Retail Investors Shift to Riskier Bets on Small Caps & AI

Friday, Jun 6, 2025 10:18 am ET1min read
In May, retail investors took a break from buying in April and shifted to partial profit-taking, increasing bets on fixed-income ETFs and returning to the options market. They favored healthcare and energy sectors, small-cap stocks, and AI-related themes. Retail investors' returns were up 4.9%, but their portfolios are down 2.6% YTD.

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