Digital investment tools and ETFs gain traction among families and new investors

There is a growing trend among parents to use joint or trust accounts with brokerage providers to invest in Exchange Traded Funds (ETFs) for their children. This approach aims to provide practical financial education by exposing youth to compound interest, costs, and market fluctuations through real-world decision-making rather than theoretical explanations.

To support this, financial platforms are developing products that offer parental oversight and limit choices to cost-efficient ETF portfolios. This shift toward digital asset management is also being driven by increased interest in investment products following government initiatives regarding retirement savings accounts.

Robo-advisors—automated, algorithm-based investment management services—are becoming a primary tool for beginners. These services allow investors to manage portfolios based on specific goals, risk tolerance, and time horizons with minimal manual effort, offering an alternative to traditional savings accounts for those seeking to outpace inflation.