Welcoming More Americans to the Investing Table

As we enter the holiday season, there’s much to celebrate in the world of investing. More than two million American households became new mutual fund investors over the past year!

This expanding investment table reflects a dynamic market where more Americans are invited to share in a growing investment pie. The rise in mutual fund, exchange-traded fund (ETF), and other fund ownership highlights how the investment landscape is evolving to include a more diverse and inclusive group of Americans, ensuring a place at the table for all.

The recent surge in ETFs and other investment products adds to the abundance first offered by mutual funds and allows investors to mix and match products to suit their needs—just like adding more sides to your Thanksgiving plate. The total number of fund investors has continued to rise, and many Americans hold a diversified mix of funds, emphasizing a “both/and” approach rather than an “either/or” mindset.

In recent decades, mutual fund ownership has grown among middle-income households and across all racial and ethnic backgrounds. This diversity brings new experiences to the financial table. 

Today, 41% of households that purchased their first mutual fund shares after 2019 are Black, Hispanic, or Asian—a major shift from the 13% of first-time fund buyers before 1990. The share of ETF-owning households in these groups mirrors the U.S. population overall, underscoring a financial landscape that’s become increasingly representative of the broader American experience.

Just like every family holiday, the “kids’ table” is an exciting place to be. Gen Z investors are arriving at the table in greater numbers, bringing with them a commitment to long-term investing. More than one-third of Gen Z households own mutual funds, with over a quarter also investing in ETFs. Many young investors build their portfolios through employer-sponsored retirement plans, but some also seek out professional guidance. This generational mix enriches the table, offering fresh perspectives on financial security and long-term growth.

This Thanksgiving, we’re grateful for an investment landscape that’s expanding in size and diversity, creating more opportunity for every American to find a place at the financial table. Low-cost funds and accessible, innovative products are helping households from all walks of life pursue financial independence, solidifying funds as a pillar of Americans’ financial health.

At Secure Financial Future, we believe in the power of accessible investments to make a meaningful difference in the lives of everyday Americans. Join us in advocating for policies that foster a financial landscape where everyone has a seat at the table. Together, let’s ensure that mutual funds continue to play a role in securing brighter futures for all Americans.

Secure Financial Future invites you to join our action network. Together, let's champion policies that safeguard your investments and pave the way for a future marked by financial confidence and prosperity.