A new study by eToro reveals that retail investors are heavily invested in financial services stocks and cash assets while eyeing cryptocurrency as a change for the future. Cash still dominates, with 69% of investors holding it in their portfolios. When asked which assets they would most like to add to their portfolios, respondents typically indicated that these would be digital tokens.
Retail Investors Favor Cash Assets and Financial Services Stocks
Cash is held by 69% of respondents, while stocks are in second place, with 49%. Financial services stocks dominate retail portfolios, with 61% of surveyed investors holding positions in the sector. Technology and energy follow at 40% and 35% respectively. This trend reflects the recent outperformance of energy and tech stocks, as well as expectations for financial services to gain momentum in the coming months.
The visible preference for cash is likely driven by persistently high interest rates, with many major economies offering attractive 5% risk-free savings rates. This also leads to considerable interest in domestic bonds, held by 34% of respondents. Every fourth investor also focuses on commodities and FX products.
| Sector | % of global retail investors who hold | Asset class | % of global retail investors who hold |
| Financial services | 61% | Cash assets | 69% |
| Technology | 40% | Locally listed stocks | 49% |
| Energy | 35% | Domestic bonds | 34% |
| Real estate | 33% | Internationally listed stocks | 31% |
| Communications | 32% | Commodities/FX | 26% |
"While markets have continued to deliver for investors in 2024, the widespread availability of highly attractive savings rates means that cash will remain the dominant asset class amongst global retail investors, at least for a few more months,” eToro analyst Sam North commented on the findings.
Tech and Crypto Seen as the Future
Looking ahead, retail investors see technology and cryptocurrency as the most promising sectors for future investment. Eighteen percent of respondents plan to increase their tech investments, while 15% view crypto as their top priority going forward.
This contrasts with another survey by eToro from a few months ago, in which every fourth respondent suggested that they were moving away from big tech giants, selling their shares and reducing exposure.
The study also revealed significant regional differences in investment intentions. Investors in the UK and the US are more focused on cash assets, with 25% and 19%, respectively, prioritizing this asset class. In contrast, German and Spanish investors are more bullish on cryptocurrency, ranking it as their top investment priority.
| Country | Crypto | Cash assets | Locally listed stocks | Internationally listed stocks | Commodities |
| UK | 11% | 25% | 8% | 10% | 6% |
| US | 12% | 19% | 16% | 3% | 8% |
| Spain | 20% | 11% | 12% | 9% | 8% |
| France | 10% | 22% | 12% | 6% | 7% |
| Germany | 16% | 9% | 13% | 13% | 12% |
| Italy | 12% | 10% | 10% | 9% | 9% |
| Australia | 12% | 14% | 20% | 8% | 10% |
| Netherlands | 16% | 3% | 14% | 11% | 12% |
These divergent trends align with varying crypto ownership rates across countries. In Spain and Germany, 38% and 32% of retail investors hold cryptocurrency, compared to 25% in the UK and 27% in the US.
As central banks begin to cut interest rates, with the European Central Bank recently leading the way, the investment landscape may shift. North suggests this could tip the scales "more in favor of equities and other asset classes like real estate" in the coming months.
The Retail Investor Beat (RIB) survey, conducted by trading platform eToro, provides insights into the investment preferences of 10,000 retail investors across 12 countries.
Last week, the popular retail trading platform renewed its sports sponsorship with Czech Football Club SK Slavia Prague. Thanks to the renewal of the agreement, the eToro logo will be featured on the front of the players' match jerseys for the fourth consecutive season.
