Among non-U.S. investors, the most traded tickers were TSLA, Tesla; HTZ, Hertz; AAL, American Airlines; AAPL, Apple; and CPE, Callon Petroleum.
Overall, DriveWealth argues that its analysis paints a picture of a cohort of savvy retail investors who by and large are not actively or frequently trading in and out of stocks and ETFs. These investors are averaging into the market as time and financial health allows. In the second quarter, the fintech saw:
- Increases in account openings, trades, volume and assets on Mondays as investors made decisions over the weekend.
- No evidence of any impact from Covid-19-related stimulus on account openings or deposits.
- 40% of total orders were placed at the open.
- Some profit taking did occur, as the buy/sell ratio of orders at the open declined from 80%/20% in the first quarter to 75%/25% in the second.
Retail investors may also recognize a rising threat of inflation risk, as some of the increased activity may be caused by shifting some of their cash and income assets towards growth to account for potential inflation, according to DriveWealth.
An ongoing shift towards retail investing is aided by ease of use, first-time access to investing, affordable entry points and lower fees. At the same time, the pandemic is accelerating consumer movement toward digital financial services and away from traditional forms of service and advice.
DriveWealth’s analysis is based on data collected from investment activity across its platform, which includes a network of global partners like Revolut, Stake and Hatch.