DALLAS, Oct. 31, 2019 /PRNewswire/ -- Apex Clearing, the custody and clearing engine powering the future of wealth management, has released its Q3 2019 Apex Millennial 100 report, an analysis of the top 100 stocks owned by millennial investors using Apex partner applications as of September 30, 2019.
A part of the firm's broader "Next Investor Outlook" series, which uses data collected from Apex partners to develop an understanding of the modern investor, the Q3 Apex Next Investor Outlook focuses specifically on the distinctive behavior of the millennial investor. According to Pew Research Center, millennials are projected to become the largest living adult generation, which has major implications for how, when and why financial services are consumed now and in the future.
The Q3 Millennial 100 report analyzed more than 706,000 investment accounts owned by people with an average age of 31 years and one month and found some notable patterns that differentiate their investing behavior from that of previous generations.
"When it comes to investing, millennials are a different breed than their parents and grandparents," said Bill Capuzzi, CEO at Apex Clearing. "The Millennial 100 was created to help financial service providers better understand how this demographic segment interacts with their investments and be prepared as the tide turns toward millennial interests in the coming years."
Some trending stock themes in the Q3 Apex Millennial 100 include:
Brick and mortar retail has staying power. While media headlines have depicted massive brick and mortar store closings and bankruptcy filings from retail giants, there are some key players that have managed to hold the trust of millennials and whose stocks are well represented in the top 100, including Walmart, Target and Costco.
Millennials are tracking away from the S&P 500. Often times, investor habits and behaviors simply reflect the S&P 500; however, with millennials, that's not the case. Trailblazing their own paths, millennials' holdings are significantly underweighted in key sectors (like Oil and Gas) and are drastically higher in others (like Electronics). In many instances, they're staying clear of specific sectors altogether (like Utilities).
Interest rate cuts are opening new doors for the younger investor. Thanks to recent cuts by the Fed, which have brought mortgage interest rates down to a three-year low, experts believe that mortgage originations and refinances will skyrocket, nearing the $2 trillion mark set in 2016. With Fannie Mae and Freddie Mac both representing the industry on millennials' top 100 list, these investors are in a position to capitalize on increased activity across the mortgage sector, should it occur.
"Millennials continue to forge their own path when it comes to investing," said Hannah Shaw Grove, Chief Revenue Officer at Apex Clearing. "Over the third quarter of 2019 they embraced some surprisingly traditional trends, like retail stores and home mortgages, while deviating sharply from the S&P 500 in other traditional areas like utilities and healthcare."
To see the complete list of 100 stocks, click here.
About Apex Clearing Corporation Apex Clearing is a custody and clearing engine that's powering the future of digital wealth management. As a technology firm, Apex Clearing delivers speed, efficiency and flexibility to firms ranging from innovative start-ups to blue-chip brands focused on growth.
Apex Clearing's fully integrated, customized solutions allow registered investment advisors (RIAs), digital advisors, fintech firms, broker-dealers and full-service firms to reach more investors and deliver the seamless digital experiences consumers expect. Founded in 2012 and based in Dallas – with offices in New York City, Chicago and Portland, Oregon – Apex Clearing Corporation is registered with the SEC, a member of FINRA and a participant in SIPC.