Skip to main content
logo
Financial Professional Login
Welcome
Log in for exclusive access and a personalized experience
Log in Sign up
Benefits of creating a free account
  • Customize our Guide to the Markets and unlock bonus slides
  • Utilize our award-winning Portfolio Construction and Retirement Planning Tools
  • Access expert commentary from Dr. David Kelly and more...
Hello
  • My Collections
    View saved content and presentation slides
  • Products

    Products

    • Mutual Funds
    • ETFs
    • SmartRetirement Funds
    • 529 Portfolios
    • Alternatives
    • Money Market Funds
    • Commingled Funds
    • Featured Funds

    Asset Class Capabilities

    • Fixed Income
    • Equity
    • Multi-Asset Solutions
    • Alternatives
    • Global Liquidity
  • Investment Strategies

    Investment Approach

    • ETF Investing
    • Model Portfolios
    • Separately Managed Accounts
    • Sustainable Investing
    • Variable Insurance Portfolios
    • Commingled Pension Trust Funds

    College Planning

    • 529 College Savings Plan
    • College Planning Essentials

    Defined Contribution

    • Retirement Solutions
    • Target Date Strategies
    • Startup and Micro 401(k) Plan Solutions
    • Small to Mid-market 401(k) Plan Solutions
  • Insights

    Market Insights

    • Market Insights Overview
    • Guide to the Markets
    • Quarterly Economic & Market Update
    • Guide to Alternatives
    • Market Updates
    • On the Minds of Investors
    • Principles for Successful Long-Term Investing
    • Weekly Market Recap

    Portfolio Insights

    • Portfolio Insights Overview
    • Asset Class Views
    • Equity
    • Fixed Income
    • Alternative Insights
    • Long-Term Capital Market Assumptions
    • Monthly Strategy Report
    • Sustainable Investing

    Retirement Insights

    • Retirement Insights Overview
    • Guide to Retirement
    • Principles for a Successful Retirement
    • Defined Contribution Insights
  • Tools

    Portfolio Construction

    • Portfolio Construction Tools Overview
    • Portfolio Analysis
    • Model Portfolios
    • Investment Comparison
    • Bond Ladder Illustrator

    Defined Contribution

    • Retirement Plan Tools & Resources Overview
    • Target Date Compass®
    • Core Menu Evaluator℠
    • Price Smart℠
  • Resources
    • Account Service Forms
    • Tax Planning
    • News & Fund Announcements
    • Insights App
    • Events
    • Library
    • Navigating market volatility
  • About Us
    • Diversity, Equity, & Inclusion
    • Sustainable Investing
    • Media Resources
  • Contact Us
  • Role
  • Country
  • Shareholder Login
    Hello
    • My Collections
      View saved content and presentation slides
    • Log out
    Financial Professional Login
    Welcome
    Log in for exclusive access and a personalized experience
    Log in Sign up
    Benefits of creating a free account
    • Customize our Guide to the Markets and unlock bonus slides
    • Utilize our award-winning Portfolio Construction and Retirement Planning Tools
    • Access expert commentary from Dr. David Kelly and more...
    Log out
    Search
    Search
    Menu
    You are about to leave the site Close
    J.P. Morgan Asset Management’s website and/or mobile terms, privacy and security policies don't apply to the site or app you're about to visit. Please review its terms, privacy and security policies to see how they apply to you. J.P. Morgan Asset Management isn’t responsible for (and doesn't provide) any products, services or content at this third-party site or app, except for products and services that explicitly carry the J.P. Morgan Asset Management name.
    CONTINUE Go Back
    1. Where are Millennials investing their money?

    • LinkedIn Twitter Facebook Line

    Where are Millennials investing their money?

    08/25/2021

    Jack Manley

    Through increased flexibility, an acceptance of nontraditional asset classes and the understanding that generations are not homogeneous, financial professionals will serve their future clients, and their practices, well.

    Jack Manley

    Jack Manley

    Global Market Strategist

    On the Minds of Investors

    08/25/2021

    With greater attention being paid to younger Americans by the investment management industry, financial professionals are increasingly curious about the “what”, “why” and “how” of Millennial money management.

    A major component of this conversation is understanding how and where younger Americans are investing, useful information when aiming to make a potential working relationship more fruitful. Below are a number of key takeaways on this front:

    • The “democratization” of investing has brought money off the sidelines
      As shown in the chart below, younger investors saw the greatest change in investment activity relative to pre-COVID 2020. Some of this is attributable to increased downtime during the pandemic; some is attributable to government stimulus; and some to the “democratization” of investing through low-cost app-based brokerage services – in fact, during the frothier period of 1Q 2021, the four major online brokerages accounted for nearly 30% of total U.S. equity market volume.1
     
    • Risk is king and investors are willing to get creative
      Equities are the largest holding for both Millennials and Gen Z, with a particular focus on tech (likely due to both familiarity and perceived growth potential). However, risk appetite extends beyond traditional assets: cryptocurrency investing is becoming more mainstream, with 40% of investors aged 18-40 reporting a crypto-holding; and options are playing a bigger role in portfolios, with just under one-third of investors aged 18-40 reporting an option position. 2 In fact, some of the spikes in investment flows seen below, which often coincide with the “meme-stock” frenzy, are likely tied at least in part to options trading.
     
    • ESG matters, but not exclusively
      ESG – Environmental, Social and Governance – is becoming more relevant in the investment world. However, despite being more politically engaged than in the past, younger investors are less interested in ESG than some may assume. 3Research shows that some of this could be due to a lack of understanding of what ESG is, although as education increases, this issue should fade. Nonetheless, it also seems clear that many younger investors are unwilling to give up performance to achieve social goals, especially given stretched valuations and the massive student debt burden. In other words, ESG integration may be considered a nice feature, but it is not a priority as of yet.

    As the investment management industry gains greater traction with Millennials and Gen Z, the ability to tailor investment solutions to generational needs and wants will be critical. Through increased flexibility, an acceptance of nontraditional asset classes and the understanding that generations are not homogeneous, financial professionals will serve their future clients, and their practices, well.

     

    Younger Americans have been more active in investing in 2021

    Investment flows by age group, indexed to 100, weekly

    A line graph showing investment flows by age groups 18 to 25, 25 to 40, 40 to 65, and 65+, indexed to 100, weekly from February 2020 to August 2021.

    Source: J.P. Morgan Asset Management, based on internal Chase data.

     

    1 J.P. Morgan Index Research, based on company filings and SEC 606 disclosures. Brokerages are: E*TRADE, Schwab, TD and Robinhood.

    2 Based on April 19, 2021 survey conducted by the Motley Fool of 1,400 of American adult stock investors.

    3 Harvard University Kennedy School Institute of Politics, March 2021 survey of 2,513 Americans under the age of 29. 36% of respondents reported themselves as “politically active.”


    09mp212408152643

    • Investment Goal
    • Investing Principles

    EXPLORE MORE

    On the Minds of Investors

    What investment questions are on the minds of investors? Explore the questions investors ask frequently and find answers at J.P. Morgan Asset Management.

    Read more

    Guide to the Markets

    The J.P. Morgan Guide to the Markets illustrates a comprehensive array of market and economic histories, trends and statistics through clear charts and graphs.

    Read more

    Asset Class Views

    Get quarterly commentary and in-depth analysis on equities, fixed income and other asset classes, written by our senior investment teams.

    Read more
    J.P. Morgan Asset Management

    • Capital Gains Distributions
    • eDelivery
    • Fund Documents
    • Glossary
    • Help
    • How to invest
    • Important Links
    • Mutual Fund Fee Calculator
    • Accessibility
    • Form CRS and Form ADV Brochures
    • Investment stewardship
    • Privacy
    • Proxy Information
    • Senior Officer Fee Summary
    • SIMPLE IRAs
    • Site disclaimer
    • Terms of use
    J.P. Morgan

    • J.P. Morgan
    • JPMorgan Chase
    • Chase
    Opens LinkedIn site in new window Opens Youtube site in new window Opens Twitter site in new window

    This website is a general communication being provided for informational purposes only. It is educational in nature and not designed to be a recommendation for any specific investment product, strategy, plan feature or other purposes. By receiving this communication you agree with the intended purpose described above. Any examples used in this material are generic, hypothetical and for illustration purposes only. None of J.P. Morgan Asset Management, its affiliates or representatives is suggesting that the recipient or any other person take a specific course of action or any action at all. Communications such as this are not impartial and are provided in connection with the advertising and marketing of products and services. Prior to making any investment or financial decisions, an investor should seek individualized advice from personal financial, legal, tax and other professionals that take into account all of the particular facts and circumstances of an investor's own situation.

     

    Opinions and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. We believe the information provided here is reliable but should not be assumed to be accurate or complete. The views and strategies described may not be suitable for all investors.

     

    INFORMATION REGARDING MUTUAL FUNDS/ETF: Investors should carefully consider the investment objectives and risks as well as charges and expenses of a mutual fund or ETF before investing. The summary and full prospectuses contain this and other information about the mutual fund or ETF and should be read carefully before investing. To obtain a prospectus for Mutual Funds: Contact JPMorgan Distribution Services, Inc. at 1-800-480-4111 or download it from this site. Exchange Traded Funds: Call 1-844-4JPM-ETF or download it from this site.

     

    J.P. Morgan Funds and J.P. Morgan ETFs are distributed by JPMorgan Distribution Services, Inc., which is an affiliate of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the funds. JPMorgan Distribution Services, Inc. is a member of FINRA  FINRA's BrokerCheck

     

    INFORMATION REGARDING COMMINGLED FUNDS: For additional information regarding the Commingled Pension Trust Funds of JPMorgan Chase Bank, N.A., please contact your J.P. Morgan Asset Management representative.

     

    The Commingled Pension Trust Funds of JPMorgan Chase Bank N.A. are collective trust funds established and maintained by JPMorgan Chase Bank, N.A. under a declaration of trust. The funds are not required to file a prospectus or registration statement with the SEC, and accordingly, neither is available. The funds are available only to certain qualified retirement plans and governmental plans and is not offered to the general public. Units of the funds are not bank deposits and are not insured or guaranteed by any bank, government entity, the FDIC or any other type of deposit insurance. You should carefully consider the investment objectives, risk, charges, and expenses of the fund before investing.

     

    INFORMATION FOR ALL SITE USERS: J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide.

     

    NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

     

    Telephone calls and electronic communications may be monitored and/or recorded.
    Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our privacy policies at https://www.jpmorgan.com/privacy.

     

    If you are a person with a disability and need additional support in viewing the material, please call us at 1-800-343-1113 for assistance. 

     

    Copyright © 2022 JPMorgan Chase & Co., All rights reserved