Retail investors are returning to the U.S. market after two quarters of waning confidence, according to the latest Retail Investor Beat survey from trading platform eToro.
Retail Investors Rebuild Confidence in U.S. Market, eToro Finds
The study of 10,000 investors across 12 countries found that 38% now see the U.S. as offering the strongest long-term return potential, a 12 percentage point rise from the previous quarter.
At the same time, 43% of portfolios hold U.S. exposure, an eight-point increase and the highest level since eToro began tracking the data in 2023.
“Earlier this year, heightened concerns around political instability and macroeconomic uncertainty in the U.S. prompted retail investors to diversify more aggressively into Europe and emerging markets,” said eToro Global Market Strategist Lale Akoner.
“Now, as confidence in the resilience of the U.S. economy improves, we’re seeing a reversal of that trend. Portfolios are once again tilting back toward the U.S., reflecting recognition that, despite global diversification, the American market remains the cornerstone of global investing.”
While investors are rotating back into the U.S., enthusiasm for the so-called “Magnificent 7” tech stocks is moderating.
eToro said more respondents reported reducing exposure to companies such as Tesla, Nvidia, and Apple, citing concentration risk rather than doubts over long-term performance.
The survey also highlighted strong confidence in the U.S. dollar, with 83% of retail investors expecting it to remain the global reserve currency for the next decade despite recent weakness.
The findings suggest a more balanced approach among retail investors: re-engaging with the U.S. as a growth engine while managing risk through diversification.
