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Gen Z Investors Opt For Global Stocks

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 40 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.”

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Mr Cheung said Gen Z investors love to use multiple technical tools on the Tiger Trade app to help with decision-making. The app offers real time stock quotes, multilingual customer service and 24/7 finance news updates. He said many 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:

RankingCodeCompanyIndustry
1NIONioElectric vehicles
2BILIBilibiliVideo sharing website
3BABoeingAerospace
4AAPLAppleTechnology
5GSXGSX TecheduTech-driven education
6CCLCarnival CorporationLeisure travel
7AMDAdvanced Micro DevicesSemiconductors
8PDDPinduoduoE-commerce
9JDJD.comRetail
10AALAmerican AirlinesAir travel

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