Gen Z steers 22% of July equity inflows into ETFs

Gen Z investors directed a larger share of their equity allocations into ETFs in July and early August while trading less frequently and using less leverage than other working-age generations, Binance Research said in an analysis spanning direct equities, tokenized stocks and TradFi perpetuals. ETFs accounted for 21.9% of Gen Z net equity inflows in July, up from 18.5% in June, while their share of Gen Z trading volume reached 25% in early August. Over the same period, the share of net inflows going to individual stocks fell to 74.2% from 77%. The study adds to evidence that younger investors on Binance are leaning toward steadier, lower-risk positioning rather than high-frequency speculation. Gen Z averaged 13 monthly trades in TradFi perpetuals, below 17 for Millennials and 16.5 for Gen X, and 88.2% of Gen Z TradFi perpetual accounts showed no activity in leveraged or inverse ETFs, versus 84.5% of Millennials and 85.9% of Gen X. Among direct-equity accounts, 22% of Gen Z users had never placed a sell order, compared with 19% of Gen X and 9% of Baby Boomers, while Millennials had the highest share of buy-only accounts at 30%. Binance said top cumulative purchases among Gen Z buy-only accounts included Broadcom, Tesla and the Schwab US Dividend Equity ETF. The exchange also cautioned that its direct-equities product only reached meaningful scale in June, limiting the data window for long-term trend analysis. Separately, Binance's bStocks briefly overtook Kraken's xStocks this week as the second-largest tokenized stock issuer before falling back behind by Friday, with Ondo Finance remaining the largest issuer.

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