Where do bright young Gen Z financial investors put their money?
Online stock brokerage Tiger Brokers, which has been operating in New Zealand since 2015, has analysed its 100,000+ Gen Z investors around the world and found their portfolios are made up of approximately:
- 45% long-term stocks such as Apple, Boeing, and Carnival
- 35% real estate investment trusts (REITs) and exchange traded funds (ETFs) across United States, Hong Kong and Singapore
- 10% high volatility stocks, such as Afterpay, Kodak, and Vaccinex
- 10% options, either call or put, into event trading strategy (e.g. annual report earnings vs forecast).
“Gen Z investors tend to create a globally diverse investment portfolio,” says Tiger Brokers New Zealand CEO Vincent Cheung, who heads a team of more than 45 people in Auckland.
Tiger Broker’s mobile and online trading platform, Tiger Trade, enables investors to trade in equities and other financial instruments on multiple exchanges around the world all in one integrated account.
Mr Cheung says Tiger Brokers research into its Gen Z investors – which represent 15% of the company’s 740,000+ customers worldwide – show they are balanced in their investment choices.
“Our figures show Gen Z investors have an 80:20 split between traditional stocks and real estate versus volatile stocks and options.
“If the market goes against the option investments, the investors will lose their option premium. However, if they are right, the potential return could be quite substantial.”
Mr Cheung said Gen Z investors love to use multiple technical tools on the Tiger Brokers’ app, Tiger Trade, to help with decision-making. The Tiger Trade app offers real time stock quotes, multilingual customer service and 24/7 finance news updates. He said many Tiger Brokers’ Gen Z investors choose to use the margin account rather than the cash account, to expand their portfolio with borrowed funds – also known as margin financing.
Victor Zhu, who is studying finance at the University of Auckland, is one of hundreds of New Zealand Gen Z users of the Tiger Trade app.
Mr Zhu was attracted to engage and invest in the stock market by a competition hosted by Tiger Brokers. “In that competition I was able to apply the knowledge I learned from my course into the real market. It also allowed me to learn trading strategies from other competitors and discuss the daily political issues and economic impact on society. It gave me the confidence to start trading and learn about wealth management through the stock market.”
Mr Cheung said the average fund deposited in a Gen Z Tiger Brokers trading account was US$3,435.
The top 10 shares loved by Tiger Brokers Gen Z investors are:
Video sharing website
Advanced Micro Devices
About Tiger Brokers
Founded in June 2014, Tiger Brokers, NASDAQ listed company, is an online stock brokerage. The company is committed to serving the best interests of stock investors and being a gateway to build their global portfolios. In 2017, the company was awarded "2017 Fintech 250" by CB Insights and shortlisted for "China Leading Fintech 50" for two years in a row by KPMG China.
Tiger Brokers (NZ) Limited (TBNZ) is a New Zealand registered financial service provider (FSP473106). Tiger Brokers' feature-rich online trading app is designed for self-directed investors to access the thriving stock markets of US, China and Hong Kong and soon Australia, to build global investment portfolios.
None of the information contained in this news release constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy. The information is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice or recommendation of any sort offered or endorsed by Tiger Brokers. Tiger Brokers also does not warrant that such information is accurate, up to date or applicable to the circumstances of any particular case. Any expression of opinion (which may be subject to change without notice) is personal to the author and the author makes no guarantee of any sort regarding accuracy or completeness of any information or analysis supplied. The authors and Tiger Brokers are not responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained here. The contents of this news release should not be construed as an express or implied promise, guarantee or implication by Tiger Brokers that clients will profit or that losses in connection therewith can or will be limited, from reliance on any information set out here.