Key Points
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Retail investors now account for nearly 20% of average daily trading activity in the U.S. stock market, up from the low single digits before the COVID-19 pandemic. This surge is largely attributed to commission-free trading platforms like Robinhood.
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Robinhood regularly publishes a list of the most-owned stocks and ETFs on its platform, highlighting significant interest in exchange-traded funds (ETFs) among retail investors.
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The Vanguard S&P 500 ETF (VOO) and SPDR S&P 500 ETF Trust (SPY) are among the most popular ETFs, providing exposure to 500 large-cap U.S. stocks.
As retail participation in the stock market continues to grow, driven by platforms like Robinhood, these trends reflect a shift in investor behavior, with many opting for ETFs as a way to diversify portfolios effectively. Key funds, including VOO and SPY, encapsulate broader market performance, while international ETFs like the Vanguard FTSE Developed Markets ETF (VEA) and the Vanguard FTSE Emerging Markets ETF (VWO) offer additional avenues for diversification.
