Investment Preferences by Generation in the U.S.
Different generations grow up with different values and different economic realities, causing investment preferences by generation to vary across the board.
The above graphic shows how different generations invest—from millennials to boomers—based on June 2023 survey data from Charles Schwab.
Which Generations Prefer ETF Investing and Personalization?
Which generation prefers ETFs the most, and which cares about investments that reflect their values?
In the table below, we show survey data from 2,200 American investors in 2023 surrounding their views on investing. Here are the shares of different generations that agreed with the following statements:
| Statement by Agreeable Share | Millennials | Gen X | Boomers |
|---|---|---|---|
| ETFs are my investment vehicle of choice | 89% | 78% | 67% |
| I'm extremely confident when choosing ETFs | 58% | 41% | 29% |
| It's extremely important that my investmentsalign with my beliefs & values | 57% | 36% | 30% |
| I'm very likely to further personalize myportfolio in 2023 | 51% | 36% | 21% |
Millennials, who are born between 1981 and 1996, have the strongest preference for ETFs. They also are the most confident when choosing these types of investments.
In addition, 57% said that it was extremely important for their investments to align with their values, which are more individualistic. This was nearly double the share of those in the baby boomer generation, born between 1946 and 1964.
In line with this trend, other personalization features appealed to millennials, while this factor dropped with each subsequent generation significantly.
“Investors’ desire to have more control and alignment of investments with their personal views is a major long-term shift that is still in the early innings”
-David Botset, Head of Equity Product Management and Innovation at Schwab Asset Management
The post Charted: Investment Preferences by Generation in the U.S. appeared first on Visual Capitalist.