Most people delving into the stock market have likely heard some version of the often-spouted advice, 'time in the market is more important than timing the market'. Perhaps such thinking drew investors to ever-popular exchange-traded fund (ETF) Vanguard Australian Shares Index ETF (ASX: VAS) in 2022.
The ETF transcended the generations last year to come in as the most popular ASX share on trading platform Selfwealth.
From Gen Z to Baby Boomers, all were intent on buying the Vanguard Australian Shares ETF. But not nearly as many were keen to sell despite a tough year for both it and the broader S&P/ASX 300 Index (ASX: XKO).
The ETF's unit price tumbled 8.5% over the year to 31 December 2022 while the ASX 300 slumped 6%.
So, why might Aussies of all ages have flocked to the struggling fund in 2022? Let's take a look.
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Vanguard Australian Shares ETF proved popular in 2022
The Vanguard Australian Shares ETF broke barriers last year, enticing Selfweath users of all ages to buy in – and seemingly stay in.
Out of all trades in the popular fund completed on the platform, 87% were buys. Selfwealth CEO Cath Whitaker commented on the buying phenomenon, which also occurred across several other ASX ETFs:
This shows that rather than buy the share and then trade it in the same year, the vast majority are holding onto the stock.
This is exactly what we are encouraging our cohort to do – build their wealth over time.
Interestingly, aside from the Vanguard Australian Shares ETF, Baby Boomers' attention was mainly grabbed by blue-chip shares.
BHP Group Ltd (ASX: BHP) shares came in as the second most popular buy among those aged 58 and over using the platform. All remaining stocks making up Baby Boomers' top 10 buys are housed on the S&P/ASX 20 Index (ASX: XTL).
Meanwhile, younger investors doubled down on the ETF theme. Zip Co Ltd (ASX: ZIP) was the only traditional share to appear among Gen Z's top 10 buys on the platform, coming in as the generation's eighth most popular.
So, could 2023 be a better year for the apparently enticing Vanguard Australian Shares ETF?
Of course, it's impossible to predict what might happen on the market over the coming months. However, my Fool colleague Tristan recently dived into a few factors that could benefit the ETF this year.
