets.
E*TRADE Financial and its subsidiaries provide financial services including brokerage and banking products and services to retail customers. Securities products and services are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Commodity futures and options on futures products and services are offered by E*TRADE Futures LLC (Member NFA). Managed Account Solutions are offered through E*TRADE Capital Management, LLC, a Registered Investment Adviser. Bank products and services are offered by E*TRADE Bank, and RIA custody solutions are offered by E*TRADE Savings Bank, both of which are national federal savings banks (Members FDIC). More information is available at www.etrade.com. ETFC-G
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