Goldman Sachs: Retail Investors Hold $12T, Drive 28% Volume Surge
GS•Goldman Sachs estimates U.S. retail investors hold $12 trillion in self-directed brokerage accounts—about 10% of total U.S. corporate equity market cap—with retail volumes up 28% since mid-April and accounting for 20% of equity trades. The firm warns that elevated retail participation has driven higher valuations, volatility and greater post-earnings underperformance.
1. Retail Investors’ Equity Assets
Goldman Sachs data reveals retail investors now hold $12 trillion in self-directed brokerage accounts, equivalent to roughly 10% of the total U.S. corporate equity market value. This marks a significant growth in individual participation since the pattern day trader rules were relaxed.
2. Surge in Retail Trading Volume
Retail trading volumes have climbed 28% since mid-April, lifting retail share to 20% of total U.S. equity trading from 15% a decade ago, though still below the 2021 peak of 24%. Specialized wholesalers execute most retail orders, limiting direct institutional interaction.
3. Elevated Participation Risks
Retail margin debt stands at 1.8% of customer assets, matching the previous high from 2021, as the firm cautions that stocks popular with retail investors exhibit elevated valuations and volatility. These names have shown greater underperformance following earnings misses, raising concerns about price movements reflecting fundamentals.
