New statistical data on investors collected via moomoo and Futubull highlights emerging investor behavior and trends including -
- Gen Z investors are the most risk-averse investors while Gen X group are the biggest risk-takers
- Female investors' investments are more diversified in 2022
- Investors increased daily trading frequency but decreased weighting of stocks in first 6 months of 2022
PALO ALTO, Calif., July 25, 2022 /PRNewswire/ -- The parent company of digital brokerage and wealth management platform moomoo, Futu Holdings Limited (Nasdaq: FUTU; "Futu") which serves nearly 20 million users, including more than three million clients, has released a whitepaper on investor behavior and trends emerging within the unique market conditions experienced throughout 2022.
In response to heightened market volatility as a result of rising inflation pressures, constrained monetary policies, lingering concerns of coronavirus variants and geopolitical tensions, statistical research by Futu concluded that:
1. Gen Z investors are the most risk-averse investors while Gen X group are the biggest risk-takers
The data showed a different appetite for risk among the three generations*.
Gen X group as the oldest generation, were the greatest risk-seekers as their stock position remained the highest among all three generations. Furthermore, their investing patterns slightly changed, with only 2.8% decrease in stock investment value to 89.4% on June 15, 2022, compared to December 31, 2021.
Counterintuitively, Gen Z group were the most risk-averse investors, and their equities investments significantly declined (-8.6%), from 85.3% on December 31, 2021, to 76.7% on June 15, 2022.
In aggregate, Gen Z investors allocated 14.9% and 7.7% of their positions to funds and bonds respectively, the highest level among all three generations. Gen X investors had only 8.4% and 1.8% of their positions to funds and bonds, respectively, the lowest of all three generations.
2. Female investors' investments are more diversified in 2022
Male and female investors* show similar investing patterns, with investments comprise mainly stocks (85%-92%), followed by funds.
Female HK investors tended to allocate more bonds into their portfolios. As at June 15, 2022, 5% of female HK clients' investments are composed of bonds, which is 1.6% higher than male HK clients.
HK and SG female investors executed more options during H1 2022. The daily amount of stock options executed by HK and SG female investors increased 11% and 21% respectively, compared to H2 2021.
3. Investors increased their daily trading frequency but decreased weighting of stocks in the first half of 2022
Compared to the level at the end of 2021, investors from Hong Kong SAR, Singapore and US markets all recorded a decline in stock weighting, dropping 4.3%, 4.4% and 3% in HK, US and SG, respectively.
US investors opted to diversify their portfolios with fund products, with the proportion of fund value climbing to 13.2% in June 2022 from 8.8% in December 2021.
In terms of trading frequency, US investors traded 0.43 times per trading day, comparing to HK investors who traded 1 time per day and SG investors trading 0.35 times per day.
US investors' average daily trading frequency jumped to 0.43 times in H1 2022, representing an increase of 26.5% from H2 2021's 0.34 times. Investors from HK and SG executed 20.5% and 52.2% more trades in H1 2022 than H2 2021, respectively.
When conducting this research, Futu compared the statistical summary of investment values as of December 31, 2021 to that of June 15, 2022, with data collected from investors across three different regions, including Hong Kong SAR ("HK"), US and Singapore ("SG"), who are using Futu's two flagship investing apps - moomoo and Futubull.
We then calculated investors' average trading frequency per trading day with the data extracted from the second half of 2021 (July 1, 2021 to December 31, 2021, or "H2 2021") and first half of 2022 (January 1, 2022 to June 15, 2022, or "H1 2022"), across investors from HK, US and SG.
We also compared investors' investment value and trading frequency by generation* and gender*.
*Generation - Generation X (born in or before 1980), Generation Y (born between 1981 and 1996) and Generation Z (born in or after 1997)
*Gender - Male investors and female investors, with data from HK and SG investors
Find the full version of White Paper here -
Moomoo is a next-generation one-stop digital financial service platform created by Moomoo Technologies Inc., a fintech company based in Palo Alto, California.
Moomoo integrates trading, market data, social networking with advanced features, such as AI-powered analytics and anomaly detection functions. It supports free online account-opening and provides access to the trading of stocks and ETFs in multiple global markets such as the United States, Hong Kong SAR, Singapore, and Australia. Moomoo and its brand affiliates also offer rich investor education content and an interactive online community with 18 million users in more than 200 countries globally.
Moomoo's parent company is the Nasdaq-listed fintech company Futu Holdings Limited ("Futu"), which is headquartered in Hong Kong. Futu's subsidiary is also one of the largest brokerages in Hong Kong. On March 8, 2019, Futu was listed on the Nasdaq (symbol: FUTU).
For more information, please visit the moomoo official website at www.moomoo.com.
About Futu Holdings Limited
Futu Holdings Limited ("Futu") (Nasdaq: FUTU) is an advanced technology company transforming the investing experience by offering a fully digitized brokerage and wealth management platform. Futu provides investing services - including stock trading and clearing, margin financing, wealth management, market data and information, and interactive social features for Hong Kong, US and China Connect stocks - to individual investors through its proprietary onestop digital platforms, Futubull and moomoo. Futu also provides Employee Stock Ownership Plan (ESOP) solutions and IPO distribution services through its enterprise service brand FUTU I&E, with a focus on providing employee stock ownership plans to corporate clients.
Futu aims to become an influential financial services platform globally, by building a complete financial technology ecosystem with the mission of "making investing easier and more collaborative". For more information about Futu Holdings, please visit the company's official website www.futuholdings.com.
SOURCE moomoo Inc.