The risk tolerance of younger investors has grown significantly since the start of the COVID-19 pandemic, according to the findings of the latest E-Trade Financial StreetWise quarterly tracking survey of experienced investors.
Fifty-one percent of Generation Z and millennial investors surveyed said their risk tolerance increased since the coronavirus outbreak, 23 percentage points higher than the total population, E-Trade said Wednesday.
Younger investors are “taking cash off the sidelines,” trading more often and optimistic of a quick economic recovery, E-Trade said.
Thirty-four percent of those surveyed under the age of 34 said they were moving out of cash and into new positions, 15 percentage points higher than the total population.
Meanwhile, 51% of those in the same age group said they were trading equities and 46% said they were trading derivatives more frequently since the pandemic, compared to 30% and 22% of the total population, respectively.
And although only 9% of young investors said their investment portfolios had recovered since the start of the pandemic, 50% said they thought it would happen in the next six months, compared to 33% of the total population.