Binance Research: Gen Z Prefers ETFs, Trades Less Frequently, and Uses Less Leverage Than Other Age Groups

August 15th. According to Binance Research data, Generation Z investors are gradually shifting towards long-term asset allocation tools such as ETFs. Compared to Millennials, Generation X, and Baby Boomers, they trade less frequently and have a weaker preference for leverage.

The data shows that in early August, ETFs accounted for 25% of Generation Z users' stock trading volume. In July, ETFs accounted for 21.9% of Generation Z's net stock inflows, higher than June's 18.5%; during the same period, the proportion of individual stock investments decreased from 77% to 74.2%.

Binance Research analyzed trading behaviors such as direct stocks, tokenized stocks, and traditional financial perpetual contracts. The data shows that Generation Z's trading activity in these three asset classes is lower than other working-age groups.

Specifically, Generation Z's traditional financial perpetual contract accounts trade an average of 13 times per month, lower than Millennials' 17 times and Generation X's 16.5 times. In direct stock accounts, 22% of Generation Z users have never sold stocks, higher than 19% of Generation X and 9% of Baby Boomers.

Among Generation Z accounts that have bought but not sold, the assets with the highest cumulative purchase amount include Broadcom, Tesla, and the iShares U.S. High Dividend Equity ETF.

Concerning leverage products, Generation Z shows a lower risk preference. The data shows that 88.2% of Generation Z's traditional financial perpetual contract accounts have never traded with leverage or inverse ETFs, higher than 84.5% of Millennials and 85.9% of Generation X.

Furthermore, the tokenized stock market continues to expand. The data shows that Binance's bStocks recently briefly exceeded Kraken's xStocks, becoming the world's second-largest tokenized stock issuance platform. As of the latest data, Ondo Finance ranks first in tokenized stock value at approximately $972 million, while xStocks and bStocks are approximately $611 million and $580 million, respectively.