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- 60% of Millennials own value stocks.
- 50% of Millennials own penny stocks.
- While less than a third of Millennials own ESG stocks.
Younger generations are increasingly financially literate. A striking 62% of US citizens aged between 30 and 49 own at least some form of stock, while polls find Gen Z and Millenials are far more interested in investing than previous generations. But the true nature of their investments may surprise you.
Far from the ‘activist investors’ most media reports portray, younger people appear to be focused on the cost of their investments. Moneyzine.com can reveal that value stocks - those considered cheap relative to their fundamentals - are the most popular stock with Millennials. And 50% of all Millennials own at least one penny stock.
Cost over conscience
A new poll has revealed the most popular types of stocks amongst Millennials:
Previous polling had found that two thirds of Millennials and Gen Z said they were ‘very concerned’ about issues like carbon emissions and social inequalities - and would be willing to lose up to 10% of their investments to see companies improve their green credentials.
Yet with nearly twice as many Millennials buying Value, Growth and Dividend stocks than ESG stocks, these new findings suggest the reality is slightly different. Particularly striking is the popularity of penny stocks: younger investors appear to be interested in high risk, high reward products which lower the barrier to entry for investment.
While younger investors do believe in social and environmental issues, this data suggests that they are equally interested in long-term stability - as well as opportunities for cheaper investments.Jonathan Merry, CEO of Moneyzine.com
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