Gen Z is most risk-averse generation, according to Futu whitepaper

Rick Steves

Gen Z investors (born in or after 1997) are the most risk-averse investors while Gen X (born in or before 1980) are the biggest risk-takers, according to data collected by moomoo and Futubull, both entities owned by digital brokerage group Futu Holdings. 

The survey also found that female investors’ investments are more diversified in 2022 and investors increased daily trading frequency but decreased the weighting of stocks in the first 6 months of 2022.

Futu collected data from investors across three different regions, including Hong Kong SAR (“HK”), US, and Singapore (“SG”), who are using Futu’s two flagship investing apps – moomoo and Futubull.

Gen X are oldest and greatest risk-seekers

The whitepaper on investor behavior and trends shows that there is a different appetite for risk among the three generations, with the Gen X group being the oldest generation and the greatest risk-seekers as their stock position remained the highest among all three generations.

Gen X’s investing patterns slightly changed, with only a 2.8% decrease in stock investment value to 89.4% on June 15, 2022, compared to December 31, 2021.

Gen X investors had only 8.4% and 1.8% of their positions to funds and bonds, respectively, the lowest of all three generations.

Gen Z are the most risk-averse investors

Counterintuitively, the Gen Z group were the most risk-averse investors, with equities investments significantly declining (-8.6%), from 85.3% on December 31, 2021, to 76.7% on June 15, 2022.

The youngest generation allocated 14.9% and 7.7% of their positions to funds and bonds respectively, the highest level among all three generations.

Generation Y (born between 1981 and 1996) was found to be in the middle ground between the risk taker generation Gen X and the risk averse generation Gen Z.

Similar investing patterns by gender

As to gender, male and female investors show similar investing patterns, with investments comprising mainly stocks (85%-92%), followed by funds, the research found.

Hong Kong-based female users tend to allocate more bonds into their portfolios (5% of female HK clients’ investments are composed of bonds, which is 1.6% higher than male HK clients).

Hong Kong and Singapore-based female investors executed more options during H1 2022, with the daily amount of stock options executed by HK and SG female investors increasing 11% and 21% respectively, compared to H2 2021.

HK investors trade the most per day

Futu also mentioned investors’ increased daily trading frequency while decreasing weighting of stocks in the first half of 2022.

Investors from Hong Kong, Singapore, and US markets all recorded a decline in stock weighting, dropping 4.3%, 4.4% and 3% in HK, US and SG, respectively, the report stated, adding that US investors opted to diversify their portfolios with fund products, with the proportion of fund value climbing to 13.2% in June 2022 from 8.8% in December 2021.

US investors traded 0.43 times per trading day, compared to HK investors who traded 1 time per day, and SG investors trading 0.35 times per day.

US investors’ average daily trading frequency jumped to 0.43 times in H1 2022, representing an increase of 26.5% from H2 2021’s 0.34 times. Investors from HK and SG executed 20.5% and 52.2% more trades in H1 2022 than H2 2021, respectively.

Read this next

Market News

Stock Market Analysis: Is NVDA Losing Its Leadership?

Since the beginning of the week, the S&P 500 Index (US500) has seen a modest increase of about 0.58%, whereas NVDA’s share price has experienced a decline of approximately 3.8%. This recent divergence raises concerns among Nvidia stock investors — could it signify a loss of NVDA’s market leadership?

Industry News

ESG: Australian regulator wins first greenwashing court case against Vanguard

Vanguard admitted that a notable portion of the securities within both the Index and the Fund did not undergo the promised ESG scrutiny.

Fintech, Uncategorized

BitMEX integrates HALO from Solidus Labs for cross-market surveillance

““The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

Web3

COTI Teams Up with Civic for Enhanced Digital Identity Control

СOTI and Civic are teaming up to enhance digital identity security in Web3, aiming to provide users with more control over their digital selves through innovative technology.

<