ETF trends among retail investors: Insights from the US

19 August 2019 | Topical insights



Retail investors in Europe have yet to truly embrace ETFs. But more and more US retail investors are finding a place for them in their portfolios.

New Vanguard research examines the demographics of these ETF investors in the US and looks at what factors are driving ETF adoption.

We find that over the last five years, the number of households using ETFs more than doubled. There are distinct differences among groups of investors. It’s newer (and younger) investors who use them as their primary investment vehicle, while more established investors (usually older and more affluent) tend to use them in conjunction with other investments.

Asset class exposure also varied among the groups, although equities are by far the favoured asset class for Vanguard’s ETF investors.

These fascinating insights offer food for thought to the investment industry in Europe. Will similar trends play out across the region?

Early ETF adoption among self-directed investors


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