Survey shows younger Canadians favour non-traditional strategies to meet financial goals
Research conducted by BetaPro by Global X, using the Angus Reid Forum, highlights a trend among Canadian investors toward accepting higher risk for the possibility of increased returns.
The survey indicates a growing interest in non-traditional investment strategies. 27 percent of respondents are considering taking on more risk to achieve financial objectives.
This percentage rises to 41 percent among investors aged 18 to 35, who face different financial challenges compared to earlier generations. In contrast, only 12 percent of respondents over 56 expressed a willingness to invest in riskier assets.
Nearly half (45 percent) believe the economy is in decline, and 35 percent report lower confidence in meeting their financial objectives compared to the previous year.
Geopolitical developments, such as a potential Federal Election, influence investor sentiment, with 35 percent seeing it as a potential opportunity for increased returns, while 19 percent see reduced opportunities.
Opinions on Donald Trump’s return to office are divided, with 34 percent expecting increased opportunities and 33 percent anticipating reduced ones.
Online investors, including those identifying as ‘Do-It-Yourself’ traders, exhibit a higher willingness to explore investments with greater risk-reward ratios.
46 percent and 53 percent of these investors are open to strategies such as cryptocurrencies, options, and leveraged ETFs.
Respondents cite faster achievement of financial goals (30 percent) and advice from trusted sources (28 percent) as key factors in their decisions.
Chris McHaney, EVP and head of Investment Management and Strategy at Global X, said that alternative strategies are being explored to address investment challenges.
BetaPro leveraged ETFs provide up to two times the performance—or inverse performance—of underlying investments for a single day.
These products are intended for short-term use, as compounding effects may cause deviations from underlying indices over longer periods.
McHaney described BetaPro ETFs as daily trading tools for those seeking to manage risk and respond to market changes.
These ETFs allow investors to execute strategies such as short selling without the complexities associated with margin accounts.
BetaPro by Global X is managed by Global X Investments Canada Inc.
