Gen Z Investors Prove Less Speculative Than Expected

Binance Research has published a new report titled 'Gen Z Perspective Rewrite', examining how Gen Z users behave across three TradFi products. The report finds that 22% of Gen Z direct-equity accounts have never placed a sell order, against 19% for Gen X and 9% for Baby Boomers. This suggests that Gen Z investors are more disciplined and allocation-oriented than common assumptions suggest.

In bStocks, Gen Z users were found to be the lowest-turnover working-age cohort, with an average of 1.63 trades a month compared to 3.45 for the typical user. The largest average buys in SCHD, a dividend ETF, and AVGO went up to US$16,567 and US$12,370 respectively, while TSLA and NVDA drew the smallest tickets.

The report also found that Gen Z leads net accumulation across all three products. In bStocks, 76% of Gen Z accounts were net accumulators, against 67% for Millennials. In direct equities, 77% accumulated, against 74% for Gen X and 68% for Baby Boomers.

According to the report, Gen Z is also avoiding leveraged and inverse ETFs more than any other working-age cohort on two of three products. The ETF share of equity volume rose from 14.6% in June to 25.0% in early August, indicating a rotation into unleveraged ETFs.