Fri, 04 June 2021 | demographics investing
Results from the most recent wave of StreetWise, the E*TRADE quarterly tracking study of experienced investors show confidence spiked, risk tolerance grew, and engagement increased among Gen Z and Millennial investors during the pandemic. Nearly three out of four investors (72%) under the age of 34 said they are confident in their portfolio decisions, 16 percentage points higher than last year and 15 percentage points higher than the total population. More than two in three Gen Z and Millennial investors (70%) said their risk tolerance increased within the last three months of the pandemic, 19 percentage points higher than Q3 2020—the first quarter the question was asked—and 23 percentage points higher than the total population.
Millennial and Gen Z investors are also trading more. Over half of investors under the age of 34 said they are trading equities (58%) and derivatives (55%) more frequently, compared to 40% and 36% of the total population, respectively. Mobile trading activity also saw a jump, with more than three quarters of Gen Z and Millennial investors (76%) trading at least once a week on their smart phone, up 14 percentage points from a year ago and 27 percentage points higher than the total. Nearly three in five (59%) said they are more likely to rely on their mobile device to trade during the last three months of the pandemic, compared to 39% of the total.
“Over a year into the pandemic, trading activity remains robust, especially among young investors,” said Chris Larkin, Managing Director of Trading and Investment Product at E*TRADE Financial. “While the market has continued to rise during most of the pandemic, keep in mind that volatility is par for the course. It’s critical for investors to stay committed to a disciplined trading approach during the dips and consider valuations and the fundamentals of any one name before swooping in on a new buying opportunity.”
Source: E*TRADE