GraniteShares ETP : New research shows the UK’s cost of living crisis is putting the squeeze on share trading with investors cutting back or stopping to save cash.
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Will Rhind, Founder and CEO at GraniteShares
- Nearly one in three have cut back or stopped trading to save money
- But volatility is a bigger deterrent for share traders
Around one in three (30%) of regular investors who have bought shares in the past year say they have been affected by the pressure on incomes from soaring inflation and rising energy bills.
The nationwide study found 24% have cut back on how much they invest because they cannot afford to lose money while 6% say they have stopped completely because they were losing money which they could not afford.
However nearly two-thirds say they are not worried by the cost of living squeeze in relation to their share trading while 7% say they are trading more as the money they make helps boost their income to keep up with inflation.
The research for GraniteShares, which offers UK sophisticated investors a suite of index ETPs tracking FAANG stocks and a suite of Short and Leveraged Single Stock Daily ETPs tracking some of the most popular companies in UK markets, found stock market volatility has had more impact on regular traders.
Around one in eight (12%) say they have stopped trading since the Ukraine crisis increased market volatility while 29% admit to losing money but are still trading. A lucky – or skilful – 11% claim to have profited from volatility and have increased the amount they invest.
Will Rhind, Founder and CEO at GraniteShares said: “Share trading is risky, so it is understandable that regular investors are becoming more cautious about the amount they invest.
“The majority however are sticking to their investment strategies despite the cost of living squeeze and heightened volatility.
“It remains the case that there is a growing number of sophisticated investors in the UK who see opportunities from volatility and that is reflected in the demand for products such as short and long ETPs which provide the flexibility needed to help navigate volatile market swings on both the long and short sides.”
GraniteShares offers a total of 106 exchange traded products (ETPs) listed on national exchanges in UK, France, Italy & Germany. They consist of a suite of index ETPs tracking FAANG stocks and a suite of Short and Leveraged Single Stock Daily ETPs tracking some of the most popular companies in UK US and European markets. Other product launches last year included the world’s first leveraged single stock ETP on NIO, the electric vehicle maker and distributor.
Its FAANG, GAFAM and FATANG product suite, offers long, short and 3X leveraged ETFs on FAANG, GAFAM and FATANG indices and can be traded in a single ticker symbol via ordinary brokerage accounts. FAANG consists of Facebook, Amazon, Apple, Netflix, and Google while GAFAM includes Google, Apple, Facebook Amazon, and Microsoft and FATANG covers Facebook, Amazon, Tesla, Apple, Netflix, and Google
ETPs offer a pure way to gain exposure to top tech companies in the U.S. market. Indices are equally weighted and rebalanced quarterly.
Source: ETFWorld.co.uk
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