Most ETF investors say economic and political events such as rising inflation and elections have had no impact on how they invest in ETFs, according to a new report from Charles Schwab Asset Management.
ETF investors are more excited about technology and growth stocks than they were last year.
Younger generations of investors are more likely to express interest in investments such as cryptocurrencies and alternative ETFs than older generations.
Millennials also want to increase their allocations to fixed-income ETFs.
Market volatility, rising interest rates, inflation, and the upcoming presidential election have not affected most people’s investment strategies Exchange Traded Funds (ETF) Investors.
Most ETF investors surveyed by Charles Schwab (Southwest) Asset Management said that these economic and political events have not changed the way they invest in ETFs. In fact, nearly a third of investors have put more money into ETFs based on their reading of stock market volatility, rising interest rates and persistent inflation, according to survey results released this week.
ETFs have a proven track record across market cycles, said David Potsett, managing director and head of innovation and stewardship at Schwab Asset Management, adding that “investors are confident in their investments even when the outlook is uncertain.”
What are ETF investors betting on?
ETF investors have become more bullish on certain types of stocks and sectors since last year: 69% are bullish on technology and 60% are bullish on technology. Growth stocks.
In addition, 55% of investors are optimistic about… Brilliant 7a group of seven technology giants including Nvidia (NVDA), dead (dead), Amazon (Amzn), Microsoft (MSFT), alphabet (Google) (Google), apple (Apple) and Tesla (TSLA).
Mag 7 stocks have a huge impact on stock markets and have led most of the S&P 500’s returns over the past year. But when they falter, as they did in July of this year, they tend to drag the broader stock market down with them.
Millennials want the risks of cryptocurrencies but are also risk averse
The survey also showed how investment preferences vary across generations.
For example, 62% of Millennials (or those born between 1981 and 1996) said they plan to invest in… Cryptocurrency ETFs within the following year versus 15% of baby boomers (or those born between 1946 and 1964). A quarter of millennials said they plan to invest in alternative ETFs, compared to just 11% of boomers.
Meanwhile, 44% of Millennials also want to increase their exposure to lower-risk fixed-income ETFs. In contrast, fewer GenX (34%) and Boomer (26%) investors plan to do the same.
This is in line with other recent studies pointing to recent volatility in the stock market Millennials are more risk averse Compared to some older generations.
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