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When markets fall Gen Z don’t panic sell, they buy - NAB
01 December 2025
Economy and Markets
Young investors take long-term approach during market downturns
A new generation in the market
nabtrade’s Director for Investor Behaviour Gemma Dale said for years, Gen Z investors were too young to show up meaningfully in data.
When markets drop, Gen Z investors don’t get spooked. They run towards the action, and invest differently to previous generations, new nabtrade data shows.
“That’s changed,” said Ms Dale.
“With steady cash flow and new tech at their fingertips, they’re investing earlier, and more often than their parents did.
“Opening an account and buying shares now takes minutes on your phone. Brokerage fees that once cost $90 are now often $15 or less.
Gemma Dale, nabtrade’s Director for Investor Behaviour
When markets fall, they don’t panic sell, they buy
Remember the old cliché that everyday investors, “panic and sell” when markets go south? Gen Z is proving that wrong.
When the ASX drops by 1% or more, here’s what our youngest investors do:
- More people jump back in: we see 16% more active traders
- They trade more often: daily trades go up by 14%
- They love Exchange-Traded Funds (ETFs): ETF trades rise to 38%, making up almost 4 in 10 of all trades each day
- They go bigger: each trade is about 5% larger than usual
Solving choice paralysis with ETFs
The biggest barrier for new investors has always been knowing what to buy. Banks. Resources. Tech stocks. The options can be overwhelming.
Gen Z has sidestepped this “choice paralysis” by turning to ETFs, simple bundles of shares that track an index like the ASX200 or S&P500.
Ms Dale compares it to ordering a meal deal.
“You get the burger, fries, and drink together instead deciding what you want, and paying for each item separately,” said Ms Dale.
Real-world example
Trump’s Liberation Day tariffs brought with them nabtrade’s biggest trading day ever. The market was falling hard. Instead of selling, Gen Z doubled down, buying ETFs at cheaper prices.
“Investing on days the market dips means you’re buying quality assets at a discount,” said Ms Dale.
Why does this matter?
Ms Dale commented that starting young is the biggest superpower in investing. Even putting away small amounts in your 20s can snowball into something much bigger over decades thanks to compounding.
“For example, if someone invests $50 a week from age 20, by 65 they could have around $1.5 million, thanks to compounding and market growth*. Even better if they buy on dip days,” said Ms Dale.
“Do the same at 30, and you’ll retire with just over $500k.
“Starting 10 years earlier adds close to one million dollars to the final balance.
“The greatest asset young investors have is time. By investing regularly, even just a little, they can ride out the ups and downs of the market and still come out ahead.”
For 20-year-old investor Phyrell Simpson, getting started early came from family encouragement.
Gen Z investor Phyrell Simpson
“Dad always said just have a go, so I opened my first account at 18,” said Mr Simpson.
“I figured the sooner I started, the more time I’d have to grow my money.”
Now 20, Phyrell now holds multiple ETFs, including ASX and NASDAQ funds, with ETFs making up more than 70% of his portfolio.
“ETFs felt like the safest way to begin. They spread your risk, and you don’t need to pick individual stocks.”
“I’ll continue to keep adding to my portfolio regularly. Even $50 a week adds up over time - time does the heavy lifting.”
How Millennials compare
Millennials show a similar appetite for ETFs, with a 39% increase in ETF trading on dip days. But they’re generally more cautious overall, total trades only rise about 9% when the market falls.
The difference? Life stage.
“Millennials are often saving for a house or juggling a mortgage, which makes their investment habits less aggressive than Gen Z,” said Ms Dale.
“You can’t really afford to lose or wear the pain a younger person might be able to.”
Notes:
- *$50 a week invested on the ASX at an average 9% annual return.
- The information in this story is of a general nature and has been prepared without taking into account your personal objectives, financial situation or needs. Consider whether it is appropriate for you.
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