"For years, retail investors were dismissed by some on Wall Street as "dumb money." That typically referred to those prone to trading on hype, or chasing trends rather than company or industry fundamentals, or responding late to big market moves. That's no longer the case. An analysis of where retail investors put their money last year shows they outperformed two of the most popular, professionally managed index funds, SPY and QQQ,"
"Many Americans have long invested in the stock market, although largely hands-off through managed funds in retirement plans, such as a 401(k). But over the last decade, the advent of mobile trading apps, zero-commission trading, stock market-focused communities on social media and online tools for education and research has helped usher in a new era of do-it-yourself trading in stocks, crypto and other investments."
Retail investors outperformed major index funds SPY and QQQ in 2025 while generating $5.4 trillion in trading activity across stocks and ETFs, a nearly 47% increase from the prior year and the highest since at least 2014. The rise of mobile trading apps, zero-commission brokerage, social-media investment communities, and online educational tools drove a surge in do-it-yourself trading across stocks, crypto, and other assets. COVID-19 lockdowns accelerated new participation as many young investors used trading apps to fuel meme-stock rallies in GameStop, AMC, and other names, and multi-year market gains encouraged broader retail involvement.
Read at Fortune
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