Bringing you live news and features since 2006 

GraniteShares reports retail traders switching to ETFs and funds


Retail share traders are increasingly turning to ETFs and funds at the expense of trading individual stocks, according to new research from ETP provider GraniteShares.

Its research found nearly a third (30 per cent) of regular share traders plan to cut investment in individual stocks in the year ahead to concentrate on investments in ETFs and funds. 

Around 16 per cent will invest more in ETFs and funds while 7 per cent will increase investment only in ETFs and 7 per cent in funds exclusively.

The research for GraniteShares, shows ETF investment is growing in popularity. Around a quarter (27 per cent) of regular share traders in the UK currently invest in leveraged or short ETPs. Leveraged long ETPs are more popular with around 9 per cent of regular traders using leveraged long strategies while 4 per cent invest in short ETPs. Around one in eight (13 per cent) say they use both types of products.

Awareness of the ability to short individual stocks using ETPs is high – more than half (54 per cent) of regular share traders say they know about using ETPs to profit from falling share prices. The study found 11 per cent of traders currently own ETFs or ETPs with men (15 per cent) twice as likely as women (8 per cent) to hold them.

Will Rhind, Founder and CEO at GraniteShares says: “There are signs of a growing switch away from investing in individual stocks among regular share traders as they look to other ways of investing such as ETFs and funds.

“It is potentially a sign of the growing maturity of the UK retail trading market with investors who first started trading during the pandemic now looking for other ways to invest their money.

“That is reflected in the demand for products such as short and long ETPs which provide the flexibility needed to help navigate volatile market swings on both the long and short sides.”

Latest News

ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..
Investors urgently need greater access to diversified investment strategies aligned with the Paris Agreement on climate change if the world..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by