Report reveals Big Tech remained on top, Crypto markets soared, and The Retail Investing (re)Evolution is here to stay
DriveWealth, LLC, a pioneer in fractional investing and embedded finance, released new research highlighting trends in retail investing around the globe during 3Q21. The report is based on aggregated data from millions of retail investors 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.
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Key findings from the report include:
- Increased mobility brings decreased trading throughout the markets: A 35% increase in active mobility coincided with lower participation in the financial markets overall as people around the globe began moving again with the rise in COVID-19 vaccination rates. While the number of trades placed on the DriveWealth platform rose 34% year-over-year, trading volumes were down in 3Q21, in line with larger market trends. Average trade size, however, increased to $260, up 4% from 2Q21.
- Shifting demographics among active investors: Data revealed a 14% increase in approved accounts, fueled by investors aged 20-49. While the largest absolute number of new accounts opened was by investors aged 20-29, investors ages 30-59 traded more frequently than both younger and older investors, revealing a barbell effect in engagement among investors. Investors aged 50-59 on average placed trades that were 18% higher in 3Q21 than 2Q21, finally surpassing the average trade size of investors 60+ for the first time.
- Big Tech stocks take the lead: DriveWealth’s quarterly Retail Trends Reports continue to show that retail investors around the globe focus on investing in the brands that they know. In 3Q21, we observed a rotation back towards the biggest tech names across every region, while cryptocurrency exchange Coinbase (COIN) fell off all Top 10 lists.
“Once again, 95% of trades placed on the DriveWealth platform in 3Q21 had a fractional component. This is a powerful statistic, as it suggests our platform offers retail investors the ability to place orders in notional amounts, rather than share amounts, so they can trade in terms they understand – whether that’s $1 or 100 rupees,” said Bob Cortright, founder and CEO of DriveWealth. “As we continue to expand our services internationally, we look forward to continuing to level the playing field for retail investors across all regions and segments.”
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Top traded symbols
- Apple (AAPL), Amazon (AMZN), AMC Entertainment Holdings (AMC), and Tesla (TSLA) were in the Top 10 traded symbols across the board – self-directed, advised, and in every region – EMEA, APAC, LATAM, and U.S.
- Microsoft (MSFT) made every Top 10 list except advised, where it fell to #13 on a volume basis
- In APAC, LATAM, and EMEA, seven of the Top 10 symbols in 2Q21 remained in the Top 10 for the region in 3Q21
- COVID-19 vaccine plays made the Top 20 for self-directed and advised accounts alike: Moderna (MRNA) and Novavax (NVAX)
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