New data reveals retail investors adopt thoughtful strategies, diversified holdings and macro awareness
Retail investors are moving beyond the “dumb money” label, showing greater discipline, consistency and diversification in how they invest.
New research from eToro polled 11,000 self-directed investors across 13 countries with the results suggesting that individual investors are adopting more deliberate strategies and paying closer attention to portfolio construction than in previous years.
The data shows that 70% of retail investors regularly review their portfolios, while 79% invest on a monthly basis as part of a planned approach rather than reacting to short-term market swings. Younger investors are leading the trend with 87% of Gen Z and 86% of millennials saying they invest monthly, compared with lower participation among older generations.
“Retail investors are now noticeably different from the opportunistic stereotype that dominated headlines in 2021,” said Lale Akoner, global market strategist at eToro. “Our survey shows today’s retail investors are engaged, deliberate and consistent, reflecting a more disciplined approach rather than reactive behaviour.”
The survey also highlights growing diversification among retail portfolios. Over the past two years, investors have increased exposure to a wider range of assets, including cryptoassets, international equities, commodities and bonds, particularly those issued outside their home markets.
“Retail investors are increasingly allocating capital with diversification firmly in mind across a broader opportunity set,” Akoner said, adding that a decline in cash holdings does not signal a retreat from markets but instead reflects reallocation into assets such as commodities and bonds that may help manage risk.
Macro trends are also influencing retail decision-making. With the US dollar weakening, nearly half of respondents said they plan to adjust their portfolios. Ownership of gold has risen to 48%, up from the previous quarter, underscoring how currency moves and global policy developments are shaping investment choices.
“Currency dynamics and global policy developments are playing a growing role in shaping retail investor behavior,” Akoner said.
Improved access to information and investment tools has helped narrow the gap between retail and institutional investors, according to the report. Akoner noted that in some cases, retail investors “outperformed institutions in 2025,” reflecting increased sophistication among individual market participants.
While 2021 marked the moment when retail investors captured widespread attention, eToro’s findings suggest that 2025 represents a period of maturation, defined by steadier behavior, broader diversification and a more strategic approach to investing.
