The State of Retail Investors in 2025
What Retail Investor Reports from the WEF and eToro Reveal About the Future of Finance, Comms, IR, & Capital Markets
“The more you learn, the more you earn.” -Warren Buffet
Millennial and Gen Z investors are learning from experience. Collectively, these investors have experienced multiple market cycles - from the post-2008 recovery and the rise of digital trading platforms for stocks and crypto, to the volatility of the pandemic era and recent macroeconomic shocks. At this point, some Gen Z investors have been active participants in the markets for over a decade. 🤯
Today’s investors are wielding real-time data, a constant stream of financial content, and increasingly sophisticated AI-powered tools that function like personal financial analysts, they are learning faster than any generation before them. As a result, retail investors are not only more market-literate, they’re strategic, confident, and acutely aware of the influence they can exert. Specifically, the broader impact of their collective voice and action in public markets.
We take a look at two recent reports diving into the current state of retail investors, who they are, and how they’re behaving today. The 2024 Global Retail Investor Outlook, produced by the World Economic Forum in collaboration with BCG and Robinhood, reveals that younger investors are increasingly interested in shaping the strategic direction of the companies they invest in. Concurrently, eToro’s Q1 2025 Retail Investor Beat, shows that retail investors have developed greater resilience and discipline, maintaining or increasing their positions even in periods of heightened uncertainty.
The trend is clear: retail investors are engaged, informed, and actively redefining what it means to be a shareholder.
Gen Z Is Driving a New Era of Shareholder Activism
According to the WEF report, 54% of Gen Z investors express a desire to influence corporate behavior, including areas such as sustainability, governance, and executive compensation. This contrasts with only 30% of Baby Boomers who express similar intentions.
This generational divergence is not solely about age—it reflects fundamentally different expectations around ownership. Gen Z views shareholding as a reciprocal relationship. Just as they demand authenticity and accountability from consumer brands, they are now applying those same standards to the companies in which they invest.
And their presence is being felt. Shareholder proposals focused on ESG, governance, and company culture are gaining momentum. These investors are casting informed votes, participating in annual meetings, and engaging directly with companies. They are not waiting for permission to be heard.
This behavior challenges traditional investor relations (IR) paradigms. Companies that continue to treat IR as a quarterly, compliance-oriented exercise risk alienating an increasingly influential investor segments and communities. Today’s retail investors expect direct engagement, transparency, and ongoing dialogue.
Retail Investors Are Demonstrating Long-Term Conviction
Contrary to the stereotype of retail investors as speculative or reactive, the data reveals a more strategic posture. During the volatility of Q4 2023—amid inflationary pressures, geopolitical tensions, and economic uncertainty—81% of U.S. retail investors either maintained or increased their positions. Only 7% reduced their exposure.
In Asia and the Middle East, conviction was even stronger, with nearly two-thirds of retail investors increasing their holdings.
This behavior reflects a thoughtful and deliberate approach to investing. Retail participants are increasingly values-aligned and fundamentals-focused. They are not simply trading; they are allocating capital in alignment with long-term objectives.
This level of engagement demands more than conventional disclosures. It requires real communication.
Implications for Companies: A New Standard for Investor Communication
What retail investors expect from companies is evolving. Transparency, authenticity, and accessibility are no longer optional—they are expected.
These investors seek to understand what companies stand for, not just what they earn. They are accustomed to consuming information via social media, podcasts, and video—not technical filings. As such, companies must reimagine IR as a dynamic function that blends traditional reporting with modern, human-centric communication.
Investor relations and corp comms have to evolve their financial comms playbook - continuous, proactive, and relationship-oriented. The companies that lead in this space will not only attract capital but also build trust and loyalty among a growing base of influential investors.
A Structural Shift, Not a Passing Trend
The rise of the engaged retail investor is not a fleeting phenomenon. It represents a structural shift in capital markets. Gen Z and Millennial investors are purposeful, resilient, and increasingly influential. Their expectations and self-awareness are reshaping the responsibilities of public companies.
Organizations that embrace this shift—and engage retail investors as stakeholders, not spectators - will be best positioned to succeed in this new era.
Trust, once earned, will be the most durable form of capital.