Black, Hispanic and Latina women more likely to be new investors

Compared to the general population of investors, Black, Hispanic, and Latina women are more likely to be Ginny-come-latelies, with a major focus on building generational wealth.

That's according to a new study from JPMorgan Wealth Management, which drew from a survey of 1,069 investors aged 25 and older with at least $25,000 in investable assets.

The JPMorgan Wealth Management 2024 Diverse Investor Study, now on its third year, found that 51 percent of Hispanic and Latina women and 46 percent of Black women began investing outside of retirement plans within the past five years. This is compared to just 24 percent of all respondents.

“Money brings independence,” Kristin Lemkau, CEO of JPMorgan Wealth Management said in a statement. “Consistently women, and in particular diverse women, are motivated to build wealth to create more opportunities for their children and families.”

One of the report’s key findings is that younger Black, Hispanic, and Latino investors are more hands-on in their investment decisions. Among millennial investors in these groups, more than half (52 to 53 percent) take an active role in choosing the assets in their portfolios, while older generations tend to be less involved.

The survey also found women from diverse backgrounds were more likely to view their investing through multigenerational lens. A strong 74 percent majority of Hispanic and Latina women and 69 percent of Black women cite building wealth for future generations as a primary motivation to invest. 

Education was also a strong motivator for non-White investors. The report found 82 percent of Black, Hispanic and Latino respondents were putting in the same amount of money, if not more, towards a 529 account this year compared to 2023.

Unsurprisingly, the study revealed investors who have a financial plan fare better than those without one. Among respondents with a plan, 70 percent rated their financial health as excellent or good, while only 49 percent of those without a plan did the same.

“They understand in a time of changing markets that saving isn’t enough. They also need to invest to have their money make money,” Lemkau added.

Mirroring other studies, JPMorgan's polling found women tend to be more risk-averse than men in their investing strategies, with 77 percent of women describing their approach as cautious compared to 58 percent of men. That tracks with another finding in the study showing just 55 percent of women are confident in their investment knowledge, compared to 77 percent of men.

On the flip side, the research suggests women are less likely to have emotional investing reactions. "The majority of women investors surveyed say they don’t pay attention to how the market is impacting their personal finances, compared to 41% of male investors," the report read.