Gen Z Favors ETFs Over Individual Stocks, Trading Frequency Lower

Binance Research analyzed its platform users by generation and found that Gen Z increasingly prefers exchange-traded funds (ETFs) over individual stocks.

The report compared direct stock, tokenized stock, and traditional finance perpetual futures trading data across Gen Z, Millennials, Gen X, and Baby Boomers.

As of early August, ETF trading accounted for 25% of Gen Z's total stock trading volume, with a net inflow share rising from 18.5% in June to 21.9% in July.

The report attributed the shift to ETFs offering diversified exposure while individual stocks depend more heavily on company-specific performance.