Gen X and Y target niche high growth sectors
While baby boomers are investing in the Australian sharemarket, Gen X and Gen Y are investing in high growth sectors including video games and semi-conductors with their international turnover lifting by 91 per cent, according to National Australia Bank (NAB),
The international turnover lifted 91 per cent for Gen X and 73 per cent for Gen Y in the 12 months to 31 January 2017. Nabtrade director of SMSF and investor behaviour, Gemma Dale, said investors classed as Gen X and Y (between 22 and 51) tended to favour “innovative” investment options.
“The big stock picks for Gen X investors were Amazon, Tesla, Microsoft and Alphabet, while Baby Boomers opted for Apple and Facebook, as well as more established players,” she said.
“Baby Boomers are opting for traditional blue chips names which offer reliable yields and have excellent long-term track records.”
Technology stocks favoured by younger investors included those in fields such as advanced micro devices, activision blizzard, and nvidia.
While Gen X and Y favoured more non-traditional investments, Dale said Nabtrade figures showed Baby Boomers remained the most confident and active investors.
“They also buy and sell more than double the average Gen Y trade,” she said of those in the 1946-1964 birth year age brackets.
The top 10 holdings for Gen Y investors at the end of January were A2 Milk and Bellamy’s Australia, while Fortescue Metals, Rio Tinto and the Commonwealth Bank (CBA) were favoured by Gen X. All three generations showed high investment levels in ANZ, Telstra, BHP, and NAB.
AUTHOR
Hope William-Smith
Recommended for you
Some 42 per cent of CEOs say they are actively reinventing their business to stay relevant in the next decade, with consumer services the most common choice for asset and wealth managers.
Former Ophir Asset Management chief executive, George Chirakis, has joined private equity manager Scarcity Partners, while the asset manager has appointed a replacement from Macquarie.
Australian Unity has appointed a fund manager for its Healthcare Property Trust, joining from Centuria Healthcare, as it restructures the product with a series of senior appointments.
Financial advisers nervous about the liquidity of private markets funds for their retail clients are the target of fund managers launching semi-liquid products which offer greater flexibility and redemptions.
