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Millennials Make Their Mark, Highlighting a Big Shift in the Investing Landscape According to New Broadridge Study

Published: 2021-04-14 10:45:00 ET
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Widest data study ever of the retail investment marketplace delivers unprecedented evidence-based insights into investors' purchase of U.S. equities, mutual funds and ETFs

NEW YORK, April 14, 2021 /PRNewswire/ -- A much broader range of Americans are investing and engaging in U.S. financial markets, with Millennials, as well as households with the smallest amount to invest, growing in influence from year-end 2017 through June 30, 2020, according to a new quantitative study released by Broadridge Financial Solutions, Inc. (NYSE: BR), a global Fintech leader.

New Broadridge Data Study: Key Trends Impacting U.S. Investors

This study, the first-of-its kind and scale – Broadridge Insights on U.S. Investors – provides unprecedented evidence-based data and observations of investors who buy mutual funds, ETFs and equities through financial intermediaries. The study covered tens of millions of U.S. investor households and billions of data points, providing a unique perspective across generations, geography, educational attainment, channels, investment products, and wealth tiers.

"We are all witnessing an unprecedented and accelerated democratization of U.S. investing," said Bob Schifellite, Broadridge's Investor Communication Solutions President. "The signs are undeniable as younger investors, particularly Millennials, grew as a percentage of investors studied from 9% to 14% during this period. Additionally, households with the smallest amount to invest, referred to as the Mass Market, grew in influence from 30% to 38% of investing households. Many are investing using cost-effective ETFs, and more have broader access to low-cost institutional shares, highlighting a changing investing landscape."

Key Findings include:

  • Millennials are up-and-comers in the market

Millennials (born 1981 – 1996), the fastest-growing generation in numbers of investors studied, will continue to grow within the Mass Market segment and beyond. Millennials grew as a percentage of overall U.S. investors studied from 9% to 14% over the period and Gen X (born 1965 – 1980) grew from 24% to 27%.

Boomers (born 1946 – 1964) decreased as a total percentage of investors studied from 46% to 43% and the Silent Generation (born 1928 – 1945) also declined as a percentage of investors from 20% to 14% – but both still comprise 57% of the number of investors analyzed across the generational segments studied.

  • Mass Market rise

The Mass Market, defined as households with less than $100,000 in investable assets, grew in influence with a rising share of households and Assets Under Management (AUM). During the study period, the Mass Market grew from 30% to 38% of households with Mass Affluent ($100K to