eToro highlights key traits of retail investor strategies
eToro finds long-term strategies remain strong
eToro, a popular trading and investment platform, has conducted a study revealing that retail investors worldwide are demonstrating resilience and strategic thinking amid ongoing market turbulence.
The study surveyed 10,000 retail investors from 12 countries. Its results, presented in the quarterly Retail Investor Beat report, show a strong commitment to long-term investing despite global economic uncertainty.
According to the data, nearly half of investors (48%) continue to follow their original investment strategies during periods of volatility, while 23% rebalance their portfolios. Only 9% choose to sell their assets, and 12% view market turbulence as an opportunity to buy more. These figures reflect a growing trend of maturity and patience among retail traders.
Investment horizons and rising confidence
A significant portion of respondents (52%) hold their investments for several years, while 9% are focused on decades-long positions. Short-term trading remains rare: only 2% invest for a few days, and 7% for a few weeks. Meanwhile, investor confidence is increasing—51% of respondents say they are on track to achieve their financial goals, the highest figure recorded since Q1 2023.
“Market turbulence that began earlier this year continues to test retail investors, yet the data shows they are sticking to their long-term strategies, demonstrating a level of discipline that contradicts outdated notions of retail investor behavior,” said Lale Akoner, Global Market Strategist at eToro.
Asset allocation and sector diversification
While the overall asset distribution remains steady—52% invest in domestic equities, 35% in foreign stocks, and 35% in cryptocurrencies—there has been a slight increase in holdings of commodities and bonds. The percentage of investors keeping their capital in cash has decreased by 1 point to 69%, indicating increased investment activity.
Investors are also increasingly diversifying across sectors. Interest has grown notably in consumer staples (+12%), followed by mining (+9%), materials (+8%), energy (+6%), and both financials and technology (+5%). This indicates a cautious but calculated shift toward more defensive and inflation-resistant sectors.
Geographic preferences and renewed interest in Europe
Interest in Europe has surged, with 26% of investors naming it the most attractive region for long-term returns—up 30% from the end of 2024. Support for the U.S. has declined from 45% to 41%. Interest in emerging markets, Japan, the UK, and Australia has also grown slightly, while trust in China fell from 24% to 22%.
Akoner noted: “European markets have often been overlooked as investors focused on US growth stocks. However, with economic policy uncertainty in the US and concentration risk in broader indices, more investors are turning to Europe to diversify and protect their capital. Attractive valuations, growth-oriented policies and recent strong performance in key sectors such as defence, energy and luxury goods are driving renewed interest in the region.”
As a reminder, eToro previously reported rising popularity in European defense stocks, which have outperformed U.S. tech giants in returns since the beginning of 2025.
