UK retail share traders are increasingly choosing to invest in ETFs and funds instead of trading individual stocks, according to a recent study by ETP provider GraniteShares.
Individuals who trade shares are increasingly choosing to trade ETFs and funds instead of individual stocks, research by an ETF provider indicates.
Almost a third of retail participants in the survey who regularly trade shares said they planned to decrease their holdings in individual stocks and focus on ETFs and funds for the rest of the year.
Just 11% of the 1,078 surveyed traders currently own ETFs or similar exchange-traded products (ETPs), with men (15%) twice as likely as women (8%) to hold them.
Approximately 16% of the respondents intend to invest more in ETFs and funds in the year ahead, while 7% will increase their investment only in ETFs and 7% in funds, according to the research published by GraniteShares and which was carried out in November last year.
The findings suggest that ETFs are gaining in popularity and may indicate that the ETF market among retail traders is maturing.
Will Rhind, founder and CEO at GraniteShares, said: “There are signs of a growing switch away from investing in individual stocks among regular share traders as they look to other ways of investing, such as ETFs and funds.”
The research further found that about a quarter of regular share traders in the UK currently use leveraged ETPs – particularly long leveraged products. They also liked unleveraged short ETPs.
The study revealed more than half of regular share traders know about using ETPs to profit from declining share prices, and 11% of them currently own ETFs or ETPs.
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