Binance report: Gen Z ETF trading share rose to 25%, individual stock holdings fell

Gen Z investors are accelerating their influx into ETFs, and the proportion of individual stocks holds declines.

According to data from Binance Research, Gen Z investors are increasingly participating in exchange-traded funds (ETFs), while significantly reducing individual stocks. The latest data shows that despite the slowdown in overall stock allocation growth, ETF inflows and trading volumes for this young group are on the rise.

Gen Z ETF trading activity climbs

In July, non-leveraged ETFs accounted for 21.9% of Gen Z's net equity inflows, up from 18.5% in June. In early August, ETFs accounted for 25% of Gen Z stock trading volume, compared with just 9.5% for millennials. The data shows that there are significant differences in investment strategies between different generations.

During the same period, the proportion of Gen Z individual stock holdings in net equity capital inflows fell from 77% to 74.2%. As ETF penetration increased, this proportion gradually declined. The increase in ETF trading volume was particularly significant in June, July and even August.

In July, Gen Z ETF inflows rose to 21.9%. Young investors preferred diversified investment portfolios, while individual stock holdings fell to 74.2%. In early August, ETF trading volume accounted for 25% of this group's stock trading volume, a significant increase from 9.5% for millennials.

As one of the world's largest cryptocurrency exchanges, Binance's influence in the traditional financial field is also expanding. The agency also observed differences in trading trends among different age groups. While Gen Z has increased its ETF allocation, millennials are still more focused on investing in individual stocks, with its ETF trading share only 9.5% in early August.

Investor Group| Proportion of ETF transactions in early August| Changes in ETF holders in July
Generation Z| 25%|+2.9%
Millennials| 9.5% |-4.5%
Generation X| not apply|-5.9%

Increased portfolio diversification

In June, ETFs accounted for 14.6% of Gen Z stock trading volume, but rose to 21.4% in July. Although the total net equity allocation of Gen Z fell by 17.4% month-on-month in July, ETF inflows fell by only 2%. At the same time, capital inflows from individual stocks fell by 20.4%, and capital inflows from leveraged products fell by 28.5%.

In July, the number of Gen Z ETF holders increased by 2.9%, while Millennial ETF holders fell by 4.5%, and Gen X fell by 5.9%. Data shows that Gen Z continues to increase diversified fund allocation, while older groups reduce participation.

Binance further reported that the trading frequency did not show that Gen Z investors generally adopted high turnover strategies. On average, members of the group perform 3 bStocks transactions and 8 direct stock transactions per month. Leveraged ETF trading activity remains limited, with 88.2% of Gen Z TradFi-Perps accounts not participating in leveraged or reverse ETF trading.

Micro Dictionary: bStocks is a platform for Binance to trade traditional stocks, allowing users to use digital assets as collateral to buy and sell listed stocks.

ETF demand remains strong despite the overall slowdown in stocks

Further analysis of account behavior shows that in July, 76% of Gen Z bStocks accounts were net stock accumulators, compared with 67% for millennials. In terms of direct stocks, 77% of Gen Z users increased their positions.

Multiple industry studies have shown that Gen Z investors are psychologically influenced by social media, emerging asset classes and fear of missing out on market opportunities. Research by the Financial Industry Regulatory Authority Foundation and the CFA Institute found that 37% of U.S. Gen Z investors view social media influencers as a key factor in their investment decisions.

However, Binance's report focuses on the actual capital allocation of investors once they enter the market. In July, diversified products such as ETFs showed resilience when inflows from individual stocks and leveraged funds weakened.

These latest changes also come after the overall significant growth in the U.S. ETF market. As of June 2026, the assets of the ETF industry reached US$15.70 trillion, an increase of 36.6% from US$11.49 trillion in June 2025. In the first half of 2026, net ETF issuance was approximately US$991.6 billion, up from US$542.7 billion in the same period last year.

Binance launched its direct equity products on a large scale in June, so the research period covers about two months of user data and specifically reflects the behavior of Binance TradFi participants rather than global investors.