Data Snacks, Member Exclusive

Data Snack: Emerging trends in ‘the decade of the digital investor’

  • Inflows to U.S. equities in 2021 outpaced the previous 20 years.
  • Younger generations are leading the charge when it comes to fractional investing.

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Data Snack: Emerging trends in ‘the decade of the digital investor’

Retail investment had been on an upward trajectory since before COVID-19 became a thing, though admittedly, the pandemic got more people to invest. In 2021, retail trading made up 25% of daily average volumes relative to institutional trading. For comparison, in January 2020, retail trading made up 17.1% of the market. Behind this volume are digital investment platforms that have developed ecosystems where stock trading has become as simple as ordering food. In addition, providing consumers the tools to enable fractional trading has made it easier to enter the market.

DriveWealth, an embedded investment platform that enables 15 million users worldwide to invest in U.S. equities, called the current decade “undoubtedly the decade of the digital investor” in its recent DriveTrends report

The report, based on global customer data, argues that global investors have a growing appetite for American stocks. The S&P 500 index revealed that in 2021, there was almost 29% return and double-digit gains across all 11 sectors. In addition, the report makes a point that fractional trading opens financial opportunities, which in turn drives consumer behavior. The company’s data show these trends in action.

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