Gen Z investors move from meme-stock trading to index funds and retirement accounts

Many Generation Z investors who jumped into the markets during the pandemic-era meme stock craze have shifted toward traditional, long-term strategies such as index funds and retirement accounts. The change is reflected in individual stories like that of Mamadou-Hady Sow, who opened a brokerage at 18, bought cryptocurrency and stocks including Netflix and at one point traded meme stocks such as GameStop.

Now 23, Mr. Sow said he focuses on maximizing 401(k) and IRA contributions, with most of his portfolio in index funds and the remainder in dividend ETFs and individual stocks. Surveys and industry research cited in the article report broader trends: Vanguard found Gen Z is saving for retirement earlier than past generations, and Charles Schwab’s 2025 Modern Wealth survey said more than 60 percent of investors with less than five years’ experience consider themselves more patient now.

Schwab’s Jonathan Craig said the firm has “seen many of these clients take an interest—some for the first time—in their 401(k) or retirement accounts and make informed investing choices.” Other young investors described similar paths. Danny Guerra, 27, used well-timed bets in GameStop and AMC to pay off student loans but now favors Vanguard index funds and smaller crypto allocations.

Austin Payne, 26, who traded frequently in 2020–21, said he shifted to long-term investing through his 401(k).

Key Topics

Business, Gen Z Investors, Meme Stocks, Index Funds, Charles Schwab, Vanguard