The engagement of retail investors is increasingly notable, with over 1.5 million buying or selling shares in 2022 and an average daily investment of $1.51 billion into U.S. stocks.
Interestingly, about 15% of these retail investors initiated their journeys in 2020.
To provide a clearer perspective on this trend, I’d like to share the most important retail investor statistics that are crucial to note immediately. 📈💰🌐
Retail Investor Statistics: The Key Data
- Over 1.5 million retail investors bought or sold shares in 2022.
- Every day, retail investors poured $1.51 billion into U.S. stocks.
- 69% to 84% of retail investors experience losses.
- Retail investors make up 10% of the 3,000 largest U.S. stocks’ daily trading value.
- About 15% of retail investors started in 2020.
- 95% of retail investors live outside of major financial centers and earn average wages.
- Retail investors now account for approximately 52% of global assets under management.
- Retail investors account for nearly 20% of stock market activity in the United States.
- Retail investors bought stocks worth $76 billion during a three-month period ending on May 24, 2022.
- Retail investors’ share of total trading volume rose from just above 10% in 2011 to over 22% in 2021.
Sources: (AMF, Yahoo, Coin Telegraph, Reuters, Contrary Research, Investing In The Web, Insider Inc, The Street.)
More Retail Numbers: Retail Statistics
2022 Witnessed 1.5 Million Retail Investors Dive into Share Trading.
Important takeaway:
| Insight from Data | Rationale |
| Retail investors became active stakeholders in the market | The participation of over 1.5 million retail investors in 2022 demonstrates a notable increase in market engagement from individual, non-institutional investors. |
| Financial democratization is potentially on the rise | Such a significant figure might indicate easier access to trading platforms, heightened financial literacy, or broader socio-economic trends encouraging personal investments. |
| The market landscape is more diverse and decentralized | With this influx of retail investors, the market dynamic possibly shifts towards a more pluralistic model, with power and influence spread across a larger base rather than being concentrated among institutional players. |
Source: AMF
U.S. Stocks Receive Daily Infusion of $1.51 Billion from Retail Investors.
Important takeaway:
| Insight from Data | Rationale |
| Retail investors exhibit profound daily financial engagement | A daily inflow of $1.51 billion underscores the scale and commitment with which retail investors are impacting the U.S. stock market. |
| The landscape of U.S. equities is witnessing a democratic shift | Such a significant daily investment suggests that the influence and footprint of individual investors in the U.S. equity market are more pronounced than ever. |
| The importance of retail sentiment cannot be underestimated | Given the massive daily capital flow, market analysts and stakeholders must prioritize understanding and gauging retail sentiment as it is evidently shaping market dynamics. |
Source: Yahoo
Losses Hit Between 69% and 84% of Retail Investors.
Important takeaway:
| Insight from Data | Rationale |
| A significant proportion of retail investors navigate choppy waters | With a range of 69% to 84% facing losses, it’s evident that retail investing, while offering potential rewards, carries substantial risks. |
| The market’s volatility and complexity challenge many | Such pronounced loss percentages highlight the unpredictable nature of the market and the steep learning curve many individual investors face. |
| Financial literacy and risk management are essential | Given the high rate of losses among retail investors, there’s an imperative need for enhanced financial education, robust risk-management tools, and informed decision-making in the retail investment arena. |
Source: Coin Telegraph
Retail Investors Contribute to 10% of Daily Trades in Top 3,000 U.S. Stocks.
Important takeaway:
| Insight from Data | Rationale |
| Retail investors contribute significantly to the daily liquidity of major U.S. equities | With 10% of the daily trading value in the 3,000 largest U.S. stocks, retail investors have established a notable footprint in the market, indicating their importance in driving liquidity and potentially affecting price movements. |
| A wave of new entrants emerged in 2020 | The fact that 15% of retail investors began their journey in 2020 suggests a pivotal year for financial democratization, possibly driven by increased market accessibility and socio-economic factors stemming from the pandemic. |
| The stock market dynamics are increasingly influenced by diverse participants | Given the influx in 2020 and their sizable daily trading share, retail investors are becoming a force to be reckoned with, making it essential for market analysts and stakeholders to understand and factor in retail sentiment and behavior. |
Source: Reuters
2020 Marked the Starting Year for 15% of Current Retail Investors.
Important takeaway:
| Insight from Data | Rationale |
| 2020 marked a watershed moment for retail investing | The fact that 15% of retail investors embarked on their investment journeys in 2020 underscores a significant influx in a single year. |
| Factors beyond mere market trends may have spurred this surge | Such a pronounced increase hints at broader socio-economic shifts, potentially driven by increased financial democratization, technological accessibility, or economic responses to the pandemic. |
| The new wave of investors reshapes market dynamics | With this fresh cohort entering the arena, there’s a renewed necessity to understand the behaviors, strategies, and sentiments of these novice investors as they integrate into and impact the larger financial ecosystem. |
Source: Contrary Research
95% of Retail Investors: Non-Metropolitan Dwellers with Average Earnings.
Important takeaway:
| Insight from Data | Rationale |
| Retail investment transcends traditional financial epicenters | The statistic that 95% of retail investors reside outside major financial centers challenges the notion that stock market participation is limited to the financially elite or those within bustling economic hubs. |
| The average wage earner is now a market participant | This insight emphasizes that stock market investing is no longer the exclusive domain of the affluent; average wage earners are now significant players in the financial arena. |
| Financial democratization is more pervasive than previously perceived | The broad geographical and economic distribution of retail investors underlines the increasingly accessible nature of modern investment platforms and tools, making the market more inclusive and diverse than ever. |
Source: Investing In The Web
Retail Investors Command 52% of Global Assets Under Management.
Important takeaway:
| Insight from Data | Rationale |
| Retail investors dominate the market. | With over half of the global assets under management attributed to them, retail investors play a predominant role in the global financial ecosystem. |
| Institutional investors no longer hold majority. | The shift indicates that power dynamics in asset management have changed, with institutional investors no longer being the prime movers. |
| The market is increasingly democratized. | A larger proportion of retail investors implies greater access and participation by the general public in global financial markets. |
Source: Yahoo
Retail Participation Accounts for 20% of U.S. Stock Market Activity.
Important takeaway:
| Insight from Data | Rationale |
| Retail investors are key players in U.S. stock market. | At 20%, their activity is significant and can influence market trends and movements. |
| Institutional and other entities dominate market activity. | Despite the notable activity by retail investors, 80% of stock market activity is driven by larger entities and institutional players. |
| The U.S. stock market is diverse in its participants. | The mix of retail and institutional participation indicates a multifaceted market landscape with varied interests and strategies at play. |
Source: Insider Inc
Retailers Snapped Up $76 Billion in Stocks in Three Months Leading to May 24, 2022.
Important takeaway:
| Insight from Data | Rationale |
| Retail investors exhibited strong purchasing power. | The acquisition of stocks worth $76 billion in just three months showcases the significant financial influence of this group in the market. |
| The period ending May 24, 2022, was marked by high retail activity. | Such a substantial purchase volume indicates an active and possibly bullish sentiment among retail investors during this time frame. |
| Retail participation can be a market trend indicator. | The concentrated buying activity could reflect or influence broader market sentiments and trends. |
Source: Reuters
Retail Trading Volume Share Leaps: 10% in 2011 to 22% in 2021.
Important takeaway:
| Insight from Data | Rationale |
| Retail investors’ influence in trading has doubled. | The ascent from just above 10% to over 22% demonstrates a substantial growth in retail investors’ trading presence over the decade. |
| The 2010s saw a democratization of trading. | This increase signifies broader market participation, possibly due to enhanced accessibility and platforms catering to retail traders. |
| Institutional dominance in trading volume is diminishing. | While still dominant, the increasing share of retail trading suggests that institutions’ relative hold on trading volume has reduced. |
Source: The Street
