Landmark Broadridge Study of More than 40 Million U.S. Retail Investors Highlights the Dramatic Shifts in How Americans Invest

Key Trends in U.S. Investor Behavior - Gen-Z, Millennial, and Gen-X investors are steadily increasing their share of assets, while Boomers and the Silent Generation's assets continue to decline [1] - Self-directed investing is rising in popularity across generations, with 31% of all investors allocating assets to online discount brokerage platforms [5] - Mutual funds are losing favor among Americans, with allocations to ETFs and U S equities on the rise [1] Self-Directed Investing Growth - Since 2018, the number of investors adopting self-directed investing has surged, with 23% of assets now held via online discount brokerages, up from 14% in 2018 [5] - High-Net-Worth investors rely more on self-directed investing compared to Mass Market and Mass Affluent cohorts, with nearly 25% of assets in this channel [6] - Gen-Z, Millennial, and Gen-X investors collectively increased their self-directed assets by 9 percentage points to 36%, while Boomers and the Silent Generation saw declines [7] Generational Shifts in Investing - Millennial investors are on track to surpass Gen-X investors, with their count increasing by 9 percentage points since 2018, from 13% to 22% [8] - The average number of investments held by Millennials grew from 6 in 2018 to 10 in 2023, the fastest increase among all generations [9] - Gen-Z, Millennial, and Gen-X investors are increasingly favoring ETFs and U S equities over mutual funds, with Gen-Z doubling equity ownership from 0 2% to 0 4% since 2018 [12] ETF and Equity Investments - ETF usage rose to 47% in 2023 from 31% in 2018 and is expected to exceed 50% by 2025 [10] - Mutual fund assets dropped below equity assets in individual investors' portfolios for the first time in 2023, with mutual fund ownership declining from 72% in 2018 to 62% in 2023 [11] - The average number of equity investments held by investors doubled from 4 in 2018 to 8 in 2023 [11] Demographic Insights - Female investors have higher median assets than male investors, with $52,105 compared to $50,271 in 2023 [10] - Men make up 51% of investors and control 55% of assets in 2023, up slightly from 54% in 2018 [18] - The share of investors without a college degree exceeded 50% for the first time in 2022, reaching 51% in 2023 [18] Industry Implications - The democratization of investing has accelerated, with online discount brokers gaining a larger share of assets, jumping from 14% in 2018 to 23% in 2023 [18] - Asset managers, broker-dealers, and advisors are evolving their practices to better serve a more diverse class of investors across generations [4] - Broadridge's U S Investor Study provides critical insights into investor habits and sales channels, helping firms align resources and make informed strategic decisions [14]