Global X report shows demand for higher returns is powering-up risk appetite
Almost three in ten Canadian investors want higher returns and are willing to increase the risk to find new opportunities.
New research conducted by Angus Reid on behalf of BetaPro by Global X has found rising interest in non-traditional investments to help them meet their financial goals. This is highest among younger investors with 41% of those aged 18-35 willing to take on riskier investments compared to just 12% of those over 56 and 27% across all participants.
Expanded risk tolerance is also higher among DIY investors with around half considering options such as cryptocurrencies, options, and ETFs that use leverage.
“Whether an investor is looking to hedge their portfolio or take advantage of market pullbacks, we’re seeing much more openness to taking on alternative investment strategies which may help overcome barriers compared to traditional strategies,” said Chris McHaney, EVP, Head of Investment Management and Strategy at Global X.
The survey also reveals concern about the economy with 45% believing it is in decline and 35% saying that they are less confident in achieving their financial goals than they were a year ago.
Global X Investments Canada Inc. has launched a new platform to help investors understand their way around short-term tactical trading vehicles. The firm’s s leveraged, inverse, and inverse-leveraged ETFs are designed to offer an alternative for investors who are comfortable with riskier investments with the potential for higher rewards.
“BetaPro ETFs are designed for sophisticated traders who see volatility as an opportunity, not a threat,” added McHaney. “Our goal is to equip Canadian investors with the tools and education to strategically manage risk and pursue short-term growth, whether the market is climbing or falling.”
