Trend barometer Shareholder Numbers

Just as a barometer measures air pressure, our Shareholder Numbers show the state of share culture in Germany. Many exciting developments can be tracked in this way. How has the number of young investors developed in recent years? And have women remained loyal to the stock market in 2023? These are the questions we explore in this article.

12.3 million investors invested in shares, equity funds and ETFs in 2023. The Shareholder Numbers have remained stable above the twelve million mark for the fourth year in a row. Despite a slight decline compared to last year, this means that around four million more people are now involved in the stock market than just a few years ago. 

The long-term trend in terms of equity culture is therefore positive. In recent years, many investors have realized that saving with shares can generate higher long-term returns than savings accounts, time deposits, etc. With a broadly diversified, long-term investment, annual returns of six to nine percent are possible on average – with the result that savings roughly double every eight to twelve years. So if you invest in long-term equity savings, you are doing something for more financial independence in old age or can fulfill special wishes such as a trip around the world or a motorhome.

Number of investors under 40 has doubled in ten years

If you look at the positive long-term trend, you can see that young investors in particular are driving it. Even if they were more inclined to sell shares, equity funds or ETFs in 2023, the number of young equity investors has doubled in the last ten years from around 1.8 million to a good 3.6 million. This is a great development, as it shows that the younger generation is taking care of its finances and relying on the potential returns offered by saving with shares. 

Young investors are investing more than the older generation in low-cost, passively managed exchange-traded funds (ETFs). These have become increasingly popular in recent years. Many finfluencers deal with ETFs. They are a popular investment topic in podcasts or videos and also on social media. In this way, young people are picked up where they preferably get their information. In addition, the many online brokers offer the digitally savvy younger generation very low-threshold access to the stock market. This probably explains why the proportion of ETF investors among the under-40s was a good 35 percent. Among older investors, only around 17 percent invested in ETFs.

Women remain loyal to equity investments on the whole

In addition to the investment behaviour of the younger generation, it is also worth taking a look at how women invested on the capital market in 2023. 4.7 million women were invested in shares, equity funds and ETFs last year. While 520,000 men sold their equity investments, the number of women remained almost constant. That is good news. However, there are still far fewer women investing in the stock market than men. While 7.6 million men own shares, equity funds or ETFs, only 4.7 million women do. Private pension provision with shares is particularly important for women, as they often pay less into state pension than men due to parental leave or part-time employment, for example, and therefore have lower pension entitlements in old age.

Start saving with shares now

Overall, the trend barometer shareholder figures indicate a long-term improvement in the general climate with regard to share culture – including regional differences and temporary lows. However, if you look at the population's commitment to equities in other regions of the world, such as the USA or Scandinavia, there is still significant potential for improvement.

The main challenge here is for politicians to set the right course and focus much more on returns from the equity market in pension provision. But we all have it in our own hands: saving with shares is possible and sensible even with small monthly savings amounts as part of a share, fund or ETF savings plan.

You can find the current Shareholder Numbers here.