Generational preference for ETFs confirmed in top 2024 buys

New analysis of 2024 stock purchases from trading platform and solutions provider, AUSIEX, has found a clear generational preference for certain investment products and companies, with younger clients all in on exchange traded funds (ETFs) in particular.

The data suggested that younger generations, such as Generation Z and Millennials, generally favoured passive funds that track the performances of indexes or offer the opportunity to invest in multiple stocks in one trade, such as ETFs.

Data from members of the older cohorts, Baby Boomers and Generation X, indicated that they preferred to directly select individual stocks to invest in.

AUSIEX also identified some differences in the top investment purchases made in 2024 among those who have a financial adviser compared to those who don’t, but more so in the chosen investment vehicle rather than the asset class.

Baby Boomers with a financial adviser bought BHP, Woodside, Woolworths, APA Group and Mineral Resources stocks; those without bought BHP, Woodside, Fortescue, Pilbara Minerals and Westpac.

The advised Generation X purchased stocks in BHP, Woodside, Xero, Woolworths and Dexus; those without purchased BHP, Fortescue, Woodside, Appen and DRO.

Among the younger generations, advised Millennials bought into BHP, Woodside, Woolworths, the Vanguard MSCI Index International Shares ETF and the Vanguard Australian Shares Index Fund; those without an adviser purchased stocks in Woodside, BHP, Pilbara Minerals, Fortescue and the Vanguard Australian Shares Index ETF.

Members of Generation Z with a financial adviser invested in the Vanguard Diversified High Growth Index ETF, the Vanguard Australian Shares Index ETF, Woodside, Mineral Resources and Woolworths; those without invested in the iShares S&P 500 AUD ETF, also the Vanguard Australian Shares Index ETF, Fortescue, BHP and the Vanguard MSCI Index International Shares ETF.