Generational Investing: Z Generation Embraces Cryptocurrency, X Generation Leads in ETF Adoption

According to the Policygenius Financial Planning Survey, it was found that the younger Generation Z is more likely to own cryptocurrency than stocks, and they are also more likely to seek help on social media for financial issues. On the other hand, Generation X and Baby Boomers primarily hold real estate and stock assets. Bloomberg analysts state that Generation X is a significant driver of ETFs, with the ETF boom in Taiwan particularly impressing them.

Americans Own More Cryptocurrency Than Stocks

Policygenius commissioned YouGov to survey 4,063 Americans aged 18 and above. It was found that 20% of Generation Z (18-26 years old) own cryptocurrency, which is higher than the 18% who own stocks. Meanwhile, 22% of Millennials (27-42 years old) own cryptocurrency, which is not far from the 27% who own stocks and 24% who own real estate. When facing financial problems, there is an 8% likelihood that Generation Z and Millennials will seek help from social media, much higher than the 2% for Generation X and Baby Boomers.

Generation X Drives ETF Investment

According to statistics, Generation X and Baby Boomers mainly hold real estate and stock assets. Bloomberg ETF analyst Eric Balchunas also pointed out that Generation X is a major driving force behind ETF investments, especially in Taiwan, where he has seen remarkable performance of high dividend ETFs. He estimates that by the end of the year, over a third of the population in Taiwan will own ETFs.

Balchunas has praised Taiwan's ETFs multiple times before. The fundraising scale of 00940 in Taiwan has reached as high as 175.2 billion NTD, equivalent to about 5.6 billion USD. Bloomberg estimates that after 30 trading days, it will reach a scale of 8 billion USD. This also indicates that 00940 is likely to surpass the record of 7.2 billion USD set by the Bitcoin spot ETF IBIT launched by BlackRock after one month of trading.

Eric Balchunas is surprised by the enthusiasm of Taiwanese people for dividend-paying ETFs, which only account for 4% of the U.S. market.

Bloomberg Bitcoin ETF Analyst Amazed by Taiwan's Craze for 00939, 00940: Can't Believe It's Real

Smells Like Equity Income: GenX is a key driver of ETF flows, esp in Taiwan where they are buying up dividend stock ETFs like crazy. @RebeccaSin_SK is estimating that 1/3 of the population (most of which are over 40) could own an ETF by end of year https://t.co/npWJWA4928

— Eric Balchunas (@EricBalchunas) April 9, 2024