How Gen Zers Are Reshaping Investing

At a Glance:

Portfolios are evolving: Younger high-net-worth investors are moving beyond traditional stock-and-bond allocations and embracing alternatives and new asset classes.
A “barbell” mindset is emerging: Many balance liquidity with higher-risk, higher-growth investments.
Volatility is less of a deterrent: Market swings are often viewed as opportunities, not setbacks.
Social influence is real: Social media and influencers play a significant role in how young investors discover and evaluate opportunities.

A New Mindset

If you ask wealth managers what’s changing most about their younger client base, you may hear a common answer: the mindset.

Many high-net-worth Gen Z investors approach investing with a fundamentally different perspective than previous generations. They tend to prioritize investing over achieving more traditional financial milestones^[1], show less interest in the conventional concept of a “balanced portfolio,” and are more focused on exploring newer investment types, such as private markets, real estate, and digital assets.

“Instead of focusing on beating the market, many younger investors are prioritizing other goals – like building a business, supporting causes they care about, or achieving long-term financial independence,” said Andy Schuler, Investment Management Director for PNC Private Bank. “These investors want strategies aligned with their broader objectives, rather than portfolios designed solely to outperform an index.”

The “Barbell” Approach

From a structural standpoint, many younger investors favor a more barbell‑style approach: maintaining significant liquidity through accessible cash, while allocating a larger share of capital in higher-risk, higher-return – and often less liquid – investments, and generally avoiding moderate-risk, middle-of-the-road strategies.

They also tend to be more comfortable with market volatility.

“This is a generation that has already lived through multiple market disruptions over the past two decades,” Schuler noted. “Volatility isn’t new to them, and in many cases, they’re more inclined to view market pullbacks as opportunities rather than reasons to retreat.”

Investing with Purpose

Schuler notes that socially driven investing continues to play a meaningful role in conversations, particularly among younger high‑net‑worth investors who prioritize aligning their capital with their values and beliefs.

“For many, investing isn’t just about maximizing returns – it’s also about expressing views on innovation or broader social themes,” he said. “The evolution of investment products and customization tools has made it easier to reflect those preferences within a disciplined portfolio.”

The Social Influence

One leading force accelerating these changes is social media.

Gen Z is the first generation to grow up fully immersed in digital platforms, and that influence is clearly reflected in their investing behavior. Platforms such as Instagram, YouTube, and TikTok – along with trends like #RichTok – play an outsized role in how they discover and evaluate opportunities. One recent study even found that 55% of Gen Z investors only started investing because of social media^[2].

At the same time, social media can also lead to emotional decision-making and amplify a “fear of missing out (FOMO)” when a particular stock or investment gains sudden popularity.

“FOMO does tend to surface around specific securities or highly visible market trends,” Schuler notes. “That’s where advisors add value – helping clients take measured, intentional exposure while keeping their core investment strategy anchored to long-term goals.”

Schuler also emphasized the importance of distinguishing genuine opportunity from hype:

“With so much information available – especially online – it’s easy to get caught up in short‑term or highly speculative investments like meme stocks, special purpose acquisition companies, and headline‑driven IPOs,” he said.

Mirar al futuro

What distinguishes high-net-worth Gen Z investors is not just a greater appetite for risk, but a broader definition of what investing can achieve. They are combining financial objectives with personal values, using portfolios not only to build wealth but also to support the lives they want to lead.

And while some young investors may have a different outlook or approach compared to prior generations, the underlying fundamentals of a successful financial plan remain unchanged.

“The most successful outcomes still tend to come from balancing innovation and opportunity with discipline, diversification, and a clear understanding of how each investment supports their broader financial plan,” Schuler said.

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