Schwab: Majority of Retail Investors Plan to Up ETF Allocations

Core Insights - Retail investors are increasingly favoring ETFs, with a significant portion of their portfolios expected to be allocated to these investment vehicles in the near future [1][2] Investor Sentiment - A majority of investors (93%) with ETF holdings view them as essential to their portfolios, and 82% prefer ETFs over other investment options [4] - Over half (61%) of ETF investors plan to increase their allocations in 2025, and three-quarters are likely to invest in additional ETFs within the next two years [4] Current and Future Allocations - Currently, 27% of investors' portfolios are allocated to ETFs, with expectations that this will rise to 34% in the next five years [5] - A significant portion of investors (62%) plan to reallocate funds from individual stocks to ETFs, while 51% intend to pull money from mutual funds [5] New vs. Experienced Investors - Newer investors (those who began investing in ETFs within the last five years) are more inclined to increase their ETF allocations significantly compared to experienced investors [6] - 70% of newer investors are open to the idea of an ETF-only portfolio, compared to 49% of experienced investors [6]