ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. ETF Education Channel
  2. In 2023, Smaller Retail Investors Could Propel These Big ETFS
ETF Education Channel
Share

In 2023, Smaller Retail Investors Could Propel These Big ETFS

Tom LydonDec 09, 2022
2022-12-09

As has been widely documented, 2022 will go down as a rough year for technology stocks and the related exchange traded funds, but that’s not keeping some retail investors from remaining devoted to the sector.

In fact, retail investors are rather enthusiastic about tech stocks heading into 2023, and that could be a positive for ETFs, including the Invesco QQQ Trust (QQQ B)+ and the Invesco NASDAQ 100 ETF (QQQM B). Both ETFs track the Nasdaq 100 Index (NDX), which is lower by more than 28% year-to-date, confirming weakness in large- and mega-cap growth stocks.

The potentially good news for QQQ and QQQM can be seen in a recent Finimize survey of more than 2,000 retail investors from Asia, Europe, and the U.S., which indicates that these market participants are enthusiastic about select growth stocks heading into 2023, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Google parent Alphabet (NASDAQ:GOOG), and Facebook parent Meta Platforms (NASDAQ:META). That quartet combines for nearly a third of the QQQ and QQQM rosters.

While retail traders won’t ever be confused with professional asset allocators, the former is growing in potency and assets.

“The retail investment community is set to account for 61% of all assets under management globally by 2030, up from 52% in 2021, according to wealth management strategy consulting firm Indefi,” reported Ryan Browne for CNBC.

Potentially supporting the case for QQQ and QQQM rebounds in 2023 is the point that, according to the Finimize poll, just 1% of retail investors plan to liquidate positions next year, while 94% either expect to maintain current positions or add new investments to their portfolios.

“This data is proof that even in the current market environment, the majority are seeing volatility simply as part of the economic cycle thanks to access to information and growing experience with investing,” said Finimize CEO Max Rofagha in a press release. “Additionally, it is clear that the retail investor narrative is changing. For example, previously there has been a focus on how a tiny population of day traders is behaving.”

Max Rothery, vice president of community at Finimize, said in an interview with CNBC that market participants shouldn’t expect a retail investor sequel to Gamestop (NYSE:GME), noting that retail investors are likely to be more restrained in 2023 in terms of quickly moving in and out of positions. However, they will continue investing in more prudent fashion.

For more news, information, and analysis, visit the ETF Education Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X