• Gen Z investors are showing a preference for exchange-traded funds (ETFs) over individual stocks.
  • The ETF share of Gen Z stock trading is rising, while the individual stock share is declining.
  • Gen Z has a lower trading frequency and a higher share of accounts with no history of trading leveraged or inverse ETFs.

Forecast Trend Report by Period

Gen Z investors are favoring exchange-traded funds over individual stocks, according to a recent analysis.

Cointelegraph reported on August 15 that a Binance Research report found ETFs accounted for as much as 25% of Gen Z stock trading volume earlier this month. ETFs also made up 21.9% of Gen Z net stock inflows in July, up from 18.5% in June. Over the same period, the share of individual stocks fell to 74.2% from 77%.

Gen Z also traded less frequently than other generations. Analysis of traditional finance asset-based perpetual futures trading data showed Gen Z averaged 13 trades a month, compared with 17 for millennials and 16.5 for Generation X.

The cohort also showed less appetite for high-risk products. Among Gen Z accounts trading traditional finance perpetual futures, 88.2% had no history of trading leveraged or inverse ETFs. The figure was 84.5% for millennials and 85.9% for Generation X.