DALLAS, Oct. 8, 2020 /PRNewswire/ -- Apex Clearing, the custody and clearing engine powering the future of wealth management, released its Q3 2020 Apex Millennial 100 report, an analysis of the top 100 stocks owned by millennial investors using Apex partner applications as of September 30, 2020. The report analyzed more than 1.5 million investment accounts owned by U.S.-based investors with an average age of 31 years and nine months.
Millennial investors continue to be unrattled when evaluating opportunities to deploy capital, even amid the ongoing spread of COVID-19, as well as a backdrop of increasing tensions tied to the upcoming presidential election. The Q3 Apex Next Investor Outlook identifies notable patterns and provides insights into how this group of more than 1.5 million millennial investors reacted, with a special focus on how they are investing during the "new normal" market environment in comparison to other generations.
"It is incredible that since the beginning of the year, in the face of persistent pandemic-related volatility, the number of millennial investor accounts across our client platforms has doubled," said Bill Capuzzi, CEO of Apex Clearing. "This report truly gives us a glimpse into the investing mindset of these millennials, and how they've responded to not just volatility, but where they see opportunity and the sectors that excite them – one thing's for sure, they're definitely bullish in the face of uncertainty. The data we've collected in the latest quarter show that millennial investors are betting big on the electric vehicle sector. More than just Tesla, millennial portfolios also include big names such as NIO, as well as EV-specific SPAC stocks."
Some trending stock themes in the Q3 Apex Millennial 100 include:
- Tesla takes crown from Apple, as millennial portfolios charge up on electric vehicles: Millennial investors appear to be considerably more bullish on the electric vehicle space. During the third quarter, Tesla jumped from the No. 3 spot on the Apex Millennial 100 to No. 1, taking the top spot from Apple, which was dethroned after holding the spot for four consecutive quarters. China's NIO continues to turn heads as one of the new darlings of the electric vehicle space – the stock was up over 150% in the third quarter – it also climbed in the rankings. Previously ranked No. 47, NIO ended Q3 all the way up at the No. 12 spot on millennials' list. Millennial investors also made aggressive moves when it came to electric vehicle SPAC (special purpose acquisition company) stocks. Making the millennials' list for the first time at the No. 24 spot, SHLL is a SPAC that's set to merge with Texas-based Hyliion, an electric powertrain solution for Class 8 commercial vehicles. Meanwhile, slightly ahead at the No. 24 spot sits other M100 newcomer SPAQ – another SPAC which plans to bring electrical vehicle maker Fisker public. Neither SHLL or SPAQ made the boomers' top 100 list.
- COVID-19 continues to influence portfolio moves across multiple sectors: With the race toward developing a vaccine underway, some manufacturers created noise in Q3 as they approached and entered new trial phases – and millennial investors seemed to be paying attention. In fact, it seems they may have their bets placed on three favorites, with Moderna moving from No. 40 to No. 38, J&J dropping slightly from No. 37 to No. 41 and Pfizer making the move from No. 63 to No. 59 on the Apex Millennial 100. This generation also appears to be very plugged into the news cycle when it comes to stocks that seem to be gaining popularity in a COVID-19 world. For example, Zoom climbed from No. 38 to No. 21, Draftkings moved from No. 65 to No. 46 and Peloton climbed 33 spots to No. 53 among millennials' top 100 picks. Meanwhile, Docusign and Teladoc Health, both previously unranked, made the list in the third quarter at No. 51 and No. 69, respectively.
- Big-name stock splits prove popular across generations; fractionals see another quarter of heavy volume: Apple's 4-for-1 and Tesla's 5-for-1 stock splits earlier this summer captured headlines. Following their respective splits, the stocks (which as of Q3 are among the top 3 stocks for boomers, generation X, millennials and generation Z) were more accessible to investors, thanks to their lowered share price. In regard to Tesla, the percentage of holdings across Apex partner platforms nearly doubled across each generation in the third quarter, while surprisingly, it was Boomers who showed the most enthusiasm for Apple (at 21.7%, the highest weighting among any generation.) At the same time, fractional share trading, which allows investors to buy pieces of a stock in dollar amounts, also saw another spike in activity across partner platforms during the quarter.
"In the third quarter, we saw another major jump in fractional share trading, to the tune of roughly 54% of all trades made across partner platforms," said Tricia Rothschild, President of Apex Clearing. "While it's a significant jump, it's really of no surprise to us at Apex Clearing – this technology has truly democratized investing. Thanks to fractional trading technology, retail investors can better diversify their investing strategies, with access to higher priced stocks that are trading in less than a whole share to better suit their financial situation."
Also in the third quarter, support for Big Tech stocks Apple, Amazon, Tesla and Microsoft spanned the generational divides for the second quarter in a row. Boomers, generation X, millennials and generation Z, in a do-over from the second quarter, again counted the big-name companies among their top four holdings.
To see the complete list of Millennial 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. Our proprietary enterprise-grade technology delivers speed, efficiency, and flexibility to firms ranging from innovative start-ups to blue-chip brands focused on transformation to capture a new generation of investors. We help our clients provide the seamless digital experiences today's consumers expect with the throughput and scalability needed by fast-growing, high-volume financial services businesses. Founded in 2012, Apex Clearing is registered with the SEC, a member of FINRA and a participant in SIPC.
For more information, visit the Apex Clearing website, and follow the company on Instagram, LinkedIn, and Twitter.
JConnelly for Apex Clearing
SOURCE Apex Clearing