Aussie investors now hold more Tesla than Woolworths (ASX:WOW)

Overseas shares are increasingly popular among Australian investors, especially when they’re looking for decarbonisation and technology themes.
The post Aussie investors now hold more Tesla than Woolworths (ASX:WOW) appeared first on The Motley Fool Australia. –

With the help of $0-brokerage platforms, plenty of Australian investors have been getting into US shares the past couple of years.

According to National Australia Bank Ltd. (ASX: NAB)’s popular online trading platform nabtrade, foreign businesses that are at the forefront of “decarbonisation and technology” are especially popular.

So much so that Australian investors now hold more Tesla Inc (NASDAQ: TSLA) shares than blue chip S&P/ASX 200 Index (ASX: XJO) stocks like Woolworths Group Ltd (ASX: WOW).

“To see an international stock, particularly a newer, more volatile company like Tesla, just outside the top 10 holdings on nabtrade is extraordinary,” said nabtrade investor behaviour director Gemma Dale.

“The trend of buying direct international shares has been growing at a much higher rate than domestic shares for the last 5 years.” 

Perhaps as a collective indictment on the behaviour of Australian businesses, more nabtrade investors now own shares in the electric vehicle maker than ASX carbon emitters like Rio Tinto Limited (ASX: RIO) and Woodside Petroleum Limited (ASX: WPL).

Dale said overseas stocks are scratching an itch that can’t be easily done with local shares.

“We are seeing a rise in interest in specific sectors that are not well represented on the ASX, such as solar energy, electric vehicles and green hydrogen.”

Similar to Tesla, Saxo Markets this week revealed fellow electric car maker Rivian Automotive Inc (NASDAQ: RIVN) was the 4th most traded stock among Australians on its platform last month.

Rookie investors aren’t necessarily speculators

According to nabtrade, the stereotype that younger, inexperienced investors have debuted in the market the past 18 months looking for a quick buck doesn’t necessarily hold true.

“New investors still prefer to start their investing journey on the ASX, with ASX 200 ETFs in the top 10 buys, along with the big four banks, BHP Group Ltd (ASX: BHP) and CSL Limited (ASX: CSL).”

According to Dale, investors start looking elsewhere after they create a basket of “safe” local stocks.

“Once investors have established a domestic portfolio – either an ETF or a handful of stocks, they are starting to look offshore for growth.”

Younger investors were also more likely to practise buy-and-hold. Nabtrade figures showed 80% of generation Y users holding their shares for more than 4 months, while just 70% did that among baby boomers.

Nabtrade has seen an incredible 200% growth in new accounts over this year. This rate peaked in 2020 at 500% from new investors “buying the dip” during the COVID-19 crash that year.

The post Aussie investors now hold more Tesla than Woolworths (ASX:WOW) appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Why Tesla stock jumped on Tuesday

Why are Aussies going mad for this $0 revenue company?

Woolworths (ASX:WOW) share price rises as boss courts API pharmacists

Fed up with term deposits? How to get 10% income from ASX shares

What experts are saying about the Woolworths (ASX:WOW) share price in 2022

Motley Fool contributor Tony Yoo owns CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!