ETFs: Young People Are Paving the Way for a More Accessible Stock Market

According to a study by Lise, more than a quarter of French people now know that they can invest in the stock market through ETFs. And it is the 18- to 34-year-olds—far ahead of their older counterparts—who are leading the way, even though a clear gap between women and men persists.
 

Simple, diversified, and low-cost, ETFs—exchange-traded funds that track an index such as the CAC 40 or the MSCI World—are experiencing spectacular growth in Europe, where they have just posted their best-ever half-year inflows. In France, where stock market literacy remains limited, this momentum is also beginning to take hold. According to the study “The French and the Stock Market” conducted by Lise (Lightning Stock Exchange) among 1,000 people, more than a quarter of the French (26%) now know that it is possible to invest in the stock market through ETFs.
 

A Generation Embracing ETFs
The main driver of this trend is the younger generation. Contrary to popular belief, it is not the most experienced investors who understand these products best, but the youngest. 16% of 18- to 34-year-olds say they understand ETFs well enough to consider investing in them, compared with only 6% of those aged 65 and older—nearly three times fewer. Young people are also the most likely to spontaneously identify ETFs as a way to invest in the stock market (29%, compared to 20% among older adults).
 

This greater knowledge goes hand in hand with greater familiarity with the markets: younger generations are the ones who invest the most and feel the most confident about taking the plunge. This trend is fueled by the widespread adoption of brokerage apps, educational content on social media, and the accessibility of these funds, which can often be held within a stock savings plan (PEA) or a life insurance policy. “In just a few years, ETFs have become the gateway to the stock market for a new generation,” observes Mark Kepeneghian, CEO of Lise. “When a product is simple, diversified, and accessible, young people embrace it.”
 

Democratization Still Faces Obstacles Due to the Gender Gap
Good news: ETFs transcend social boundaries. While those in higher socioeconomic classes account for 51% of French people who say they are familiar with these products, those in lower socioeconomic classes (31%) and the economically inactive (18%) together make up nearly half of this audience. This confirms that ETFs are now one of the most accessible products for exploring the markets, regardless of income level—provided investors are willing to set aside savings they won’t need in the short term.
 

This enthusiasm among younger people isn’t just a matter of a “connected generation.” It also reflects a new approach to saving: faced with low-yield savings accounts and increasingly difficult access to homeownership, some 18- to 34-year-olds see the stock market as a way to grow modest capital over the long term. ETFs, with minimum investment amounts of just a few dozen euros and fees reduced to a fraction of those charged by actively managed funds, perfectly meet this need.
 

To turn knowledge into action, savers have several options available: a standard securities account, a stock savings plan (PEA)—which offers tax advantages after five years—or life insurance, which increasingly includes ETFs in its portfolios. The choice depends on the investment horizon and the desired tax treatment. However, the product offerings must keep pace: long confined to securities accounts, index funds are gaining ground in life insurance policies and retirement savings plans, thereby broadening their potential audience.
 

One obstacle remains, however: ETF investing is still overwhelmingly a male domain. More than twice as many men as women report understanding ETFs well enough to invest in them (15% versus 6%), and overall, 68% of French people who are familiar with ETFs are men. This finding reflects a broader reality: fewer women invest in the stock market, and they more often feel ill-equipped to get started—even though studies show that, on average, they achieve good results once they do invest. Finally, it’s important to remember that, despite their simplicity, ETFs are still equity investments exposed to the risk of capital loss: diversification and a long-term investment horizon are an investor’s best allies.