Key Points
-
Retail investors now account for approximately 25% of total equities trading volume, a significant increase from the previous decade, as reported in “The Retail Investor report” for 2021.
-
Popular among retail investors on Robinhood, the Vanguard S&P 500 ETF (VOO) and SPDR S&P 500 ETF Trust (SPY) are the fifth- and ninth-most-held securities, respectively.
-
The Vanguard Total Bond Market ETF (BND), ranked tenth, offers a yield of over 4% and has become a safe-haven choice amid concerns over high stock valuations, as indicated by a Shiller P/E ratio above 40.
As of 2021, retail investors have significantly increased their presence in the stock market, making up around 25% of total trading volume. This rise has been notably observed within platforms like Robinhood, where investors are increasingly gravitating toward index funds such as the Vanguard S&P 500 ETF (VOO) and SPDR S&P 500 ETF Trust (SPY), ranked fifth and ninth in holdings, respectively.
Meanwhile, the Vanguard Total Bond Market ETF (BND) is now the tenth-most-held security on the platform, yielding over 4%, reflecting a trend among investors who are wary of lofty stock valuations indicated by an elevated Shiller P/E ratio surpassing 40. Such choices illustrate retail investors’ strategic pivots in response to market volatility.
