Binance Research Says Gen Z Favors ETFs, Trades Less Frequently Than Older Investors
Forecast Trend Report by Period
Binance Research found that Gen Z investors show a stronger preference for exchange-traded funds and trade less frequently than older generations.
Cointelegraph reported on August 14 that Binance Research released a report comparing trading data on its platform across Gen Z, millennials, Gen X and baby boomers. The analysis covered direct stock trading, tokenized stocks and traditional finance perpetual futures.
As of early August, ETFs accounted for 25% of total stock trading volume among Gen Z, the report found. Net inflows into ETFs rose to 21.9% in July from 18.5% in June, while the share of individual stocks fell to 74.2% from 77% over the same period.
Gen Z was also less active than other generations by trading frequency. The group averaged 13 traditional finance perpetual futures trades a month, below 17 for millennials and 16.5 for Gen X.
The share of accounts that had never placed a sell order also varied by generation. Among Gen Z direct stock accounts, 22% had no history of selling, compared with 19% for Gen X and 9% for baby boomers. Millennials had the highest share of buy-only accounts at 30%. The top assets by cumulative purchases in Gen Z buy-only accounts were Broadcom, Tesla and the Schwab U.S. Dividend Equity ETF.
Gen Z also showed less interest in leveraged and inverse ETFs. Among Gen Z traditional finance perpetual futures accounts, 88.2% had no history of trading those products, compared with 84.5% for millennials and 85.9% for Gen X.
Binance said its direct stock service only began reaching scale in June, leaving too short a data history to assess long-term trends.
