Bylined to Doug Morris, CEO of Sharesight.

Retail investing has evolved significantly over the past decade, and each generation has done so differently. Younger investors are increasingly being associated with app and online based platforms, high-cap US technology shares and sometimes even passing, trending and popular ‘meme stocks’. Older investors are more commonly linked with familiarity in the form of direct share ownership, dividend-paying companies and blue-chip stocks.

This generational split is often oversimplified and it can be tempting to describe younger investors as risk takers and older investors as more cautious, when the reality has more nuance. Rather, we are seeing a trend amongst younger investors wanting broader access and global exposure while older investors place a greater emphasis on stocks they are familiar with, income and direct ownership. Data from Sharesight reflects this appetite for broader exposure, with the two ETFs among its top 20 most-traded securities recording an average buy skew of 84.4% in 2026 year to date, compared with 69.9% across individual shares.

It’s important, however, to remember that neither approach is inherently better or worse – both come with their strengths, weaknesses, risks and rewards. The most important question must be whether investors, regardless of their age, understand the stocks they own and how each investment interacts and contributes to their long-term goals.

THE TYPICAL YOUNGER INVESTOR PORTFOLIO

For many younger investors their entry to the market might not be from a single UK-listed company, it is now more likely to be through an ETF, a US share, a themed fund or fractionally through app-based investing. This reflects just how accessible retail investing has become, allowing investors to build exposure to global markets within minutes, on their mobile phones, and with relatively small amounts of money.

ETFs have become particularly important in this shift, giving younger investors broad exposure without requiring them to build portfolios stock by stock.

Younger investors are also more likely to take a global view, with many showing stronger interest in US equities, technology companies and funds that track international markets.

Accessibility can also create overconfidence in new investors, a portfolio containing several ETFs may appear well diversified on the surface but underneath it might be heavily exposed to the same underlying companies, sectors or currencies – giving a false sense of security.

The same challenge applies to more speculative holdings. Younger investors may be more comfortable owning shares that are popular online, including ‘meme stocks’. These positions may form only a small part of a portfolio, but they can have a large impact when markets move sharply. Understanding their actual risk and return contribution is critical.

THE TYPICAL BOOMER INVESTOR PORTFOLIO

Older investors are more likely to favour direct ownership of companies they know, particularly established dividend payers. Blue-chips, banks, energy and utility providers traditionally appeal to older investors as they tend to provide steady dividends and present less risk – they tend to avoid the riskiness of ‘meme stock’ and passing investment trends.

Direct ownership gives an investor a clearer sense of what they own at company level, making it easier to track their investments and stocks that pay dividends – this can be attractive for the contingent that relies on side income. For many older investors, having clear visibility on their income is just as important as investment growth.

Portfolios built over many years can become overconcentrated without the individual investor realising. Holding a portfolio for a significant length of time can lead to complacency within stock-picking – say an investor has historically seen gains in US tech stock, they may unknowingly direct their portfolio to being heavily concentrated in this area and it only takes one event to destabilise the industry and have significant impact on their income. Familiarity is what older investors often seek for reassurance, but it does not always equal diversification.

Older investors may hold shares across multiple brokers, paper records, dividend reinvestment plans or inherited portfolios as legacy holdings. These structures can make it difficult to see true performance, especially once dividends, broker fees, and currency effects are taken into account.

WHY CLARITY MATTERS MORE AS PORTFOLIOS EVOLVE

As investors move through life, their portfolios usually change. Younger investors may start with ETFs and higher-growth holdings, then gradually add more income-producing assets. Older investors may begin with individual shares and then seek diversification, lower volatility and more reliable income.

A portfolio that made sense for a thirty-year-old may no longer be appropriate when they reach sixty due to significant life changes, adjustments and goals. At the same time, a portfolio built for income in retirement isn’t relevant for someone still in the early stages of their career.

This is where portfolio tracking becomes increasingly important. Investors need to understand capital growth, dividend income, fees, currency effects, asset allocation and diversification in one place. They also need to see how ETFs and direct shares interact, rather than viewing each holding in isolation. This way they can truly understand what they hold, where they may overlap or if they present a false sense of diversification.

THE FUTURE OF INVESTING

The next phase of retail investing is not defined on whether investors choose to start or expand using ETFs or individual stocks. It will be defined by whether they can make sense of their increasingly complex portfolios and the tools they use to do this.

Younger investors need to look beyond ease of access and understand where their risk actually is and older investors need to ensure that familiar holdings and income strategies still serve their long-term goals. Both groups need to assess performance after dividends, fees and currency movements, rather than just relying on headline figures.

The tools used by investors must evolve alongside their portfolios. As retail investing becomes more global and multi-platform, fragmented record and income keeping is not enough. Better investing starts with better visibility, and investors who understand the full picture of what they own will be better placed to make confident decisions over time.

For more information about Sharesight, please visit: https://www.sharesight.com/uk/