Wealthy young investors, categorised as millionaire millennials, have been making some interesting ASX share investment choices in the last few months.
Investment choices can provide insights into the mood of different investor demographics.
Data from broker Selfwealth Ltd (ASX: SWF) has revealed where investors have been putting their money in FY24 to date, from 1 July 2023 to 7 August 2023.
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Most popular trades
Selfwealth has provided a list of ASX shares and investments that millionaire millennials have been trading in. It's sorted by the number of trades rather than the number of units or value of trades so that a few rich investors don't skew the results with large trades.
That said, here are the ASX investments with the most amount of trades:
BetaShares Geared Australian Equity (Hedge Fund) (ASX: GEAR) is an exchange-traded fund (ETF) that's betting on the S&P/ASX 200 Index (ASX: XJO) to rise. It borrows money to amplify the gains (and losses) made by the portfolio. Current gearing is 57%, which to some people may not be a comfortable level of borrowing for their own portfolios.
Global X Ultra Long Nasdaq 100 Hedge Fund (ASX: LNAS) is invested in 100 of the largest businesses on the NASDAQ 100 stock exchange while utilising futures contracts.
BetaShares Australian Equities Strong Bear Hedge Fund (ASX: BBOZ) is an ETF that enables investors to bet that the ASX 200 is going to fall by using futures. It uses leverage, which amplifies the returns and losses. Since its inception in April 2015, the ASX ETF has delivered an average return per annum of negative 20.3% to June 2023.
Vanguard Australian Shares Index ETF (ASX: VAS) is an ETF focused on 300 of the largest ASX shares.
BetaShares Crypto Innovators ETF (ASX: CRYP) is an ETF that's invested in global companies that provide exposure to the cryptocurrency economy. In this portfolio are names like Marathon Digital Holdings, Riot Platforms, and Coinbase Global.
Stanmore Resources Ltd (ASX: SMR) is an ASX coal share that has seen its share price rise to a much higher level than before Russia invaded Ukraine.
Other interesting data points
Looking at the wider millennial cohort, not just the rich ones, the largest number of trades involved ETFs. They were: the VAS ETF, Vanguard Diversified High Growth Index ETF (ASX: VDHG), Vanguard MSCI Index International Shares ETF (ASX: VGS), iShares S&P 500 ETF (ASX: IVV), and Betashares Nasdaq 100 ETF (ASX: NDQ).
Miners made up some of the most popular investments by the wider millennial cohort, including Fortescue Metals Group Ltd (ASX: FMG), Core Lithium Ltd (ASX: CXO), and Pilbara Minerals Ltd (ASX: PLS).
Non-millionaire baby boomers and Gen Xers liked trading in Core Lithium as well. It seems Gen X hasn't been doing much ETF trading. Millionaire baby boomers have, unsurprisingly, been trading a lot in ASX blue chips, and predominately selling the cash ETF Betashares Australian High Interest Cash ETF (ASX: AAA).
Meantime, millionaire Gen X investors have been interested in technology businesses like Advanced Micro Devices, Intel, and Quantumscape.
