Trillions heading into the hands of women – which sectors stand to win?

Women are inheriting trillions and reshaping investments. This means a rising wave of capital looking for a home.

Women set to control most of Australia’s wealth. Who stands to win. Picture via Getty Images

• Women are set to control most of Australia’s wealth

• Female investors are chasing long-term, values-driven gains

• With this in mind, which sectors look set to win?

Behind closed doors and deep in the spreadsheets, something big is happening – women are taking the reins of global wealth.

Quietly, and with a lot less chest-thumping, women are amassing fortunes and rewriting the rules of money.

Right now, women hold roughly a third of all retail financial assets in the US and Europe, and that share is projected to rise to 40-45% by 2030.

In Australia, women are poised to inherit approximately 65% of the nearly $5 trillion expected to be transferred in intergenerational wealth by 2034.

This positions women as primary custodians of future wealth in the country.

The number of female millionaires in Australia is also increasing at nearly double the rate of male millionaires, growing at 5.7% annually compared to 3.6% for men.

And with more women outpacing men in education and sliding into top jobs, the flow of financial power is shifting fast.

Add in longer life expectancy, later marriages, and higher divorce rates, and you’ve got a growing wave of financially independent women steering their own wealth ships.

According to a report from McKinsey, over half of the assets women hold are currently unmanaged. That’s around $10 trillion globally just sitting around.

How women invest

And here’s where it gets interesting. Women clearly just aren't like men when it comes to investing – they’ve apparently got a different philosophy altogether.

Instead of swinging for the fences, most women invest like seasoned marathoners. They’re less interested in short-term wins and more focused on long-term security.

According to the McKinsey report, their top financial goals are: not running out of money in retirement, managing healthcare costs, maintaining a comfortable lifestyle, and not chasing the next moonshot stock.

They also place a premium on advice, especially in-person and personalised service. And if they don’t feel like they’re getting that? They walk.

And while they’re price-aware, they’re also looking for values-aligned investing; like sustainability, social impact and transparency.

Who stands to win?

So, who’s in the winner’s circle as women reshape the investing world?

According to the latest ASX Australian Investor Study, it’s clear from the trend that women are leaning towards long-term, stable plays.

That likely means strong interest in consumer-facing companies, ETFs, sustainable investing, healthcare, and diversified funds.

Think less crypto roulette, more "Warren Buffet".

Women are also big on passive income, investing to earn while they sleep.

Portfolio manager Vihari Ross says this isn’t just a gendered idea, but a smart one for anyone keen on more freedom and flexibility later in life.

Then there’s sustainable investing.

ESG (environmental, social, governance) funds are no longer niche, they’re now mainstream, and women are some of their biggest backers.

Clean energy, ethical fashion, impact-driven fintechs, these are the kinds of investments catching the female eye, notes the study.

Originally published as Trillions heading into the hands of women – which sectors stand to win?