06/02/2024
In October 2022, The Motley Fool conducted a survey of 1,200 Millennial and Gen Z investors, as well as individuals outside of these generations. Asset managers looking to attract new clients might benefit from some insights into investment behaviours of younger investors. For example:
đź“Ś Almost 60% own either cryptocurrency or stocks, with crypto being slightly more popular.
đź“Ś The prevalence of crypto investments went from 40% in 2021 to 60% in 2022.
đź“Ś Possession of meme stocks went from 30% in 2021 to 40% in 2022.
Millennials and Gen Zers are more likely to own stock options (30%) and cryptocurrency (59%) compared to older generations (18% and 48%, respectively). But they are also less likely to have retirement accounts (41% vs 55%).
Comparison between investing behaviours of Millennials and Gen Zers also showed:
đź“Ś Millennials are more likely to hold ETFs (25%) and mutual funds (27%) than Gen Zers (14% and 18%, respectively).
đź“Ś 33% of surveyed Gen Z investors hold stock options, compared to 29% of Millennials.
Gen Z and Millennial investors are more likely to own ESG, penny, S**C, IPO, and REIT stocks than previous generations. It might indicate a greater inclination towards diversification.
When it comes to specific industries, younger investors’ trends are consistent with those observed across generations. Millennials and Gen Zers primarily invest in:
đź“Ś finance,
đź“Ś energy,
đź“Ś real estate,
đź“Ś technology.
They also demonstrated a growing interest in the ma*****na industry, with stock ownership in this sector rising from 20% to 25% between 2021–2022.
Asset managers interested in attracting a younger demographic should account for these generational investment trends. Understanding these patterns allows them to create more tailored investment solutions to meet the needs of Millennial and Gen Z investors.
