Younger retail traders are investing more consistently and reviewing portfolios more actively than older generations, challenging the YOLO and “dumb money” stereotype. Indeed, Gen Z and Millennial investors are leading in disciplined monthly investing and portfolio diversification, says Bret Kenwell, US investment analyst at eToro.
The conclusions come from eToro’s Retail Investor Beat study, which surveyed 1,000 retail investors across the US. Key findings from the survey include that…
- 81% of retail investors invest monthly
- 89% of Gen Z and 90% of Millennials invest every month (vs. 74% of Boomers)
- 73% actively review their investments
- Diversification has increased across asset classes
- Foreign bonds (+47%), FX (+28%), and foreign equities (+26%) are all seeing sharp increases in ownership over the past year
In short, a wave of retail investors entered the market amid the volatility and fallout from Covid. While meme stocks and “YOLO” trades grabbed headlines early on, this cohort has matured.
Many are now more focused on thematic investing and diversification, approaching today’s landscape with a more open-minded mindset. And while past bouts of volatility delivered important — and often painful — lessons, those experiences are helping retail investors navigate today’s uncertainty.
