Gen Z Traders Shift to ETFs on Binance

Gen Z traders on Binance have shown a significant increase in their allocation to exchange-traded funds (ETFs), with ETFs now accounting for 25% of their equity trading volume as of early August. This marks a rise from July, when ETFs represented 21.9% of Gen Z's net equity inflows, up from 18.5% in June.

Individual stocks have seen a decline in allocation, with 74.2% of Gen Z's inflows going towards individual stocks in July, down from 77% the previous month. Binance warned that its short direct-equities data window limits conclusions about lasting behavior.

A study by Binance Research compared trading frequency, net capital flows, and leverage use among Gen Z, Millennials, Gen X, and Baby Boomers. The results showed that Gen Z traded less frequently than other working-age generations, with an average of 13 trades per month across traditional finance perpetuals.

Gen Z's ETF activity is notable, particularly as the cohort remains net buyers across all three Binance equity products. Among direct-equity accounts, 22% had never submitted a sell order, while 30% of Millennials' direct-equity accounts showed no sell orders.