Key Points
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Approximately 30 million retail investors opened new brokerage accounts during 2020 and 2021.
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Retail investors accounted for 25% of total equities trading volume in 2021, nearly double the share from the previous decade.
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Nvidia is the most held stock on Robinhood, with shares rallying 1,200% since the beginning of 2023.
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Tesla, Apple, Amazon, and Microsoft are also among the top five stocks held by retail investors on Robinhood.
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The Vanguard S&P 500 ETF is the most popular ETF for retail investors, noted for its low expense ratio of 0.03%.
The rise of the internet in the mid-1990s empowered retail investors, leading to significant growth in brokerage account openings, particularly with platforms like Robinhood, which offers commission-free trades and fractional shares. A report indicates that retail investors collectively held a remarkable 25% of total equities trading volume in 2021.
As of 2023, Nvidia stands out as the top-held stock on Robinhood, experiencing a staggering 1,200% increase in shares. Additionally, Tesla, Apple, Amazon, and Microsoft are highly favored among retail investors, with many also investing in the Vanguard S&P 500 ETF, which has a competitive expense ratio of just 0.03%.
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