DALLAS--(BUSINESS WIRE)--Apex Clearing, the custody and clearing engine powering the future of wealth management, released its Q4 2020 Apex Millennial 100 report, an analysis of the top 100 stocks owned by millennial investors using Apex partner applications as of December 31, 2020. The report analyzed more than 1.8 million investment accounts owned by U.S.-based investors with an average age of 32 years.
The perfect storm of zero commissions, COVID-19 and fractional trading made 2020 a record year for individual investors – with year-over-year trading volume up 119% on the Apex platform in 2020. As U.S. stocks rocketed to all-time highs in Q4, millennials continued to put money to work into the market. The Q4 Apex Next Investor Outlook looks back at individual investor’s record-breaking year.
“Millennial investors caught the financial services industry’s attention in 2020,” said Bill Capuzzi, CEO of Apex Clearing. “In the final months of the year, we saw millennials start to take profits from their pandemic bets in beaten-down travel stocks and high-flying work-from-home names to position themselves for the future with increased interest in vaccine leaders Moderna and Pfizer.”
Themes in the Q4 Apex Millennial 100 include:
- Vaccines are millennials’ next COVID-19 bet: Across generations, vaccine names rose in the rankings. Moderna (#27) rose 11 spots in the Millennial 100 while Pfizer (#20) rose 39 spots as investors repositioned their portfolios for 2021. Following positive vaccine news in the final months of 2020, Millennials took profits from earlier COVID-19 trades. Travel names like Carnival Cruise Lines (#24), Royal Caribbean (#61), Delta Air Lines (#22) and United Airlines (#33) fell in the rankings as did work-from-home names like Zoom (#26) and DocuSign (#82) during the Q4 rally.
- Tesla (#1) speeds further ahead, NIO (#4) cracks Top 5: Millennial investors’ infatuation with Tesla over the past year continued in Q4. At year-end, Tesla made up more than 20% of millennials’ Top 100 holdings, nearly twice the roughly 11% millennials have in Apple (#2). China’s NIO ended the year as Millennials' #4 most popular holding as investors meaningfully increased their positions in the stock in Q3 and Q4.
- Younger investors bet on SPACs: Clover Health (#35) and Fisker (#87) made Millennials’ Top 100 list in Q4 – and ranked even higher in the top holdings of Gen Z. Despite interest from younger investors, neither name cracked the Top 100 holdings lists for Gen X or Baby Boomers, as older investors appear to be more comfortable investing in traditional IPOs.
- Millennial account balances outpace all generations: Millennials’ account balances grew by an astonishing 24% in Q4 as 82 of the Top 100 holdings ended the quarter up.
Year-over-year trends on the Apex Platform poised to continue include:
- Gen Z enters the market: Generation Z account openings were up 168% in 2020 as these young investors placed outsized wagers on Disney, Carnival Cruise Lines, American Airlines and United Airlines compared to other generations. Millennial account openings were up 135% year-over-year.
- Fractional trading becomes mainstream: Fractional trading volume ended 2020 up 61% year-over-year among all investors. High-flying tech names, including Apple, Amazon, Netflix, Microsoft and Tesla, were the top single stock fractional trades.
“The influx of Gen Z investors into the markets in 2020 is a trend that has the potential to continue for years to come, thanks to the democratization of trading happening in the market now,” said Tricia Rothschild, President of Apex Clearing. “Technology, zero-commissions and fractional trading make accessing markets easy at any age and income level. As the financial services industry builds on this foundation, the engagement from younger traders and investors will be even more likely to grow in the years to come."
To see the complete list of Millennial 100 stocks, click here.
About Apex Clearing Corporation
Apex Clearing is a custody and clearing engine that’s powering the future of digital wealth management. Our proprietary enterprise-grade technology delivers speed, efficiency, and flexibility to firms ranging from innovative start-ups to blue-chip brands focused on transformation to capture a new generation of investors. We help our clients provide the seamless digital experiences today’s consumers expect with the throughput and scalability needed by fast-growing, high-volume financial services businesses. Founded in 2012, Apex Clearing is registered with the SEC, a member of FINRA and a participant in SIPC.
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