Watching Your Wallet: How each generation is investing

FRESNO, Calif. (KFSN) -- When it comes to retirement planning, younger generations aren't opting for the traditional route.

"We're seeing a bit of a shift when it comes to generational divide when it comes to who invests in what," says Sam Bourgi, a Staff Analyst with InvestorsObserver.

A new study by InvestorsObserver suggests ETFs, or exchange-traded funds, are growing in popularity for Gen Z and millennials.

"75% of Gen Z and 81% of millennials hold ETFs in their retirement account, compared to 60% of baby boomers," Bourgi said.

The study also found that Crypto or digital asset ETFs are vastly more popular with Gen Z (59%) and Millennials (57%).

"We do see younger generations favor more tech, whereas the older generations tend to favor more real estate investments or real estate trusts," Bourgi said.

Bourgi says they found that younger generations are more tolerant to risk, while so-called boomers stayed cautious, investing in sectors that are known to be stable, including health care and real estate.

But that finding isn't solely based on preference.

Bourgi went on to say no generation is necessarily winning retirement investing. The analysis highlights the different approaches.

"The good news is 401k planning seems to be well understood across the board," he said.

To look at the full study and see how the different ETF themes stack up generationally, click here.

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