When my dad recently asked me why Gen Z investors aren’t interested in the same stocks and real estate ventures he’s spent his life pursuing, I realized he was genuinely baffled. “They’re reliable!” he insisted. And he’s right—historically speaking. But what he wasn’t seeing was the shift in values and experiences shaping how the youngest investing generation sees the world.
If you’ve noticed Gen Z investors shaking their heads at traditional assets favored by boomers—stocks in fossil fuels, large commercial real estate holdings, and even gold—you’re not alone. But why exactly is this happening, and what alternatives have captured their attention instead?
Let’s dive deeper into this intriguing generational divide.
Why boomer assets lost their charm
Gen Z’s investment choices aren’t merely a financial shift—they’re a statement. After talking with several Gen Z investors, I’ve found that it boils down to a profound value-driven rebellion against “business as usual.”
For instance, fossil fuel stocks were once the darlings of reliable dividend returns. But for a generation deeply aware of climate change, these companies symbolize environmental neglect. According to a Deloitte survey, around 43% of Gen Z respondents have actively avoided investments in companies linked to environmental damage
Similarly, large-scale commercial real estate, another staple boomer investment, has also seen its allure fade among Gen Z. The reason? Growing skepticism about sustainability, housing affordability, and corporate accountability. The flashy downtown offices and mega-malls just don’t align with Gen Z’s vision of the future.
One Gen Z investor I spoke with, 24-year-old software engineer Maya from Leeds, explained, “Real estate feels exploitative now. Big landlords and developers prioritize profit over affordable living conditions. Why should we support that?”
The gold standard—no longer golden?
What about gold? Historically, gold was considered the ultimate hedge against economic downturns. Boomers grew up hearing about its lasting value. But Gen Z investors see gold differently. Its extraction methods and associated human rights issues have put many off.
A recent Morning Consult report highlighted that just 17% of Gen Z investors view gold favorably as a long-term investment, compared to 50% of baby boomers. As Tom, a 22-year-old financial blogger from Manchester, told me, “It’s outdated. Digital assets make more sense in our tech-driven world.”
Crypto: the new digital gold?
If Gen Z isn’t interested in gold and fossil fuels, where exactly are they investing?
Cryptocurrencies are the obvious first stop. For many Gen Z investors, crypto isn’t just speculative—it represents financial freedom and decentralization. Platforms like Bitcoin and Ethereum align with their digital-first mindset, offering a sense of control not typically provided by traditional banking systems.
Moreover, Gen Z investors often see crypto as a means to challenge economic inequality. Alex, a 21-year-old student investor from Bristol, explained, “Cryptocurrency gives us a chance to escape the monopoly banks have on wealth creation. It feels democratic, despite its risks.”
ESG investing: putting values first
Beyond crypto, Environmental, Social, and Governance (ESG) investments are flourishing among Gen Z. Rather than simply maximizing profit, ESG funds focus on companies making positive impacts socially, ethically, and environmentally.
According to a recent CNBC survey, nearly 60% of Gen Z investors consider ESG criteria when making investment decisions. I spoke with Sarah, a 23-year-old investor from Glasgow, who said, “I’d rather put my money into a company actively trying to do good rather than one just chasing profits. It’s about long-term impact.”
The rise of alternative investments
Additionally, Gen Z investors are enthusiastic about alternative asset classes like fractional real estate, peer-to-peer lending, and startups focused on innovation. Platforms like Fundrise allow young investors to buy fractions of properties, democratizing real estate and making it accessible without needing huge capital.
Take startups, for example. Crowdfunding platforms such as Seedrs and Kickstarter have boomed, with Gen Z investors keenly backing innovative solutions ranging from renewable energy tech to social enterprises. These platforms speak directly to Gen Z’s entrepreneurial spirit and desire for meaningful, impact-driven investments.
Why the shift matters
The shift away from traditional assets isn’t merely about rejecting boomer-era investments. It’s reflective of deeper cultural and psychological trends, driven by Gen Z’s experiences growing up amid economic instability, climate anxiety, and digital transformation.
Gen Z investors aren’t just looking for returns—they’re seeking meaning. They’ve grown skeptical of traditional financial advice and increasingly prefer to learn from peers and online communities rather than financial institutions.
Final thoughts
Understanding this generational shift in investment priorities isn’t just interesting—it’s crucial for anyone hoping to engage with Gen Z financially. While boomers may feel puzzled or even frustrated by these changes, there’s wisdom in recognizing the validity of Gen Z’s perspectives.
As I explained to my dad, it’s not about rejecting past wisdom but evolving investment strategies to meet today’s unique challenges. Gen Z investors might just be ahead of the curve, redefining wealth creation in ways that benefit everyone, including future generations. And isn’t that what investing should ultimately be about?
