A nationally representative survey of more than 2,000 Australians found 36% of Millennials, aged 29 to 44 years, are invested in shares outside their superannuation compared to 29% of Baby Boomers, aged 61 to 79 years.
Additionally, 32% of Generation Zs, aged 18 to 28 years, and 30% of Generation Xers, aged 45 to 60 years, are also invested in equities.
Those equities include ASX shares, international shares, and ASX exchange-traded funds (ETFs).
Why are younger generations more invested in shares?
Investment platform Stake, which conducted the survey, says investments like shares have become an alternative to home ownership in the wealth building strategies of younger generations.
In the 2025 Ambition Report, Stake says home ownership feels "out of reach" for younger generations:
The traditional route to financial progress has not been accessible to them – making alternative paths even more important.
The report also shows that younger generations view assets as more important than career progression to build long-term wealth.
Some young people on average wages may only acquire major assets through inheritance or compulsory superannuation.
Meantime, shares provide an easy, low-cost avenue for getting started with investing.
Investing in shares outside superannuation gives young people flexibility.
Firstly, they can get started with as little as $500 via an online trading platform like Stake.
While super is locked away until preservation age, people can sell their shares any time to fund big purchases like a car or home.
They'll get their money in two trading days, and they'll only pay tax on 50% of the gains if they've held the shares for more than a year.
If they invest in ASX shares with full franking, the tax they'll pay on that annual income is vastly reduced.
According to research by National Australia Bank Ltd (ASX: NAB), younger generations prefer exchange-traded funds (ETFs) over shares.
NAB's data shows at least 40% of Gen Zs and 34% of Millennials have invested in at least one ETF.
ETFs are baskets of equities that provide immediate diversification in a single trade for one brokerage fee.
There are more than 400 ETFs trading on the ASX today.
Many provide access to US shares and other international stocks. This is appealing given the extraordinary three-year run for US equities.
Gemma Dale, director of SMSF and Investor Behaviour at NAB, said:
ETFs are generally viewed as a 'set and forget' investment option, offering consistent returns compared to individual stock picking.
Looking for inspiration on investment strategies?
Learn the three famous investing strategies recommended by Warren Buffett, Ray Dalio, and Jack Bogle for amateur investors.
Also check out the five most bought ASX shares and the five most bought ETFs among Stake customers in 2H FY25.
