Retail investors are leaving the ‘dumb money’ label behind, demonstrating their maturity with high levels of engagement, disciplined portfolio construction, greater diversification and macro awareness, according to the latest quarterly Retail Investor Beat from online broker eToro.

The quarterly study, which surveyed 11,000 retail investors across 13 countries, found that retail investors show high levels of discipline and active engagement, with 70% actively reviewing their investments and 79% investing regularly every month. Younger generations show the highest rates of active engagement, with 87% of Gen Z and 86% of millennials allocating capital into the markets each month, compared to 79% and 68% of Gen X and boomers respectively.

Commenting on the data, eToro’s Global Market Strategist Lale Akoner, said:

“Retail investors are now noticeably different from the opportunistic stereotype that dominated headlines in 2021. Our survey shows today’s retail investors are engaged, deliberate and consistent, reflecting a more disciplined approach rather than reactive behaviour.

“Younger investors, in particular, are leading this shift. Many entered the markets during a period of structural change with heightened volatility and macro uncertainty. As a result, they have grown accustomed to monitoring global trends and using technology and accessible information to manage risk strategically.”

The latest Retail Investor Beat also shows that retail investors continue to broaden their portfolios across asset classes. For the second consecutive year, the number of investors holding cryptoassets, foreign equities, commodities and domestic bonds has increased. Over the past year, the share of retail investors exposed to foreign bonds and currencies has also risen.

Lale Akoner said:

“Retail investors are increasingly allocating capital with diversification firmly in mind across a broader opportunity set. The recent decline in cash allocations points to a gradual rebalancing rather than a pullback from markets, while greater exposure to commodities, bonds, foreign assets and cryptoassets suggest that diversification is being used as a risk-management tool rather than purely for return seeking.”

Retail investors are also demonstrating strong awareness of global macroeconomic dynamics. As the US dollar weakens, retail investors are reassessing the role of traditional defensive assets with 49% saying they plan to adjust their portfolios, while gold ownership has increased to 48%, up three percentage points from Q2 2025.

Lale Akoner added:

“Currency dynamics and global policy developments are playing a growing role in shaping retail investor behavior. Improved access to market data, global macro insights and risk management tools has given retail investors a clearer line of sight into the forces shaping their investment returns and narrowed the investment gap between retail and institutional investors.

“Combine this information parity with the ability to execute faster than scale-constrained institutional investors and you can see why many retail investors outperformed institutions in 2025. While 2021 was arguably the year of retail’s breakout, 2025 demonstrates retail’s evolution. They have matured and are displaying a growing level of sophistication marking a new chapter in the evolution of retail investing.”