Gen Z Favors ETFs as Trading Frequency Slows

Gen Z investors on Binance are increasingly favoring exchange-traded funds (ETFs), accounting for 25% of their trading volume in early August. This is a notable shift, as ETFs made up just 21.9% of Gen Z net equity inflows in July, up from 18.5% in June. Meanwhile, the share going to individual stocks fell to 74.2% from 77%.

According to Binance Research, Gen Z traders are trading less frequently than their older counterparts across all three products: direct equities, tokenized stocks, and traditional finance perpetuals. In TradFi perpetuals, Gen Z averaged just 13 monthly trades compared to 17 for Millennials and 16.5 for Gen X.

Gen Z also showed a relatively low appetite for leveraged and inverse ETFs, with 88.2% of their TradFi perpetual accounts recording no activity in these products, compared to 84.5% of Millennials and 85.9% of Gen X.