Schwab Survey Reveals How ETF Investors View Markets
A new report from Schwab Asset Management illustrates where and how ETF investors will be allocating money over the next year.
The report, based on a survey of 2,200 people, uncovers stark generational differences when it comes to investing and risk appetite.
What Looks Good in 2025?
Asked where they plan to invest in the coming year, ETF investors lean toward domestic stocks, tech sector.
Asset Type Bullishness
- U.S. equities: 55%
- Cryptocurrencies: 45%
- Bonds: 44%
- Alternatives: 19%
Sector Bullishness
- Technology: 69%
- Growth stocks: 60%
- Value stocks: 56%
- Magnificent 7: 55%
Most Important Factors When Choosing an ETF
ETF investors prioritize total cost, low expense ratios.
- Total cost: 57%
- Low expense ratio: 52%
- How well it tracks its index: 51%
- Reputation of ETF provider: 51%
- Portfolio manager experience/track record: 51%
- Historical returns: 49%
Generational Differences
Boomers focus on cost while millennials prioritize index tracking.
Importance of total cost:
- Boomers: 63%
- Gen X: 58%
- Millennials: 52%
How well it tracks its index:
- Millennials: 55%
- Gen X: 49%
- Boomers: 47%
Younger Investors Embrace Innovation
Millennial investors are more likely to invest in crypto ETFs and alternatives.
Plan to invest in cryptocurrency:
- Millennials: 62%
- Gen X: 44%
- Boomers: 15%
Plan to invest in alternatives:
- Millennials: 25%
- Gen X: 17%
- Boomers: 11%
Appetite for Customization
Younger investors are more likely to invest with their values and use direct indexing.
Interested in aligning investments with values:
- Millennials: 56%
- Gen X: 37%
- Boomers: 21%
Likely to invest in direct indexing:
- Millennials: 80%
- Gen X: 67%
- Boomers: 35%
Investor Confidence
Millennials are optimistic about investing skills and taking higher risk while boomers have doubts.
I have the skills to outperform the market:
- Millennials: 66%
- Gen X: 55%
- Boomers: 44%
I prefer investments with higher potential returns/greater risk:
- Millennials: 61%
- Gen X: 57%
- Boomers: 51%
ETF Investors vs. Non-ETF Investors
ETF investors feel more optimistic and more confident than non-ETF investors.
I feel optimistic about the market:
- ETF investors: 73%
- Non-ETF investors: 62%
I'm confident my portfolio would recover from a deep recession/black swan event:
- ETF investors: 75%
- Non-ETF investors: 58%
I'm extremely confident I can meet desired investing outcomes:
- ETF investors: 49%
- Non-ETF investors: 30%
