Retail trading volumes have fallen 20% since summer and 45% since late 2025, Goldman Sachs said in an October 25, 2026 assessment. The decline points to less active participation by individual investors in US equities, although the firm said household investment demand remains strong.
Key Takeaways
- Individual investors’ share of US equity trading fell to about 9%, from 15% in late 2025.
- Goldman distinguished weaker trading activity from continued strength in household investment demand.
- Hedge fund exposure also retreated, while Goldman’s long-short basket recently fell 4.2%.
Table of Contents
- Retail trading volumes show a smaller individual-investor footprint
- Household demand is not the same as trading turnover
- Conclusion
Retail trading volumes show a smaller individual-investor footprint
The retreat is visible in both trading volume and market share. Individual investors now account for approximately 9% of total US equity trading, compared with 15% in late 2025—a decline of six percentage points.
Those measures answer different questions. The volume figures describe the reduction in retail trading activity, while the market-share figures show that individuals also represent a smaller portion of overall equity turnover.
Goldman also highlighted a pullback in hedge fund exposure. Its long-short basket fell 4.2% recently, although no precise measurement period was specified. That basket’s performance is a separate measure from the amount of exposure hedge funds have reduced.
| Item | Details |
|---|---|
| Volume comparison with summer 2026 | Retail trading activity down 20%. |
| Volume comparison with late 2025 | Retail trading activity down 45%. |
| Assessment date | October 25, 2026. |
Household demand is not the same as trading turnover
Goldman’s assessment paired the trading slowdown with continued strength in household investment demand. The distinction matters: fewer transactions do not, by themselves, establish that households are withdrawing money from equities or reducing their holdings.
The Federal Reserve’s Financial Accounts instrument classifications distinguish corporate equities, mutual fund shares and hedge fund shares. Those separate categories provide context for discussing investment holdings, but the classification guide does not verify Goldman’s current trading-volume estimates or its assessment of household demand.
The figures therefore support a narrower conclusion than a broad household exit from stocks: individual investors are trading less and account for a smaller share of turnover, while Goldman still sees resilient investment demand.
Conclusion
The next trading-volume and household-demand readings will help distinguish a continued slowdown in turnover from a broader change in investment appetite. Goldman’s October assessment identifies the former, not a confirmed household withdrawal from equities.
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