preference for ETFs and attention to savings


Editorial board

QuiFinanza, the vertical channel of Italiaonline dedicated to the world of economics and finance: the reference and in-depth site for savers, professionals and SMEs.

THE young people under 34 compared to previous generations more inclined to save and even if they have the lowest incomes and asset values ​​recorded in Italy in recent decades (8% lower in 2020, according to the Bank of Italy, if compared with that of 2006) they are very clear about the importance of investing for secure a future and independently provide for their pension. Compared to those who preceded them they stand out for autonomy and awareness in investment choices and attention to sustainability. This is what emerges from the analysis of Scalable Capitala platform that democratizes access to investments, which compares the behavior of new (under 35) and old (over 55) generations today to understand differences and similarities.

Spending capacity does not seem to be an obstacle

The starting point of the analysis is not only the difference in age and values ​​but the spending capacity which significantly influences the possibility of putting money aside: according to Statista in 2022 the average value of financial assets of Italians between 55 and 64 years old was estimated at 147,415 euros, while that of Italians between 25 and 34 years amounted to 58,429 euros. If the context seems to hinder them, the analysis of their behavior instead sees them as the generation most inclined to investments, resilient and far-sighted.

ETFs and awareness

Both generations, in fact, even if in slightly different percentages, make a difference extensive use of ETFs which in both cases represent the most important part of the investment mix (74% for the 18/34 age group vs 59% for the over 55s), actions follow (23% for young people vs 36% for more mature people) and other products (3% for the former and 5% for the latter). The big difference between the two clusters lies both in the fact that young people became aware of the importance of saving and investment much earlier, and in the autonomy with which they approach these issues: unlike those who preceded them, in fact, also due to lack of availability, hardly have had contact with consultants financial who educated them and guided them in their choices. Their preferential channel is digital solutions that allow them to invest small sums but consistently over time.

Product choice and savings

Even in the choice of products the orientations are very similar: among the 10 most requested ETFs from clusters, several are common (5 out of 10): Both generations favor exchange-traded global funds (ETFs) broadly diversified such as iShares Core MSCI World UCITS ETF and thematic ETFs on specific sectors such as artificial intelligence, automation and robotics such as Xtrackers Artificial Intelligence & Big Data UCITS ETF 1C and ETFs dedicated to emerging markets such as Vanguard Funds PLC – Vanguard FTSE All-World UCITS ETF – (USD). However, the age group between 25 and 34 years old is in the lead in the savings ranking: the ratio of accumulation plans among the different age groups it is 42% for young people under 35 and only 32% for those over 55. Furthermore, the youngest age group (18-24 years) has increased its savings rate by 4.5 times in the last two years.