DriveWealth News

DriveWealth’s 2Q Retail Trends Report

By July 14, 2021 July 27th, 2021 No Comments

Q2 2021 Retail Investing Already Outpacing 2020 Totals

New research from DriveWealth cites continued retail investor engagement in the second quarter


Chatham, N.J., July, 14, 2021 – Trading volumes and the number of trades in the first half of 2021 surpassed all of 2020, according to
new research released by DriveWealth, LLC, a leading global brokerage infrastructure platform. First half activity was much higher than 2020, despite retail investors temporarily stepping away from their screens in April and May to start re-engaging with real life as pandemic restrictions lifted and vaccination rates rose. 

DriveWealth’s Q2 Global Retail Trends Report is based on aggregated data from millions of retail investors around the world who trade fractional shares of U.S. equities through a network of global partners, including: Revolut, MoneyLion, Stake, Hatch, and Unifimoney, to name a few.

Retail investors were still engaged in the second quarter—new account openings increased 15% in the quarter, with steady increases month-to-month, driven largely by younger investors. DriveWealth saw a 20% increase in AUM for the second quarter, outpacing the markets.

“The retail revolution that began last year marked the beginning of a new era of investing—and we saw that continue throughout the first half of 2021,” said Bob Cortright, founder and CEO DriveWealth. “As digital wallets make it easier for consumers to seamlessly invest in the brands they know, we expect these trends to continue. The future is mobile, transactional and fractional, and we’re proud to be the engine that powers our partners’ investing products— driving engagement and improving financial literacy across all customer segments and geographies.”

95% of trades on the DriveWealth platform in the quarter had a fractional component, showing how fundamentally important it is for retail investors to invest what they can afford, in terms they understand—$1 or 100 rupees. While trading volume slowed in April and May, following the first quarter’s record-setting activity, the DriveWealth platform saw a 22% increase in June’s trading volume over the previous month. The overall markets also experienced a surge of activity in June, with retail investor inflows into U.S. stocks reaching a record $28 billion. 

Most traded

The so-called “meme stocks” were top-of-mind with global retail investors, as AMC Entertainment Holdings Inc. (AMC) was one of the most traded symbols across all regions. GameStop Corp. (GME) also continued to garner interest across the globe. A newcomer to the scene, Coinbase (COIN), also made an impact with retail investors as cryptocurrency trends continue to pick up steam.

Global Top Traded Symbols
U.S. (self-directed) U.S. (advised) APAC LATAM EMEA
1 AMC VOO TSLA AAPL AMC
2 TSLA VTEB AMC TSLA TSLA
3 AAPL VXF GME AMZN GME
4 AMZN SUB AAPL DIS NIO
5 GME VEA PLTR COIN SPCE
6 COIN VWO AMZN AMC AAPL
7 WMT VXUS MSFT MSFT COIN
8 NIO DGRO COIN FB PLTR
9 DIS VYM NIO VNQ BB
10 NKE VGT VOO KO AMZN

 

About DriveWealth

A pioneer in fractional investing and embedded finance, DriveWealth has built an API-driven, cloud-based brokerage platform that is transforming the investment landscape by democratizing access to U.S. equities for investors domestically as well as abroad. With more than 100 partners servicing over 150 countries around the world, DriveWealth’s mission is to reshape retail investing by enabling banks, global brands, and fintechs to provide investment access and advice to underbanked and underserved customers that was previously only available to the wealthy. For more information, please visit drivewealth.com.