Gen Z Favors ETFs Over Individual Stocks

Research from Binance shows Gen Z traders increasingly favor exchange-traded funds (ETFs) over individual stocks. In early August, ETFs accounted for 25% of Gen Z equity trading volume, a significant increase from July and June.

The study also found that Gen Z direct-equity accounts tend to be buy-only, with 22% never placing a sell order, a lower percentage than older generations such as Baby Boomers (9%) and Gen X (19%).

Gen Z traders traded less frequently across all three equity products, averaging 13 monthly trades in TradFi perpetuals compared to 17 for Millennials and 16.5 for Gen X.

The report also noted that Gen Z shows little interest in leveraged and inverse ETF products, with 88.2% of Gen Z TradFi perpetual accounts recording no activity in those products.