- Gen Z investors have the boldest return expectations, with almost one in five expecting gains of 20–30 per cent this year
- Younger investors are leaning into tech, healthcare and consumer sectors, while older investors stay loyal to home-grown assets
- Gen Z are the most eager to keep learning, with over a third wanting to deepen their knowledge of AI-powered strategies
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Confidence and optimism is on the rise
Australian retail investors have reported strong portfolio confidence and rising optimism across Q3, but younger generations are setting the most ambitious expectations. That’s according to new data from trading and investing platform eToro’s latest Retail Investor Beat survey. The survey of 1,000 Australian retail investors reveals that Aussies are overwhelmingly confident in their investments, regardless of age and investing experience. Four in five (80 per cent) Australian investors say they are confident in their portfolios, and even when it comes to the generation with the lowest confidence, Gen X, 77 per cent are confident.
Amidst this broad optimism, Gen Z investors stand out in particular for their sky-high return expectations. Almost one in five (19 per cent) expect their portfolios to deliver returns of 20–30 per cent in 2025, with the generation’s average expected return sitting at almost 12 per cent, the highest of any age group. Meanwhile, older investors anticipate more modest annual returns, with Baby Boomers’ average expected return sitting at 7 per cent, while the Silent Generation sits slightly higher at nearly 8 per cent.
Chart 1: Average annual return each generation expects to generate from their investments
| Average annual expected return | |
| Gen Z (18-27) | 12% |
| Millennials (28-43) | 10% |
| Gen X (44-59) | 8% |
| Boomers (60-78) | 7% |
| Silent Generation (79+) | 8% |
Josh Gilbert, Market Analyst at eToro, says: “It doesn’t surprise me to see so much confidence from retail investors in their portfolios right now. We’ve seen record highs from equity markets, crypto and gold, which means most portfolios are going to be shining green at the moment. That is undoubtedly giving investors a level of euphoria, but investors should remain realistic that these assets don’t go up forever.
“At the same time, Gen Z’s broad optimism of outsized returns is linked to their long-term horizons, giving them more freedom to take risks. Younger investors pursue growth and higher risk for higher potential returns, while older investors, closer to retirement, are focused on preserving wealth through steady investments.”
Younger investors are chasing growth
The generational divide is stark when it comes to sector and asset allocations. Nearly half (46 per cent) of Gen Z investors hold healthcare stocks compared to just 22 per cent of Boomers and 20 per cent of the Silent Generation. It’s a similar story in tech; 57 per cent of Gen Z and 55 per cent of Millennials are exposed to the sector, versus only 18 per cent of Boomers and 11 per cent of the Silent Generation.
Younger investors are also driving interest in consumer sectors, with 45 per cent of Gen Z invested in both discretionary and staple consumer goods, while older investors show far less enthusiasm. Only 15 per cent of Boomers and 11 per cent of the Silent Generation invested in discretionary consumer goods. These two generations are more interested in staple consumer goods, as 23 per cent of Boomers and 24 per cent of the Silent Generation have invested, but this is still far from the enthusiasm of Gen Z investors.
Chart 2: The percentage of each generation invested in selected sectors
| Healthcare | Technology | Discretionary consumer goods | Staple consumer goods | |
| Gen Z (18-27) | 46% | 57% | 45% | 45% |
| Millennials (28-43) | 38% | 55% | 33% | 36% |
| Gen X (44-59) | 30% | 40% | 21% | 30% |
| Boomers (60-78) | 22% | 18% | 15% | 23% |
| Silent Generation (79+) | 20% | 11% | 11% | 24% |
Domestic equities remain a favourite among older investors, with 58 per cent of Baby Boomers and 76 per cent of the Silent Generation holding investments in the asset class, versus 47 per cent of Gen Z and 45 per cent of Millennials. Meanwhile, foreign equities are more popular among the younger cohort of Australian investors, with 43 per cent of Gen Z and 40 per cent of Millennials holding investments in this asset class, versus just 19 per cent of Baby Boomers and 18 per cent of the Silent Generation.
Knowledge gaps remain across generations
The survey also highlights the investment topics that Aussie investors find most difficult to understand. When looking at different investment topics, Gen Z reports the biggest challenges in understanding tax rules (28 per cent), investment fees (24 per cent) and AI-powered strategies (23 per cent).
Meanwhile, all other generations cite crypto and blockchain technology as their top challenge, with more than half of Boomers and the Silent Generation (51 per cent and 56 per cent respectively) saying this is the hardest topic to grasp. For Gen X, this generation of investors finds understanding tax rules and crypto technology equally challenging (34 per cent).
AI-powered investment strategies are also a source of confusion across all generations, particularly for Boomers (38 per cent) and the Silent Generation (36 per cent).
Chart 3: The investing topic each generation finds most difficult to understand
| Cryptoassets and blockchain technology | Tax rules | AI-powered investment strategies | Investment fees | |
| Gen Z (18-27) | 22% | 28% | 23% | 24% |
| Millennials (28-43) | 33% | 30% | 26% | 15% |
| Gen X (44-59) | 34% | 34% | 24% | 14% |
| Boomers (60-78) | 51% | 29% | 38% | 9% |
| Silent Generation (79+) | 56% | 18% | 36% | 9% |
Younger Aussies are the most willing to bridge these educational gaps. Around one in three Gen Z investors plan to learn more about tax rules (32 per cent) and AI-powered strategies (36 per cent) in the next year, as well as cryptoassets (32 per cent). Almost another quarter (24 per cent) of them intend to better understand investment fees. By contrast, fewer than one in five Boomers intend to learn more about the topics they find tough, with only 14 per cent planning to learn about cryptoassets and blockchain tech, and a further 18 per cent planning to learn about AI-powered investment strategies.
Josh Gilbert adds: “What’s interesting is that despite their confidence, Gen Z are the most aware of their knowledge gaps and the most eager to close them. Over a third are planning to learn more about AI-powered investment strategies, signalling that they’re preparing themselves for a tech-driven future in investing.
“For older generations, crypto and blockchain remain the biggest blind spots, whereas younger Australians are increasingly comfortable exploring these areas. This underlines just how differently each generation engages with innovation and risk in today’s market.”
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This communication is general information and education purposes only and should not be taken as financial product advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial product. It has been prepared without taking your objectives, financial situation or needs into account. Any references to past performance and future indications are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication.