Apex Clearing, a “custody and clearing engine powering the future of wealth management,” has released its “Q3 2020 Apex Millennial 100 report,” an analysis of the top 100 stocks owned by Millennial investors using Apex partner applications as of September 30, 2020. Apple places number two on the list, dropping from the top spot.
The Apex Clearing report analyzed more than 1.5 million investment accounts owned by U.S.-based investors with an average age of 31 years and nine months. It’s designed to “identify notable patterns and provide insights into how this group of more than 1.5 million Millennial investors reacted, with a special focus on how they are investing during the ‘new normal’ market environment in comparison to other generations.”
Bill Capuzzi, CEO of Apex Clearing, says Millennial investors appear to be considerably more bullish on the electric vehicle space. During the third quarter, Tesla jumped from the No. 3 spot on the Apex Millennial 100 to No. 1, taking the top spot from Apple, which was dethroned after holding the spot for four consecutive quarters.
China’s NIO continues to turn heads as one of the new darlings of the electric vehicle space – the stock was up over 150% in the third quarter – it also climbed in the rankings. Previously ranked No. 47, NIO ended quarter threeall the way up at the No. 12 spot on millennials’ list. Millennial investors also made aggressive moves when it came to electric vehicle SPAC (special purpose acquisition company) stocks.
Making the millennials’ list for the first time at the No. 24 spot, SHLL is a SPAC that’s set to merge with Texas-based Hyliion, an electric powertrain solution for Class 8 commercial vehicles. Meanwhile, slightly ahead at the No. 24 spot sits other M100 newcomer SPAQ – another SPAC which plans to bring electrical vehicle maker Fisker public. Neither SHLL or SPAQ made the boomers’ top 100 list.
Big-name stock splits prove popular across generations. Apple’s 4-for-1 and Tesla’s 5-for-1 stock splits earlier this summer captured headlines. Following their respective splits, the stocks (which as of quarter three are among the top three stocks for Boomers, Generation X, Millennials and Generation Z) were more accessible to investors, thanks to their lowered share price.
In regard to Tesla, the percentage of holdings across Apex partner platforms nearly doubled across each generation in the third quarter, while surprisingly, it was Boomers who showed the most enthusiasm for Apple (at 21.7%, the highest weighting among any generation.) At the same time, fractional share trading, which allows investors to buy pieces of a stock in dollar amounts, also saw another spike in activity across partner platforms during the quarter.
