Goldman Sachs estimates that individual, self-directed investors now hold roughly $12 trillion of equity assets in U.S. markets, a stake the firm says equals about 10% of the total market value of U.S. corporate equities.
In a client note, analyst Daniel Chavez pointed to trading desk data from Goldman Sachs showing an uptick in retail activity accompanying the market rally. The bank's figures show retail volumes increased 28% since mid-April, while a tracked basket of popular retail stocks posted a 29% gain over the same timeframe.
Goldman Sachs also highlighted regulatory and market-structure developments that could sustain higher activity levels. The firm noted that the replacement of pattern day trader rules with less stringent margin requirements is likely to encourage further retail participation.
On market share, retail trading now accounts for about 20% of total U.S. equity trading volumes. That figure compares with roughly 15% a decade ago and remains below the 2021 peak of 24%. Goldman Sachs emphasized that much retail order flow is routed through specialized wholesalers, meaning that institutional investors interact directly with only a portion of retail trades.
Chavez also described a recurrent behavioral pattern among retail participants. The bank's data show increased inflows into index-linked exchange-traded funds during market selloffs in 2020, 2022 and 2025, indicating a tendency for retail investors to buy during declines.
On leverage, Goldman Sachs reported that retail margin debt at selected brokers stands at 1.8% of customer assets, a level that matches the prior high reached in 2021.
While noting the expanding footprint of retail investors, the bank cautioned about risks associated with heightened retail presence. Stocks that attract concentrated retail interest tend to carry elevated valuations and display above-average volatility. Goldman Sachs warned that elevated retail participation may influence how quickly and accurately stock prices incorporate fundamental information, and that such stocks have shown greater underperformance following earnings misses.
These findings underscore the growing role of self-directed investors in U.S. equity markets while also flagging specific market-structure and valuation dynamics that may merit attention from market participants and observers.