New Survey Sheds Light On Active Traders - ETFs Highly Valued With A Particular Interest In Technology And Artificial Intelligence

Understanding the mindset of active traders is crucial for anyone involved in the markets. A new survey conducted by the Harris Poll took the pulse of American traders. The survey, commissioned by Direxion, a provider of thematic and leveraged ETFs, offered valuable insights into the preferences and behaviors of traders in the market.

ETFs

The survey’s data indicates that ETFs continue to be a staple in the portfolios of active traders, with 50% reporting ETF holdings in 2023. This number is holding steady – last year's number sat at 49% – but, critically, 42% of respondents increased their ETF allocation over the past year, reflecting a growing interest in these versatile investment vehicles.

A noteworthy trend is the adoption of leveraged ETFs, attracting 15% of active traders this year.

Generational Trends

The survey points to intriguing generational differences in the perception of ETFs. Gen Z and Millennials, express a significant appreciation for ETFs. While 52% of this demographic find such ETFs "very valuable" for their investment goals, only 36% of Gen X share this sentiment. Despite differing perceptions, similar proportions of Gen Z/Millennials actually hold ETFs in their portfolios.

Preferences And Beliefs

Active traders’ primary motivator in the market was "potential income and excess returns", selected by 48% of respondents.

Most traders desire direct control, with 59% saying they saw benefits to active participation due to their ability to make timely decisions.

Technology and AI:

Staying ahead of the curve is crucial to many active traders with significant portions of active traders seeing Technology (61%) and AI and Robotics (45%) as providing the most value in the next 12 months.

And AI and Technology are increasingly seen not just as good investments, but as tools to help make good investments. 60% of active traders are currently using or have used AI/robo-advisors in their investment planning, strategy, or execution and 71% plan to increase their use of AI/robo-advisor tools in the next two years.

The Survey 

The survey was conducted online in the U.S. by The Harris Poll. It involved 500 U.S. adults aged 18 years or older with at least $25,000 in investable assets.