Gen Z Investors Defy Expectations with Conservative Trading Habits
Gen Z investors are surprising experts by favoring traditional investments over high-risk strategies. According to Binance Research's report, Gen Z accounts for the lowest turnover rate among working-age cohorts on the exchange.
When it comes to ETFs, Gen Z is directing more than twice as much of its equity trading toward funds compared to millennials. Unleveraged ETFs accounted for 18.5% of Gen Z's net equity inflow in June and 21.9% in July.
The average direct-equity purchase among Gen Z accounts that had only bought and never sold was $16,567 for Schwab's US Dividend Equity ETF (SCHD). Broadcom followed at $12,370.
Some 22% of Gen Z direct-equity accounts in the report had never placed a sell order. Among bStocks accounts, 76% were net accumulators, and in direct equities, 77% were accumulating.