43% of survey respondents cite long-term security as the top reason for investing in ETFs
24 October 2023 – eToro, the trading and investing platform, is today announcing the launch of free and state of the art ETF courses on the eToro Academy, made possible through a new partnership with iShares by BlackRock, the largest ETF provider in the world. With a global line-up of 1300+ ETFs and $3.12 trillion in assets under management as of September 30, 2023, iShares unlocks opportunity across markets to meet the evolving needs of investors.
This co-branded educational content features exciting and informative courses in ETF investing, strategies and explainers. This partnership also increases access for investors to financial resources like webinars, podcasts, live events, and more, that empower them to grow their knowledge and wealth as part of a global community of investors. The ETF courses provide accessible and relatable content to help retail investors understand the role that ETFs can play in their portfolio.
Investors are approaching their portfolios with their future financial goals in mind, new survey data from eToro finds that 55% of respondents are investing to provide long-term security, while other top reasons for investing include achieving financial independence (46%) and supplementing income (40%). The survey of U.S. retail investors found women are slightly more focused on long term security than men: 60% of women cite long-term security as their primary investing goal compared to 49% of men.
The research findings highlight that many retail investors are taking a long term, thoughtful approach to their investing strategy. 31% of respondents say that despite current market conditions, they’re sitting tight and not making any new investments at the moment; 28% said they’re actually looking for opportunities to buy any dips in the stock market.
Lule Demmissie, eToro US CEO commented, “Our customer base is increasingly ambidextrous. They are taking a long term approach to their investment goals using ETFs and other buy and hold strategies while also making tactical, more short-term decisions when the right opportunities arise by ‘buying the dip’ or trading options when it is suitable for them.”
“ETFs are a transformational financial instrument that can provide low-cost, easy access to a multitude of investment themes and opportunities. ETFs help reduce the barrier to entry for so many investors who may be limited on time and resources, yet want to make sure they’re getting a piece of the investment pie.”
There is a clear need for greater education around ETFs: while three quarters of respondents (75%) said they could define ‘stocks’ without looking it up, only 28% could define ‘ETFs’ without looking it up. Moreover, 7% could not define any of the following terms – stocks, bonds, ETFs or options, underscoring the need for expanded education programs and resources.
Monique Le, Head of the iShares Digital Wealth and Retail Investor Business at BlackRock said, “The rise of the self-directed investor, fueled by advancements in technology and the democratization of finance, has empowered individuals to take more control of their own investments. And ETFs are the perfect vehicle for this moment. Thanks to their low-cost, flexibility, and the numerous types available, ETFs allow individuals to invest on their own terms. We are thrilled to be partnering with eToro to expand financial education and access to ETF investors.”
According to 51% of survey respondents, the biggest perceived barrier to investing is cost, followed by determining a strategy (47%) and having access to too much information without knowing how to determine what is credible (34%). This partnership furthers eToro and iShares mutual mission to close the investing knowledge gap. Through accessible, educational and meaningful content, eToro and iShares aim to set up the next generation of ETF investors for success.
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eToro is a social investing network that empowers people to grow their knowledge and wealth as part of a global community of investors. eToro was founded in 2007 with the vision of opening up the global markets so that everyone can trade and invest in a simple and transparent way. Today, eToro is a global community of more than 30 million registered users who share their investment strategies; and anyone can follow the approaches of those who have been the most successful. Due to the simplicity of the platform users can easily buy, hold and sell assets, monitor their portfolio in real time, and transact whenever they want.
Methodology
This survey of 2,000 U.S. retail investors was conducted from 1st September – 7th September 2023 by research company Appinio.
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