Consistency is king across generations: TSLA, AMZN, AAPL, AMC remain top traded symbols
JERSEY CITY, N.J. –– January 27, 2022 –– DriveWealth, LLC, a pioneer in fractional investing and embedded finance, today released new research highlighting trends in retail investing around the globe during 2021. The report is based on aggregated data from more than 15 million customers around the world who trade fractional shares of U.S. equities through DriveWealth’s network of 100+ global partners, including Revolut, MoneyLion, and Stake, among others.
Inflows to U.S. equities in 2021 outpaced the preceding 20 years, bringing retail trading volumes to nearly a quarter of daily average volumes, a new record relative to institutional trading. Account openings through DriveWealth’s embedded finance platform grew 241% since January 2020, with a 12% increase in 4Q21 alone. Notably, younger investors are leading the charge: 80%+ of new accounts were opened by Millennials and Gen Z. The number of trades placed on DriveWealth’s platform by Millennials increased 78% year-over-year and accounts opened by Gen Z grew 20% in 4Q21 vs. 3Q. In 2H21, Millennials set the trading pace with an average of over eight trades per quarter.
“With so many newer and younger investors entering the markets, it’s not surprising that the demand for digital investing continues to grow,” said Bob Cortright, Founder and CEO at DriveWealth. “Fractional investing unlocks access to financial opportunity for investors of all ages as it enables them to start small and learn as they go. As trade sizes trended lower and over 94% of trades made through our platform had a fractional component in 2021, fractional investing has become the norm. The traditional barriers to investing have been broken down and we’re leveling the playing field for each and every investor worldwide.”
DriveWealth’s data also revealed that investors around the world made the most of their time at home during the pandemic – spending, saving, borrowing, and investing through digital channels in the companies they know, such as Tesla and Amazon, consistently throughout the year. Top trading trends per region include:
“In 2022, we expect to see the user experience continue to evolve along with investor sophistication,” said Harry Temkin, Chief Information Officer at DriveWealth. “We’re already seeing demand for tools that enable investors to invest passively, engage often, exchange across asset classes, and automate their investing preferences. With these new embedded finance tools for financial wellness in the pockets of emerging investors around the globe, we believe we’ll see significant momentum carry into 2022.”
DriveWealth, the pioneer of fractional equities trading and embedded investing, is a visionary technology company which empowers more than 100 partners around the world to engage their customers by placing the markets in the palm of their hand. We believe the future is fractional, transactional and mobile. Every mobile device should be a gateway to accessing investing and savings products, services, advice, and assistance for global citizens of all ages, wealth stages, and levels of financial expertise. DriveWealth’s unparalleled consultative support and cloud-based, industrial strength technology platform allow partners to seamlessly offer branded investing experiences to drive customer acquisition, loyalty, retention, and revenue growth. DriveWealth’s commitment to continuous evolution and innovation makes it the partner of choice for powering the future of investing. For more information, please visit drivewealth.com or connect with us on Twitter @DriveWealth or on LinkedIn.
Emily Baldwin, DriveWealth
Email: [email protected]