What investment products attract the interest of retail investors in 2025?

2025 has been a shaky year so far, starting with Trump’s presidency and global uncertainty investor interests have been shifting very often. Democratisation of investing became possible as accessibility to financial markets never has been this easy.

As a result, even sophisticated products like crypto ETFs and futures have been available for retail investors. Together with easy access to markets, risks have also increased and retail investors have to find a balance between innovation and risks to protect their capital in the long run. Let’s list and briefly overview some of the most popular investment products preferred by retail investors in 2025.

Trending investment products in 2025

Before we delve into the most popular investment products it is important to understand the difference between investing and trading. Financial trading is more focused on short-term gains, while investing is about long-term value. There might be subtle differences between different asset classes like FX trading vs Stock trading, but overall trading is about quickly opening and closing trading positions to capitalise on short-term movements.

AI hype coupled with the introduction of crypto ETFs enabled retail investors to quickly gain exposure to modern technology trends and jump on the bandwagon. The USA elections were a great time for gamblers to bet on candidates for short-term gains.

In-depth analysis of popular products

Let’s analyse each of the popular products in more detail.

Crypto ETFs

The SEC's (Securities and Exchange Commission) approved spot Bitcoin ETF in 2024 which eliminated the need for digital wallets to buy and save crypto assets. This attracted a much larger investor base including institutional investors and contributed to rising popularity of crypto ETFs. Surely, volatility and regulatory uncertainties under the SEC leadership still continues to make investors fear cryptos but this was overall very bullish for the digital currencies.

Event Contracts

Many platforms saw 100M+ traded contracts in 2024 US election bets. While gambling might not be attractive for some investors, many risk tolerant investors tried to forecast election results. This investing opportunity blurred lines between investing and gambling which makes event contracts super risky for beginners.

Factional Bonds

Investors got an opportunity to democratise Treasury strategies using an automated bond ladder which is accessible for retail investors. Bond ladder is a strategy where investors buy bonds with staggered maturity dates (1,3,5 years). As each bond matures, owners reinvest the proceeds, balancing steady income, interest rate risk, and liquidity. Bonds tend to offer high yields (5%+ on 10-year Treasury bonds) amid stabilized interest rates.

Thematic ETFs

Thematic Exchange-traded Funds are funds that invest in specific industries like AI, clean energy cybersecurity, and healthcare. These trends dominate the market right now with their attractiveness for retail investors who are sensitive to news and major economic trends. For example, Global ESG-focused ETFs now manage more than 40 trillion dollars of assets.

Emerging trends shaping the retail demand

With the rising popularity of AI and modern technologies many platforms started to introduce free, AI-powered trading and investing tools once exclusive to Wall Street and institutional investors. Retail allocations to private equity doubled in 2024 which was a result of growing accessibility of complex products for retailers. To defend their capital, investors often opt to bond and dividend stocks and these products have become popular among retail investors.

Risks of investing

Many beginner investors over-speculate and as a result up to 90% of traders lose money in active trading. Event contracts, cryptos, and meme coins amplify  those risks considerably. Regulatory uncertainty around crypto assets makes it possible for many scams and fraud to lure beginner investors to their platforms. Non-investors who are trying to invest in get-rich-quick stocks and coins lack financial knowledge, making them easy prey for scams. This gap in knowledge also acts as a barrier for investors as well.

The bottom line

Retail inventors in 2025 have a large list of opportunities with the main contributing factor being accessibility and rapid advancements of modern technology. However, with increased accessibility comes greater risks. In 2025, AI powered tools, crypto ETFs and thematic ETFs have attracted a growing number of retail investors.

However, the lucrative nature of many products cou[pled with regulatory uncertainties, also introduced new risks. As innovation continues to reshape financial markets, retail investors should find balance between opportunities and risks to protect their capital in the long term.