Gen Z ETF Allocation Surges to 25% with Lower Leverage Usage

Binance data reveals Gen Z investors favor ETFs over individual stocks and leverage, trading less frequently than other cohorts while bStocks expands market share.

Woofun AI reports that Binance research indicates Gen Z investors are increasingly allocating capital to long-term instruments like ETFs. In early August, ETFs constituted 25% of Gen Z stock trades, while their share of net inflows rose from 18.5% in June to 21.9% in July, as individual stock investment proportions declined from 77% to 74.2%. Gen Z users demonstrate lower trading activity across direct stocks, tokenized stocks, and traditional financial perpetual contracts compared to Millennials and X Corp users. Specifically, Gen Z traders in perpetual contracts executed an average of 13 trades monthly, versus 17 for Millennials and 16.5 for X Corp users.

Furthermore, 22% of Gen Z direct stock holders never sold assets, exceeding the 19% rate among X Corp users and 9% among Baby Boomers. Top holdings for non-selling Gen Z users included Broadcom, Tesla, and Vanguard's high-dividend U.S. stock ETF. Regarding leverage, 88.2% of Gen Z perpetual contract users avoided leveraged or inverse ETFs, a higher abstention rate than Millennials at 84.5% and X Corp users at 85.9%.

Concurrently, Binance's bStocks briefly surpassed Kraken's xStocks to rank as the world's second-largest tokenized stock issuer. Ondo Finance leads with $972 million in tokenized stock value, followed by xStocks at $611 million and bStocks at $580 million.