The vast majority of US-based active traders (92 per cent) say they are knowledgeable about ETFs, and feel confident they have the resources and tools to trade ETFs with intelligence, while mitigating risk, according to a new Direxion Trader Sentiment Survey conducted by the Harris Poll.
The survey was conducted in October 2022, and directed towards US-based active traders who make their own trading decisions, trade within their account at least monthly, and have at least USD25,000 in investible assets. Nearly half of all respondents (49 per cent) currently hold ETFs in their portfolio, with 80 per cent – regardless of whether or not they trade ETFs – stating they are knowledgeable about ETFs.
When it comes to making trading decisions, active traders are monitoring traditional media (92 per cent) and social media (77 per cent) for important developments. An overwhelming majority of active traders (82 per cent) were confident when making informed decisions about trading ETFs.
“It’s a positive sign that ETFs have become integral to so many active traders’ strategies, and that so many have done their homework to understand these investment vehicles,” says Direxion Chief Marketing Officer Andy O’Rourke. “Since the firm’s inception, Direxion has made it a top priority to educate traders through our Education and Insights centre, and there’s still work to be done across the industry to educate an even broader swathe of traders in a diverse marketplace.”
Some 89 per cent of the 500 active traders surveyed believe they can generate returns trading in both bull and bear markets. However, Gen Z/Millennial traders proved more likely than Gen X or Boomers/Silent generation traders to expect it will take 12 months or less for the S&P 500 index to return to all-time highs, an overwhelmingly positive outlook on the S&P 500 over the next year.
“These results confirm active traders in 2022 are in a better position than previous generations to take advantage of opportunities,” says Direxion Managing Director and Head of Sales, Ed Egilinsky. “Active trading used to be more heavily skewed to older generations due to the requirement of accumulated wealth. There’s more active trading across a broader demographic now since markets are more accessible. That access necessitates education and validates our commitment to continually educating active traders.”