- Melbournian retail investors more likely than average Aussie to invest in dating apps and cannabis stocks
- Sydneysiders prefer luxury stocks like Kering SA, owner of Gucci, Balenciaga and YSL
- ‘Perthlings’ three times more likely to invest in top mining stocks such as BHP
Retail investors in Melbourne are more likely than the average Aussie investor to back dating apps and cannabis-related stocks, while Sydney-based retail investors are more likely to invest in luxury and fast food stocks, according to research from trading and investing platform eToro. We analysed the stock holdings of major cities such as Melbourne, Sydney, Perth and Brisbane. These were then compared to our Australian user base as a whole, to determine which companies were the most ‘over- or under-indexed’ among users in Australia’s biggest cities.
Melbournians chasing love and leaves
Retail investors living in Melbourne are 159 per cent more likely than the average Aussie to invest in dating app Bumble Inc. In fact, multiple matchmaking firms appear in the list of the city’s most over-indexed stocks, with Melbournians also more likely to invest in Match Group (59 per cent), the parent company behind dating apps Tinder and Hinge.
Cannabis-related stocks are also among Melbourne’s most over-indexed companies, with Melbournians 98 per cent more likely than the rest of the country to invest in SNDL, a licensed producer that crafts small-batch cannabis. Melbournians are 46 per cent more likely to invest in Cronos Group as well, which engages in the production and distribution of cannabis.
Sydney, the capital of luxury and convenience
According to the data, retail investors from Sydney are more focused on a life of luxury. They are more than twice as likely as the rest of Australia to invest in Kering SA (127 per cent over-indexed), the company behind luxury brands such as Gucci and Balenciaga. Sydney-siders are also 68 per cent more likely to invest in Christian Dior, suggesting the city’s investors have expensive tastes.
Despite a clear preference for luxury brands, Sydney retail investors are no strangers to quick and cheap meals. Fast food brands Chipotle (74 per cent) and Domino’s Pizza (60 per cent) are among the city’s most over-indexed stocks.
Josh Gilbert, Market Analyst at eToro, said: “This data reflects how local economies and cultural factors influence investment choices. For instance, Melbourne’s interest in innovative and emerging markets contrasts with Sydney’s inclination towards established luxury and consumer brands. It suggests that Melbournian investors are willing to embrace new trends and technologies, with a slightly higher appetite for risk.”
Perth’s mining mania
Looking at Perth, the capital city of the mining region of Western Australia, it is no surprise that the city’s investors hold a massive preference for mining stocks. They are almost three times more likely than the average Aussie to invest in Mineral Resources Limited (267 per cent over-indexed). BHP Group (240 per cent), Rio Tinto Group (146 per cent) and Pilbara Minerals (128 per cent) are also among the most over-indexed firms, with a notable 10 per cent of the city investing in Pilbara Minerals.
Healthcare at the heart of Brisbane’s investors
Brisbane’s retail investor population are also no stranger to mining and oil stocks, with TotalEnergies SE (133 per cent), Enbridge Inc (120 per cent), BHP (107 per cent) and Rio Tinto (81 per cent) all appearing in the city’s most over-indexed stocks.
With the city known as the healthcare hub of Queensland, with over 100 health and biotech facilities, Brisbane-based investors also lean towards healthcare-related stocks, particularly biotech and pharmaceutical companies. Local retail investors are significantly over-indexed in eHealth Inc, a health insurance company (174 per cent), AstraZeneca (145 per cent), Amgen Inc (143 per cent) and Novo-Nordisk (72 per cent).
“Investing in what you know is the mantra of many of the world’s successful investors, including Warren Buffett. Therefore it’s great to see that investors are using the same approach. Investors seem to be leveraging their local knowledge and market familiarity, which can provide an edge, especially given how important it is to understand how a business makes its money.
“It’s no wonder that Perth, being a major hub for the mining industry, has a high concentration of investors holding mining stocks. The city’s economic ties to this sector likely influence local investment preferences. Companies like BHP, Rio Tinto, and Fortescue Metals are mainstays in portfolios, reflecting confidence in the enduring value of natural resources,” says Josh Gilbert.
Examples of over-indexed stocks across Australia’s cities
Melbourne |
||
| Company | Description | % Over-indexed |
| Bumble Inc. | Social networking company | 159% |
| SNDL Inc | Pharmaceutical company | 98% |
| Match Group, Inc | Online dating service company | 59% |
| Cronos Group Inc | Cannabinoid company | 46% |
Sydney |
||
| Company | Description | % Over-indexed |
| Kering SA | Luxury goods company | 127% |
| Chipotle Mexican Grill Inc | Restaurant chain | 74% |
| Christian Dior | Fashion company | 68% |
| Domino’s Pizza Inc | Restaurant chain | 60% |
Perth |
||
| Company | Description | % Over-indexed |
| Mineral Resources Limited | Mining company | 267% |
| BHP Group Ltd | Mining company | 240% |
| Liontown Resources Limited | Battery Minerals producer | 218% |
| Rio Tinto PLC ADR | Mining company | 180% |
Brisbane |
||
| Company | Description | % Over-indexed |
| eHealth Inc | Health insurance company | 174% |
| AstraZeneca PLC ADR | Pharmaceutical industry company | 145% |
| Amgen Inc | Biotechnology company | 143% |
| TotalEnergies SE | Energy and petroleum company | 133% |
Source: eToro platform data April 2024
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