Roberta Katz, senior research scholar at Stanford’s Center for Advanced Study in the Behavioural Sciences, defines Gen Z as those born in the mid 1990s to around 2010. McKinsey & Company puts the range at 1996 to 2010, while Deloitte — which conducts an annual global survey of Gen Z and millennials — defines Gen Z as those born between 1995 and 2006.
Whatever the definition, there is broad agreement that the circumstances shaping this generation are unusually distinct. They grew up with the Internet, personal computers, smartphones and social media and came of age amid repeated global disruptions like the Sept 11 attacks in 2001, the Iraq war that began in 2003, the Sars outbreak in 2003, the Global Financial Crisis from 2008 to 2010, Covid-19 in 2020, and the uncertainty that followed.
Access over ownership
For investors and asset managers, understanding this mindset is critical, whether it is better to engage Gen Z as a new generation of investors or to position themselves in response to a broader shift in lifestyle priorities.
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Gen Z’s entry into adulthood has been shaped by high inflation, rising housing prices and record car costs. Unlike previous generations, whose milestones included home and car ownership and starting a family, Gen Z is redefining what success looks like. In Singapore in the 1990s, the 5Cs — cash, car, credit card, condominium and country club — defined the good life. Today, many Gen Zers aspire less to own material things and more to fund the lifestyle they want without worry.
For instance, cars, once a symbol of progress, are increasingly seen as a discretionary luxury rather than a necessity. As at the latest Feb 4 tender, certificate of entitlement (COE) prices stood at $106,320 for category A certificates, $110,890 for category B certificates and $116,000 for the open category E premium. Category A certificates are for smaller and less powerful cars as well as electric vehicles (EVs), while category B certificates refer to larger and more powerful cars and EVs.
For 20-year-old Alexa, who is currently studying, buying a car or learning to drive is a luxury. “I have gone without a car my whole life, and I don’t see a need for it. When I need to get somewhere quickly, I book a Grab or Gojek ride,” she says. Similarly, 27-year-old Rachel, an auditor, adds: “Cars are a luxury because Singapore public transport is accessible and convenient and easy to use, and the COE exists.”
“To the layman who sees a car as nothing more than a machine to get from A to B, ride-hailing apps offer the same result, less the effort,” says another student, 24-year-old Shafiq. “Using crude math, it would take an individual several thousand rides before they’ve spent as much as they would purchasing a car. And that’s not to include petrol, insurance, road tax and servicing.”
With the increasing reliance on public transport and private-hire rides, investors should look at counters that will benefit from the trend, such as Nasdaq-listed Grab and locally-listed ComfortDelGro and SBS Transit.
“With more expensive COEs, ComfortDelGro should benefit in terms of higher ridership growth as more people turn to public transport (MRTs or buses) and taxis,” says Eric Ong of Maybank Securities. He adds that companies such as locally-listed Skylink Holdings, which leases commercial vehicles, may also see spillover demand.
Shekhar Jaiswal of RHB Bank Singapore also believes ComfortDelGro will benefit from Gen Z deprioritising car ownership due to the high cost of COEs, along with the growing availability of point-to-point mobility and car-sharing options.
“This trend further reinforces Singapore’s shift towards shared and public transport modes, which should support public transport ridership growth and play to ComfortDelGro’s strengths in bus and rail operations,” he says.
This could also benefit ComfortDelGro’s taxi and private-hire segments, as younger users may rely more on ride-hailing and taxis for flexible point-to-point travel without the financial burden of car ownership, Jaiswal adds. The trend doesn’t necessarily mean ComfortDelGro will benefit entirely, given the high competition within the point-to-point space. “The extent of ComfortDelGro’s gains will hinge on its ability to maintain pricing discipline, expand its fleet and enhance its platforms to compete with other larger players.”
Tech and digital exposure
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Investors should also look at online companies, since tech and digital platforms shape Gen Z’s lifestyle and spending. According to a 2024 report by American health data management firm Harmony Healthcare IT, Gen Z spend an average of six hours and 27 minutes on their phones, the highest among the generations so far.
A CNA study published in February also found that local teenagers spend nearly 8.5 hours a day on their screens, with the top three being education or work, followed by entertainment and social networking.
Given these habits, companies with exposure to e-commerce, digital entertainment, social media and online ecosystems should stand to benefit. In e-commerce and digital marketplaces, investors can look at US-listed Amazon and Sea, which includes the e-commerce platform, Shopee, within its businesses.
In devices, companies like Apple, Microsoft and Dell Technologies provide the hardware and software Gen Z rely on. Platforms centred on content and entertainment, such as 17Live, Meta, Netflix and Sea — which also owns online games developer Garena — may see long-term growth opportunities.
As the world progresses to a digital-first economy, companies with exposure to data centres also look set to benefit from rising demand from AI, data storage, cloud computing and others.
In Singapore, listed names with exposure to data centres include pure-play REITs, Digital Core REIT, Keppel DC REIT and NTT DC REIT, as well as Mapletree Industrial Trust (MINT), CapitaLand Ascendas REIT (CLAR) and CapitaLand India Trust (CLINT), which also have data centres within their portfolio.
Other names to note are CSE Global, which provides data centre electrification solutions and US-listed Digital Realty Trust, Equinix and GDS Holdings, to name a few.
How Gen Z invest
Beyond lifestyle trends, it is also worth looking at how Gen Z are investing, as they reveal their financial priorities and opportunities for asset managers and investors.
According to a study by Visa, “Gen Z Decoded: Their Voices, Your Insights”, Singapore’s young people place a stronger emphasis on attaining financial independence and security compared to their peers within Asia Pacific, with 47% ranking it as a priority compared to the region’s average of 33%.
“Gen Z in Singapore are deeply rooted in managing their finances, practising mindful spending and tracking their expenses,” reads the Aug 26 release. The study, which was based on 501 in-depth quantitative interviews with 560 Gen Z consumers across 14 markets, including Singapore, defined Gen Z as those between 14 and 27 years old.
The study also found that 34% of Gen Z save money whenever they can, while close to 40% see the importance of saving up for milestone events, including marriage and purchasing a home.
Separately, the Youth Future-Readiness Index, conducted by CGS International and Republic Polytechnic, found that one in six local youths showed interest in non-traditional investment products such as crypto assets. The study, which polled 1,729 youths aged 18 to 35 years old this year, also highlighted a gender divide in future-readiness behaviours.
Female youths scored higher for digital financial literacy, which refers to the ability to assess online financial products, manage risks and make sound financial decisions, and in sustainability literacy, while male youths have a higher future preparedness score.
This divergence is also evident on the ground. Fahim Ahmed, a 20-year-old Republic Polytechnic student, says he invests in cryptocurrencies such as XRP and gold, the latter influenced by his family. Fahim’s interest in crypto, however, stems largely from online influencers and the perception that money can be made from the asset.
However, Fahim describes his crypto investments as “just something on the side”, adding that he has yet to explore other investments, such as equities, fully. Once he has more money, he will be able to look into other opportunities, he says.
In contrast, 20-year-old Bella, another Republic Polytechnic student, prefers to focus on building her savings and putting them into a high-yield savings account before taking on investment risks. “I feel like for investing, you need to do a lot of research, and it’s more riskier, compared to savings accounts… You need to know a lot about what is going on in the market and how much you need to put in to earn a certain profit. The markets may also crash, and you never know what will happen.”
Market practitioners report similarly varied behaviours. Alexander Thorhauge, head of retail business at Maybank Securities, notes that younger investors are open to taking more risks in their investments. “Data and observations show that Gen Z investors are starting their investment journeys earlier and are more open to newer channels with a relatively larger appetite for risk,” he says. “This is reflected in their interest and typically higher capital allocation to higher risk asset classes than seen in previous generations.”
In equities, Thorhauge observes that the US market remains the primary area of interest for Gen Z, who are largely influenced by social media, peer recommendations and low entry costs.
Yujun Lin, CEO of Interactive Brokers Singapore, finds that Gen Z in Singapore are “savvy investors with an appetite for international stocks and stock options, including Singapore.”
Phillip Securities director, George Keh, who oversees the brokerage’s contract for differences (CFD) department and young investors, echoes this, noting that the group’s Gen Z investors are “highly global” in their outlook.
“Based on our data, the US market is their top choice, followed by Singapore, Hong Kong, the UK and China,” says Keh. “This shows a clear preference for both established global markets and familiar local opportunities, reflecting their balance of international exposure and home market confidence.”
Equities dominate Gen Z’s portfolios with over 93% of accounts trading in stocks. Exchange-traded funds, or ETFs, the second-highest asset class traded, are also gaining traction, says Keh. Meanwhile, bonds and crypto-linked ETFs are niche with less than 1% of Gen Z positioned in these assets. “In my opinion, this suggests that Gen Z investors may still prefer traditional assets over speculative or fixed-income products.”
He adds that most of the younger investors at Phillip Securities take a long-term view, with 97% of them classified as long traders. In contrast, only 2.5% of these investors engage in day trading, which underscores a focus on wealth accumulation and financial stability rather than short-term speculation.
This ties in with StashAway’s Gen Z investors, who are taking a “measured, long-term approach” to investing, says Jeremy Foo, Singapore country manager at StashAway. According to Foo, over 50% of StashAway’s Gen Z clients invest through the platform’s flagship General Investing portfolio, which offers diversified exposure to global equities, bonds and gold.
Unlike millennial investors, who tend to be more aggressive, most Gen Z at StashAway chose balanced or conservative risk levels. He attributes this to Gen Z saving up for medium-term goals such as buying a house.
Based on data from StashAway, top single ETF picks include the S&P 500, gold and semiconductors. “[This is] a mix that reflects a balance between growth, stability, and conviction in tech sectors that will shape the future,” he says.
Gen Z are also responding in a level-headed manner when it comes to market volatility. “In the three days after Liberation Day, when Trump’s tariff announcement sparked market volatility, we saw a small uptick in deposits from Gen Z,” says Foo. “Rather than pulling back, they leaned in, recognising that short-term dips can be an opportunity for long-term investors to buy at lower prices. Such a level-headed approach will make these Gen Z successful long-term investors.”
Adventurous investors
Isaac Lim, chief market strategist at Moomoo Singapore, says Gen Z tend to be more adventurous investors and are open to exploring a wider range of investment opportunities compared to the generations before them.
“Thanks to the Internet, information in this era is not just easily accessible, it is also fast-flowing. With access to better tools, expert insights and innovative financial products, Gen Z are accelerating their wealth-building journey earlier in life than the older generation,” says Lim, citing data from an Arta survey that more Gen Z investors are investing earlier compared to Millennials (born between 1981 and 1996) and Generation X (born between 1965 and 1980).
Like Maybank’s Thorhauge, Lim of Moomoo also observes that US equities, particularly those in technology and consumer, are popular, as these are companies Gen Z interact with often. At the same time, they are increasingly exploring local and regional opportunities for diversification.
A Motley Fool survey of 2,000 investors found that 45% of Gen Z favour growth stocks while Gen Z and millennials are three times more likely to hold speculative stocks at 13% and 14% respectively, compared to 4% of baby boomers and 9% of Gen X. Day trading is also more common among Gen Z and millennials at 16% and 14% respectively, compared to 6% and 2% of Generation X and Baby Boomers (born between 1946 and 1964).
Beyond equities, Gen Z investors are incorporating other asset classes in their portfolios. “ETFs, mutual funds and money-market funds are popular as cost-effective ways to manage risk,” says Lim.
He adds that younger investors are also experimenting with cryptocurrencies and other alternative assets, although these form a smaller portion of their portfolios.
“The classic 60/40 portfolio is passe,” says Lim, noting that Gen Z investors these days mostly have a core portfolio that consists mainly of traditional asset classes and another portfolio that includes alternative assets such as trading cards, watches, sneakers, toys and comic books.
“These items will generally be sent for ‘grading’ by a respectable company and given a serial number. Once this part is done, the ‘graded’ item will then be priced accordingly and depending on open market forces, the price will appreciate accordingly,” he adds.
Taking bigger risks
Billy Toh, regional head of retail research at CGS International (CGSI), sees Gen Z as taking higher risks compared to other generations. To him, this is because they grew up in an era where investments in crypto produced multifold returns compared with traditional investments.
“When we talk about 7% or 10% returns, they are probably not interested. [Instead], they are looking at things that are more attractive in terms of returns,” he says. Toh also believes Gen Z should start by looking at their home market, as that is what they are most familiar with. The Singapore market also offers many alternatives — whether it’s a growth stock, a dividend play, or regional exposure — although the returns may be less attractive than in other markets such as the US.
“I do think that Gen Z [may] experience a certain pain in their investment journey and perhaps bear the brunt of that learning curve before they learn their lesson. It’s similar to how, I think, some of the previous generations got burnt in certain crises like the GFC (Global Financial Crisis). I think that those cycles will have to repeat themselves.”
Ultimately, Gen Z is more than a new customer base or a fresh source of capital. This generation could reshape demand and redefine value. Investors who spot the shift early will be best placed to ride the next wave of trends. — Additional reporting by Ruth Chai and Douglas Toh
