Retail investors seeking US exposure as confidence returns
Sharesies’ latest data shows a return in retail investor confidence in the final months of 2024 with investors continuing to look for US exposure via ETF.
Thursday, January 16th 2025, 9:08AM
by Kim Savage
Sharesies’ latest data shows a return in retail investor confidence in the final months of 2024 with investors continuing to look for US exposure via ETF.
The wealth app’s index score of 55 for the fourth quarter indicates sentiment in the ‘confident’ range, moving up out of the ranges of ‘concerned’ and ‘balanced’ seen earlier in the year in the Sharesies Index. It’s the highest score since 2022.
The platform also saw record trading for the quarter of NZD $3.21 billion - near double the previous record.
Sharesies Acting Commercial and Financial Officer Erin Avery says with two cuts in the official cash rate this quarter, many investors may have taken an opportunity to assess where they allocate and grow their wealth.
“Almost all the key indicators that inform the Sharesies Index showed gains.
“The ratio of deposits to withdrawals finished the quarter strong, with interest in the new Sharesies PIE Save account.
“This indicates investors may be looking for tax efficient returns as interest rates ease,” says Avery.
“Almost all the key indicators that inform the Sharesies Index showed gains."
Looking at the 50 most owned instruments on the platform, the Smart US 500 Exchange Traded Fund took the top spot for the first time, sending Air New Zealand to second place.
As volatility settled post-US election and investor confidence increased, so too did interest in companies with the measure of percentage invested in companies averaging 73% up from the record lows of the July-September quarter.
Sharesies also reviewed the major movements in its most-owned investments for 2024, with the NASDAQ proving the most popular exchange for those investments moving up the rankings, while nine of the ten largest declines were NZX investments. Exceptions were NZX listed Fisher & Paykel Healthcare and the Fonterra Shareholders Fund, which moved up the ranks.
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