Last year, retail investors rocked Wall Street’s boat like never before. Even though retail investors have been putting their money to work in the stock market for well over a century, the short-squeeze mania that ensued in January and February of last year caused Wall Street to step back and pay closer attention to what people were buying.
But what’s even more intriguing than the stocks retail investors have in their portfolios is the companies and exchange-traded funds (ETFs) they continue to add to on a regular basis. Recurring investments are a true sign of conviction.
Image source: Getty Images.
Retail investors are regularly buying these stocks and ETFs
According to online-investing app Robinhood, which is especially popular with retail investors, a mix of 10 stocks and ETFs are the most popular recurring investments on its platform.
- Apple ( AAPL 2.90% )
- Tesla ( TSLA 4.78% )
- Vanguard S&P 500 ETF ( VOO 2.24% )
- SPDR S&P 500 ETF ( SPY 2.22% )
- Amazon ( AMZN 3.89% )
- Microsoft
- Vanguard Total Stock Market ETF
- Invesco QQQ
- Alphabet ( GOOGL 3.16% )( GOOG 3.11% ) (specifically Class A shares, GOOGL)
- Nvidia
A few things stand out from this list, some of which even I didn’t expect.
Image source: Apple.
Retail loves brand-name companies
Perhaps the least-surprising aspect of the 10 most popular recurring investments is that retail investors tend to flock to brand-name companies they know, trust, and/or use.
For instance, Apple is the largest publicly traded company in the U.S., with products especially popular with consumers. According to data from Counterpoint, Apple controlled 56% of U.S. smartphone market share in the fourth quarter, which was up from a 40% share in the third quarter of 2020.
Since introducing 5G capability on its iPhones, Apple’s sales, profits, and share price, have soared. Pretty much anytime Apple introduces a new product, you can count on long lines forming outside its stores.
Another perfect example of retail investors buying brand-name stocks they know and trust is Amazon. Based on an August report …….
Source: https://www.fool.com/investing/2022/03/17/10-most-popular-recurring-investments-of-retail/
