Binance Study: Gen Z Prefers ETFs, Trading Frequency and Leverage Usage Lower Than Other Age Groups
Comparatively, Binance research data shows that Gen Z investors are gradually switching to long-term asset allocation tools such as ETFs. Compared to millennials, Gen X, and baby boomers, they trade less frequently and have weaker leverage preferences.
According to the data, ETFs accounted for 25% of Gen Z users' stock trading volume in early August. In July, ETFs accounted for 21.9% of the net inflow of Gen Z stocks, up from 18.5% in June; the share of individual stock investment fell from 77% to 74.2% during the same period.
Binance Research has analyzed transactions such as direct stocks, tokenized stocks, and traditional financial perpetual contracts. According to the data, Gen Z is less active in trading in all three types of assets than other working-age groups.
Among them, Gen Z traditional financial perpetual contract accounts traded an average of 13 times per month, lower than the 17 times for millennials and 16.5 times for Gen X. In direct stock accounts, 22% of Gen Z users have never sold shares, up from 19% of Gen X and 9% of Baby Boomers.
Among the accounts that Gen Z bought but did not sell, the assets with the highest cumulative purchase amount include Broadcom (Broadcom), Tesla, and Schwab US high-dividend stock ETFs.
When it comes to leveraged products, Gen Z representatives are showing a lower risk appetite. According to the data, 88.2% of Gen Z traditional financial perpetual contract accounts have never traded leveraged or reverse ETFs, higher than 84.5% of Millennials and 85.9% of Gen X.
Furthermore, the tokenized stock market continues to expand. According to the data, bStocks launched by Binance recently briefly surpassed Kraken's xStocks to become the second largest tokenized stock issuance platform in the world. As of the latest data, Ondo Finance ranked first with around $972 million worth of tokenized shares, xStocks and bStocks at around $611 million and $580 million, respectively.
