The passive investment trend is picking in the global investment space too. Data by fintech platform Winvesta shows 25 per cent investors on its platform are invested in exchange traded funds (ETFs).
In its 'Winvesta Investor Pulse Report', the fintech firm that provides Indians a platform to invest overseas, mentions that the majority of investors have taken exposure in QQQ (Nasdaq 100) ETF, followed by VTI (Vanguard Total Stock Market Index), ARKG (ARK Genomic Revolution), SPY (S&P500), and ARKK (ARK Innovation) Geographical ETFs. American depositary receipts (ADRs) make about 10 per cent of the investments on its platform.
ETFs hold about 14 per cent share in overall asset under management (AUM) on Winvesta. "The AUM in ETFs has grown 250 per cent in the last six months, while the AUM in stocks has grown by over 400 per cent," says Prateek Jain, Co-founder, Winvesta.
"We have seen ETF investing is more popular among matured investors. 85 per cent of the ETF AUM on our platform is held by investors in the 35+ age group," he adds.
The average ticket size for ETF investments is about $700 or Rs 50,000.
The fintech platform sensitises investors about the passive route to the US stock investment through blogs. They have a bouquet of 900-plus US ETFs for Indian investors.
"Investors who are not aware of individual stocks in the US markets but are interested in investing in themes can utilise ETFs. Investors looking for exposure to a particular sector, or geography should also consider ETFs for investment. Winvesta has ETFs available for Fintech (FINX), Robotics (BOTZ), UK (EWU), Brazil (EWZ), S&P 500 (SPY), and US Bonds (AGG), etc. that offer a wide choice to investors," says Jain.
Among individual stocks, Tesla, Nio, and Riot Blockchain are the top three most-bought US stocks by Indians, the Winvesta report finds.
According to the study, 'Technology' stocks continue to be preferred by most Indians, followed by 'Electric Vehicles' and 'Blockchain' sectors.
'Winvesta Investor Pulse Report' is a nationwide study that encapsulates the investment behavior among Indians collected from investors on the Winvesta platform between March 27, 2020 and March 20, 2021. The investors are 18-70 years old, living in Tier 1 and 2 cities.
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