Canada has
the highest percentage of Gen Z investors, a new study by the Financial
Industry Regulatory Authority (FINRA), a US private brokerage industry
regulator, has found. The watchdog said nearly three-quarters or 74% of
Gen-Zers based in Canada and covered by the study had at least one form of investment.
The new
study was conducted by FINRA Education, the regulator’s education arm, in partnership
with the CFA Institute, a global association of investment professionals. The
research findings are based on a November/December 2022 online survey of 2,872
Gen Zers from the US, Canada, the UK and China.
The Gen Z
investors surveyed were aged 18 – 25 at the time of the study. In addition, the
research examined millennials aged 26 – 41 and Gen X
investors aged 42 – 57 across all the regions.
Comparing
its results from these jurisdictions, FINRA noted that the United States trails
behind Canda with 56% of surveyed Gen Z investors in the former country saying they owned at least
one form of investment. The United Kingdom and China come after with 49% and 57%,
respectively.
Meanwhile,
the study also found that ‘a surprisingly large percentage’ or 56% of
zoomers in the United States own at least some investments, with cryptocurrency as their top choice.
In detail, the research noted that young investors in the country primarily invest in cryptocurrency (55%) and
individual stocks (41%).
“[Gen
Z investors in the United States] are less likely than their older counterparts to use mutual funds
and are more likely, along with millennials, to invest in crypto and
non-fungible tokens compared with Gen Xers,” FINRA noted.
Furthermore,
the FINRA-CFA Institute project found that social media (48%), internet searches
(47%) and parents/family (45%) are just about equally important as primary sources of learning about investment and finances for US Gen Zers. However, when it comes
to online resources, however, YouTube dominates (60%) followed by internet searches,
Instagram, TikTok, Twitter, Reddit and Facebook.
In
addition, FINRA said Gen Z investors in the United States are risk-takers
with almost half (46%) “willing to take substantial or above-average financial
risks.” Half of US respondents said they have previously made an
investment as a result of the fear of missing out (FOMO).
Looking at
barriers to investing among young people in the United States, the study found that lack of savings
(65%) and lack of sufficient income or living paycheck-to-paycheck (64%) are
the biggest discouraging factors for zommers who did not own
any form of investment. Additionally, more than half
of the young investors (56%) also cited lack of knowledge about investing as a major reason they do not have any investment.
Young Investors across the World
Meanwhile,
British financial regulator also released a study on
young investors on Wednesday, noting that only 20% of youths are capable of disregarding
investment hype despite the fact that the number is significantly higher (33%)
when it comes to dating hype. At the start of the year, Cyprus’ finanicial watchdog also published a report on retail
investor behaviour, noting that only 31% of retail investors reply on so-called
‘finfluencers’.
In a
related development, Finance Magnates recently reported that regulators across
the world are increasingly cracking
down on ‘finfluencers’. However, questions remain about what regulatory
approach should be taken towards them.
Hantec Markets’ brand ambassadors; FlexTrade brings AI; read today’s news nuggets.
Canada has
the highest percentage of Gen Z investors, a new study by the Financial
Industry Regulatory Authority (FINRA), a US private brokerage industry
regulator, has found. The watchdog said nearly three-quarters or 74% of
Gen-Zers based in Canada and covered by the study had at least one form of investment.
The new
study was conducted by FINRA Education, the regulator’s education arm, in partnership
with the CFA Institute, a global association of investment professionals. The
research findings are based on a November/December 2022 online survey of 2,872
Gen Zers from the US, Canada, the UK and China.
The Gen Z
investors surveyed were aged 18 – 25 at the time of the study. In addition, the
research examined millennials aged 26 – 41 and Gen X
investors aged 42 – 57 across all the regions.
Comparing
its results from these jurisdictions, FINRA noted that the United States trails
behind Canda with 56% of surveyed Gen Z investors in the former country saying they owned at least
one form of investment. The United Kingdom and China come after with 49% and 57%,
respectively.
Meanwhile,
the study also found that ‘a surprisingly large percentage’ or 56% of
zoomers in the United States own at least some investments, with cryptocurrency as their top choice.
In detail, the research noted that young investors in the country primarily invest in cryptocurrency (55%) and
individual stocks (41%).
“[Gen
Z investors in the United States] are less likely than their older counterparts to use mutual funds
and are more likely, along with millennials, to invest in crypto and
non-fungible tokens compared with Gen Xers,” FINRA noted.
Furthermore,
the FINRA-CFA Institute project found that social media (48%), internet searches
(47%) and parents/family (45%) are just about equally important as primary sources of learning about investment and finances for US Gen Zers. However, when it comes
to online resources, however, YouTube dominates (60%) followed by internet searches,
Instagram, TikTok, Twitter, Reddit and Facebook.
In
addition, FINRA said Gen Z investors in the United States are risk-takers
with almost half (46%) “willing to take substantial or above-average financial
risks.” Half of US respondents said they have previously made an
investment as a result of the fear of missing out (FOMO).
Looking at
barriers to investing among young people in the United States, the study found that lack of savings
(65%) and lack of sufficient income or living paycheck-to-paycheck (64%) are
the biggest discouraging factors for zommers who did not own
any form of investment. Additionally, more than half
of the young investors (56%) also cited lack of knowledge about investing as a major reason they do not have any investment.
Young Investors across the World
Meanwhile,
British financial regulator also released a study on
young investors on Wednesday, noting that only 20% of youths are capable of disregarding
investment hype despite the fact that the number is significantly higher (33%)
when it comes to dating hype. At the start of the year, Cyprus’ finanicial watchdog also published a report on retail
investor behaviour, noting that only 31% of retail investors reply on so-called
‘finfluencers’.
In a
related development, Finance Magnates recently reported that regulators across
the world are increasingly cracking
down on ‘finfluencers’. However, questions remain about what regulatory
approach should be taken towards them.
Hantec Markets’ brand ambassadors; FlexTrade brings AI; read today’s news nuggets.
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