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Charted: U.S. Retail Investor Inflows (2014–2023)

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A chart showing the daily net flows from U.S. retail investors into the stock market from 2014–2023.

Charted: U.S. Retail Investor Inflows (2014–2023)

U.S. retail investor sentiment hit a record breaking high at the start of 2023, buoyed by the sudden progress in AI capabilities.

Seen as a side show in the stock market for much of the last decade, retail investors are now an investing juggernaut to be considered with.

But how did they get there?

We look at data from Vanda Research, which tracks the daily net flows from U.S. retail investors (calculated using a 21-day moving average) between 2014 and 2023, visualized in the chart above.

Net Inflows from U.S. Retail Investors Break Records

Between 2014–2019, daily U.S. retail investor flows stayed range-bound, occasionally dipping below $200 million and peaking at around $700 million in 2015.

However, a series of factors propelled retail investors to new heights at the end of 2019.

No-fee investing platforms, along with pandemic-induced boredom from lockdowns, combined with federal assistance checks sent investors scurrying to the markets. By the first quarter of 2020, daily net flows hit $1.28 billion, nearly double the previous high in 2015.

YearPeak Daily Retail Flows
2014$620M
2015$730M
2016$605M
2017$640M
2018$480M
2019$820M
2020$1.28B
2021$1.42B
2022$1.32B
2023$1.51B

Sentiment—and flows—trended downwards for the rest of 2020, but in 2021, courtesy of the r/wallstreetbets inspired hedge fund short-squeeze, daily flows hit $1.48 billion, as investors piled into video game retailer GameStop.

For the next two years flows stayed locked between $1-1.4 billion per day, as inflation reared its head and bond yields began to climb.

However, in the first few months of 2023, coinciding with Q1 earnings season, U.S. retail investors came roaring back, this time shattering yet another milestone, with daily net flows crossing $1.5 billion a day in February—yet another all-time high.

And instead of going for battered-down childhood nostalgia companies, this time the retail army snapped up several tech picks, like Apple, Amazon and Nvidia, as well as dividend-paying Coca-Cola and AT&T.

Are U.S. Retail Investors Here to Stay?

Part of what is sending retail investor flows up on average is how many more Americans have been involved in the stock market in the last four years.

After the 2008 recession, American stock ownership trended downwards with about 55% investing in the market between 2009–2019.

Time PeriodAverage American Stock Ownership
1998–200861%
2009–201955%
2020–202358%

Source: Gallup poll.

This was less than both the previous decade (61%) and the beginning of the new decade, (58%).

And while a fair amount of younger investors came aboard the coordinated short-squeeze effort in 2021, many have stayed invested, diversifying their portfolios and aiming for long-term gains.

Where Does This Data Come From?

Sources: Vanda Research’s insights, published in the Financial Times and Gallup’s survey on American stock ownership.

Note: In the Gallup poll, surveyors were asked: “Do you, personally, or jointly with a spouse, have any money invested in the stock market right now—either in an individual stock, a stock mutual fund, or in a self-directed 401(k) or IRA?”

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The European Stock Market: Attractive Valuations Offer Opportunities

On average, the European stock market has valuations that are nearly 50% lower than U.S. valuations. But how can you access the market?
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1 day ago

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April 25, 2024

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Bar chart showing that European stock market indices tend to have lower or comparable valuations to other regions.

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The following content is sponsored by STOXX
An infographic showing that compared to North American and Asian stocks, the European stock market has lower or comparable valuations and low-to-moderate correlation.

European Stock Market: Attractive Valuations Offer Opportunities

Europe is known for some established brands, from L’Oréal to Louis Vuitton. However, the European stock market offers additional opportunities that may be lesser known.

The above infographic, sponsored by STOXX, outlines why investors may want to consider European stocks.

Attractive Valuations

Compared to most North American and Asian markets, European stocks offer lower or comparable valuations.

IndexPrice-to-Earnings RatioPrice-to-Book Ratio
EURO STOXX 5014.92.2
STOXX Europe 60014.42
U.S.25.94.7
Canada16.11.8
Japan15.41.6
Asia Pacific ex. China17.11.8

Data as of February 29, 2024. See graphic for full index names. Ratios based on trailing 12 month financials. The price to earnings ratio excludes companies with negative earnings.

On average, European valuations are nearly 50% lower than U.S. valuations, potentially offering an affordable entry point for investors.

Research also shows that lower price ratios have historically led to higher long-term returns.

Market Movements Not Closely Connected

Over the last decade, the European stock market had low-to-moderate correlation with North American and Asian equities.

The below chart shows correlations from February 2014 to February 2024. A value closer to zero indicates low correlation, while a value of one would indicate that two regions are moving in perfect unison.

EURO
STOXX 50		STOXX
EUROPE 600		U.S.CanadaJapanAsia Pacific
ex. China
EURO STOXX 501.000.970.550.670.240.43
STOXX EUROPE 6001.000.560.710.280.48
U.S.1.000.730.120.25
Canada1.000.220.40
Japan1.000.88
Asia Pacific ex. China1.00

Data is based on daily USD returns.

European equities had relatively independent market movements from North American and Asian markets. One contributing factor could be the differing sector weights in each market. For instance, technology makes up a quarter of the U.S. market, but health care and industrials dominate the broader European market.

Ultimately, European equities can enhance portfolio diversification and have the potential to mitigate risk for investors. 

Tracking the Market

For investors interested in European equities, STOXX offers a variety of flagship indices:

IndexDescriptionMarket Cap 
STOXX Europe 600Pan-regional, broad market€10.5T
STOXX Developed EuropePan-regional, broad-market€9.9T
STOXX Europe 600 ESG-XPan-regional, broad market, sustainability focus€9.7T
STOXX Europe 50Pan-regional, blue-chip€5.1T
EURO STOXX 50Eurozone, blue-chip€3.5T

Data is as of February 29, 2024. Market cap is free float, which represents the shares that are readily available for public trading on stock exchanges.

The EURO STOXX 50 tracks the Eurozone’s biggest and most traded companies. It also underlies one of the world’s largest ranges of ETFs and mutual funds. As of November 2023, there were €27.3 billion in ETFs and €23.5B in mutual fund assets under management tracking the index.

“For the past 25 years, the EURO STOXX 50 has served as an accurate, reliable and tradable representation of the Eurozone equity market.”

— Axel Lomholt, General Manager at STOXX

Partnering with STOXX to Track the European Stock Market

Are you interested in European equities? STOXX can be a valuable partner:

  • Comprehensive, liquid and investable ecosystem
  • European heritage, global reach
  • Highly sophisticated customization capabilities
  • Open architecture approach to using data
  • Close partnerships with clients
  • Part of ISS STOXX and Deutsche Börse Group

With a full suite of indices, STOXX can help you benchmark against the European stock market.

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Learn how STOXX’s European indices offer liquid and effective market access.

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