New data from YouGov commissioned by BlackRock explores attitudes to investing by Europeans. The 2024 BlackRock People & Money Survey also examines why people across Europe feel they are not able to invest. The survey explores the attitudes of current investors and potential investors across 14 European countries.[3]
Building on from research conducted by YouGov and BlackRock last year, respondents were asked to signal which investment vehicles they invest in today, and which they intend to use to invest in over the next 12 months.
Timo Toenges, EMEA Head of Digital Wealth at BlackRock said, “Household investments in Europe have increased dramatically since 2020 driven by a confluence of factors including lower barriers to accessing investments through digital channels, both from new platforms and traditional banks. Europeans continue to grapple with financial challenges, including a lack of sufficient retirement provisions. Up until 2022, low interest rates and recently, higher rates coupled with high inflation have punished cash savers. Taken together, these trends have led millions of Europeans to turn to capital markets to secure better long-term financial futures, and the number participating keeps increasing.”
Gen Z, Millennials and women leading – with more opportunity for growth
Women of all ages, Generation Z and Millennials (aged 25-34) have driven the growth of investors across Europe in the last 12 months. There has been an 11% year-on-year increase in the number of women investing (29% of women invest in 2024), versus a 4% growth among men over the same period (47% of men invest in 2024). Given men have traditionally been more established as investors already, this is a clear sign that investing is opening up to more parts of society. Whilst women are the fastest growing investment demographic, there is still more work to be done to reach gender parity. The study also shows a significant year-on-year increase from some age groups, with a 13% increase in investment activity among those aged 25 to 34.
In the UK, more Millennials and women are now investing than ever before. 30% more 25 to 34-year-olds (from 29% in 2022 to 38% in 2024) and 32% more women are investing compared to our previous study (from 22% in 2022 to 29% in 2024). Generation Z are also increasingly investing, with 16% more investors aged 18 to 24 (from 30% in 2022 to 35% in 2024).
Younger generations and women are expected to lead a new wave of investors in the UK. Over the next 12 months, over half (51%) of new investors in the UK are expected to be women and 66% aged 18 to 34 (compared to 42% and 28% currently, respectively).[4]
New ETF investors in the UK are also expected to be younger, with 77% aged 18 to 34.[5]
Not enough money or knowledge
Not having enough money is holding back people in the UK from investing. Indeed, 70% of those who do not currently invest said they do not have enough money to invest. However, the majority (54%) of young people (18 to 24s) said that they do not understand or have the know-how to start investing.[6]
The main issue that European non-investors feel holds them back from investing is not having enough money (65%). A third of non-investors also said not having enough knowledge about investing was a concern (33%). People’s age noticeably drove which reason they cited: The majority (56%) of Generation Z and Millennials give a lack of knowledge or understanding6 as the main reason for not investing, whereas the main reason for of over 35s was a perceived lack of money (69%). These results highlight how more financial education is needed. People across many European countries can invest with as little as one Euro as digital investment apps offer access to a variety of low-cost investment opportunities.[7]
More people are investing
More Europeans are now investing and expected to invest within the next 12 months. Since 2023, research indicated that 11 million new investors have emerged across Europe. 34% of Europeans hold investments in 2024, a relative growth of 11% compared to 2023.
We see three investment phases across Europe. Across the Nordics, there is now high investment participation with one in two people investing. The UK has seen the largest increase year on year, with a 21% increase (from 30% in 2022 to 36% in 2024), equivalent to 3.5 million new investors. Germany and Switzerland remain key established investment markets in Europe, with over one in three investing in Germany. Germany has also seen significant growth since 2022, with 3.2 million new investors in Germany (14%). Southern Europe still has room to run, with investment penetration at 28% in both Spain and Portugal, as well as 29% in both France and Italy.
More non-investors have started investing in the UK this year than any other market surveyed, with 3.5 million new investors in the UK since our last survey (21%). Indeed, investors in the UK have seen a growth in confidence, with the 2nd highest increase in investor confidence since our last survey (38%).
Online platforms drive access
The vast majority of Generation Z and Millennials that hold ETFs are using digital platforms (online investment platform/broker, bank’s online investment platform or a Robo Adviser)[8] to invest in ETFs (80% for 18-34s). Looking at a breakdown of digital ETF investing options, those aged between 18 and 34 have a significantly higher preference for investing through an online investment platform or broker than their older counterparts (56% vs 37% amongst 35+). Over 35s are also engaging digitally, however they are most likely to invest in ETFs through their bank’s investment platform than younger ETF owners (40% vs 32% amongst 18-34s).
Regardless of age, across Europe, online investment platforms clearly dominate, with 44% of Europeans that hold ETFs preferring to access via an online investment platform or broker, 37% selecting their bank’s online investment platform and 13% selecting a Robo Advisor. Only 21% indicated they would prefer to speak to an adviser at their bank and 13% using an Independent Financial Advisor (IFA).
Some clear geographical trends emerge. The preference for digital platforms is stronger in some Northern European markets, with 70% of UK ETF investors using them, 62% in the Netherlands and 69% in Denmark. In markets with deeper ETF penetration, such as Germany and Switzerland, ETF investors are more inclined to use their bank’s online investment platform (Germany 43%, Switzerland 45%).
In markets with lower ETF investment participation rates such as like France (8%), Italy (15%), and Spain (13%), a significant proportion of ETF investors prefer consulting an advisor at their bank (48%, 36%, and 31%, respectively).
In fact, when considering any “in-person” method to trade ETFs (meeting with an advisor at a bank or an independent financial advisor), France ranks highest, with 60% of people preferring in person, as opposed to 31% across Europe.
87% of ETF holders in the UK are choosing digital trading platforms as the main way to trade ETFs. People in the UK are significantly less likely to consult an advisor at their bank (11%) than the rest of Europe (21%).
Investing through funds
A majority (51%) of investors are using investment funds[9] including mutual funds and ETFs to access investments in Europe. Stocks and shares remain the most held investment option for European investors (55%), with a 6% increase in the number of investors from 2022 to 2024. One in five (20%) European investors now own an ETF, growth levels equate to 3.7 million new ETF investors compared to 2022. In fact, ETFs were the fastest growing investment surveyed, with a 19% increase sincethe previous survey. Women have contributed most to this growth (37% versus 13% for men). Younger investors (those aged 18 to 34) are significantly more likely to own an ETF (24%) versus those over 35 (19%).
A majority (66%) of investors hold stocks and shares. Over 55-year-olds are more likely to invest in stocks and shares (76%) compared to 52% of 18–34-year-olds.
The UK has seen the highest increase in ETF ownership across Europe (57%). Additionally, more people are expected to start investing in ETFs in the next year, with the UK’s predicted growth in new ETF investors expected to be the 2nd highest in Europe (1.3 million new investors). Nearly two in five of these predicted new ETF investors do not currently hold any investments (39%). However, 35% of respondents who do not currently invest in ETFs said they would be encouraged to enter the market with a greater understanding of the product.
Interesting rates
Bond ownership was one of the fastest growing investment categories surveyed (8%) compared to 2022. Nearly one in five investors in Europe hold either government or corporate bonds (17%). This reflects the higher yield environment of the last year. For the first time since 2007, more than 80% of fixed income sectors are yielding over 4%.[10] This demand for bonds also shows growing individual investor sophistication to recognise the impact of interest rates and knowledge of how to access bond investments.
Crypto is mainstream
We are seeing a shift towards cryptocurrency in Europe, as just over one in five investors signalled investment in cryptocurrencies (22%). The growth of cryptocurrency ownership has been most pronounced among women, with an 18% increase in female ownership year-on-year (compared to 4% among men). The top markets for crypto ownership include Portugal, where 43% of respondents who invest hold crypto (second most popular investment after shares), as well as the Netherlands (40%) and Switzerland (34%).
Notes:
1.Definition of an investor within this report: A respondent who currently has any of the following investment products: stocks and shares, investment/mutual fund (e.g. single strategy fund or multi-asset fund, etc.), bonds (e.g. Government or corporate bonds), exchange traded funds (ETFs), managed investment portfolio by a digital investment platform/robo adviser, crowd funding/venture capital or cryptocurrency.
2 Increases based on comparison to ‘Next wave of ETF investors’ survey conducted by YouGov between 12 August 2022 and 8 February 2023, using UN Population figures for 18+
3 BlackRock People & Money / YouGov Plc. All figures, unless stated otherwise, are from YouGov Plc. Sample size: 36,730 adults across Austria, Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and UK (any references to Europe in this report refer to these 14 markets). Fieldwork was undertaken between 15th March – 10th May 2024. The survey was carried out online. Figures given an even weighting to produce an ‘average’ value. All calculations conducted by BlackRock. 2022 data refers to the previous ‘Next wave of ETF investors’ survey conducted by YouGov Plc between 12 August 2022 and 8 February 2023. Population figures are based on United Nations 2024 and 2022 Revisions of World Population Prospects report (18+ adults). The content and assumptions in this report are based on data derived directly from these surveys.
