GraniteShares study shows UK share traders see the best opportunities in the Energy and Technology sectors.
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Will Rhind, Founder and CEO at GraniteShares
- Nearly half regularly trade the FTSE and two out of three trade individual stocks
- But ETFs and ETPs are used by nearly one in three and 15% never trade UK indices
UK retail share traders are still most likely to trade the FTSE-100 and individual stocks but new research* from ETP provider GraniteShares shows there are signs they are changing their views on trading methods and indices.
Nearly half (47%) of retail share traders focus on the FTSE-100, the research shows, with 66% trading by buying and selling individual stocks.
However increasing numbers are switching to other trading methods and other indices. Nearly one in three (30%) trade through Exchange Traded Funds and Exchange Traded Products while 15% of regular UK share traders never use UK indices.
By contrast 29% trade the FTSE 250 and 25% trade the All-Share with just 14% trading through the AIM market, 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.
Around 12% of those questioned say they trade shares through spread betting while 9% trade through Contract for Differences (CFDs).
GraniteShares study shows UK share traders see the best opportunities in the Energy and Technology sectors. Around 46% chose the Energy sector while 44% picked the Technology sector. By contrast the Consumer Discretionary sector was chosen by just 8%.
Other popular sectors included Information Technology chosen by 36% and Utilities chosen by 35%. Consumer Staples was only favoured by 14% while just 16% chose Materials.
Will Rhind, Founder and CEO at GraniteShares said: “UK retail investors have traditionally focused on the major UK indices and buying and selling individual stocks and that remains the case to some extent.
“It is fascinating to see that changing with the rise in the use of ETFs and ETPs as well as significant numbers no longer trading UK indices at all and preferring to look to overseas markets for opportunities. At GraniteShares we have seen stocks like Tesla and Nio become the most popular names for traders this year”.
“That has also been our experience and we have seen a growing number of sophisticated investors in the UK looking for wider opportunities and different ways to trade. That is reflected in the demand for products such as short and long ETPs which provide increased flexibility.”
Source: ETFWorld.co.uk
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