- 57% of US retail investors either hold AI-related stocks today or plan to in the future
- Over half of US female investors (55%) are open to using AI in portfolio management
- 65% of younger investors (18-34 years old) have exposure to AI stocks – the highest among all age groups surveyed
January 18, 2024: Female investors have outpaced male investors in their pursuit of incorporating AI into their investment portfolios, according to data from the latest Retail Investor Beat (RIB) from trading and investment platform eToro. The survey data reveals that 38% of female investors are currently invested in AI-related stocks, compared to 22% of male investors.
This pattern does not only apply to the stocks that female investors are holding, but also to the comfort in using AI tools such as ChatGPT to pick or alter investments in their portfolio. 55% of female investors surveyed in Q4 2023 currently use or are open to using AI to help manage their portfolio, surging from 33% in Q3 2023. This is a stark contrast to male investor AI habits, as willingness to use AI in portfolio management decreased from 60% in Q3 2023 to 41% in Q4 2023.
Commenting on the data, eToro US Investment Analyst Callie Cox, said: “Following a year of AI innovation and growth, female investors are taking advantage of the opportunities AI offers for diversifying and managing their portfolios. Investors are quickly becoming more comfortable with AI, which has the potential to drive forward a new phase for the sector.”
Nearly one-third (32%) of retail investors hold AI-related stocks, and a quarter (25%) of investors plan to in the future. As digital natives with a knack for new-age technology – and an eye for fresh investment opportunities – younger investors (18-34 years old) have the biggest appetite for the AI sector, with 65% currently having exposure to AI-related stocks. This is compared to 58% for 35-44 year olds, 37% for 45-54 year olds and 9% for investors aged over 55.
While investors in the 35-44 year old age range fall slightly short of younger investors when it comes to AI stock exposure, they do exhibit the largest appetite for using ChatGPT-style tools to help pick investments. 82% of investors in this group are currently using or open to using AI for portfolio management, demonstrating a willingness to embrace AI like their younger counterparts and making a demographic to watch as the AI sector grows. On the flip side, investors 55+ showed the most aversion to AI tools, with 66% saying they would not use AI technology in their portfolio.
Cox adds: “It doesn’t surprise me that younger investors have the highest exposure to AI-related stocks. Yet now, we’re also seeing older investors expressing openness to using AI in their portfolio management tactics. As AI becomes more mainstream, options for using the technology in day-to-day financial management will become more appealing for investors and offer new avenues for the sector to expand.”
Investors were also asked which sectors they are most likely to prioritize in the coming months. The tech sector led the way, with 14% of investors indicating they are most likely to increase their investments in this industry. This was followed by financial services (11%) and real estate, healthcare and energy (all 9%).
While US investors as a whole have their eyes on the tech and financial sectors, one age group in particular is placing a higher emphasis on the financial industry. As they hit their investing stride, younger investors (18-34 years old) are the most likely to increase investments in the financial services industry (24%) than any other age group, thus demonstrating a higher level of opportunism than older investors following a tumultuous 2023 for the sector. This was compared to 16% for 35-44 year olds, 9% for 45-54 year olds and 6% for investors over 55, signaling that these age groups may be a bit jaded following times of economic hardships that occurred before younger investors entered the market.
Cox continues: “Tech has long been the sector to watch for retail investor activity, but it’s very telling that younger investors are attracted to the financial services sector following the banking industry’s rough 2023. These investors are willing to take on more risk, and they see a sector that’s been unfairly hammered by high interest rates. Younger investors are becoming more sophisticated, and they’re learning to look for value in markets. ”
ENDS
Notes to editors
About this report
The latest Retail Investor Beat was based on a survey of 10,000 retail investors across 13 countries and 3 continents. The following countries had 1,000 respondents: UK, US, Germany, France, Australia, Italy and Spain. The following countries had 500 respondents: Netherlands, Denmark, Norway, Poland, Romania, and the Czech Republic.
The survey was conducted from November 27th – December 8th 2023 and carried out by research company Opinium. Retail investors were defined as self-directed or advised and had to hold at least one investment product including shares, bonds, funds, investment ISAs or equivalent. They did not need to be eToro users.
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