Gen Z favors ETFs and trades less than older cohorts: Binance
Binance data showed Gen Z allocating a growing share of equity activity to ETFs while trading less frequently and using less leverage than older working-age cohorts.
According to Binance research, Generation Z traders on the platform are increasingly allocating their equity activity to exchange-traded funds (ETFs), making up 25% of the cohort’s trading volume in early August. The popularity of ETFs among Gen Z increased to 25% in August, up from 21.9% in June, while the share going to individual stocks fell to 74.2% in August from 77% in June.
The analysis compared Gen Z accounts with Millennials, Gen X, and Baby Boomers in terms of trading frequency, net flows, and leverage usage. Gen Z traders traded less frequently than other working-age generations, with an average of 13 monthly trades in TradFi perpetuals, compared to 17 for Millennials and 16.5 for Gen X. Additionally, 22% of Gen Z direct-equity accounts had never placed a sell order, which was higher than the rates for Gen X (19%) and Baby Boomers (9%).
Gen Z also showed a relatively low appetite for leveraged and inverse ETFs, with 88.2% of their TradFi perpetual accounts recording no activity in those products, compared to 84.5% of Millennials and 85.9% of Gen X.
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