While many things have changed in society over the past few decades, one thing hasn't: it's still rude to ask someone outside your immediate family about their net worth. As such, it's difficult to ascertain just how your portfolio of ASX shares compares to others' investments.
So today, let's discuss what the average (more accurately, median) ASX share portfolio is.
We can do this thanks to a report from the ASX itself.
According to the latest ASX Australian Investor Study, 51% of Australians (or 10.2 million Australians) hold investments in addition to their family home and their super fund. Interestingly, that's up 13% since 2020. Of those 10.2 million investors, there are 7.7 million who hold ASX-traded investments.
Of those investors, 58% directly own ASX shares, with another 20% owning exchange-traded funds (ETFs). The gender divide sits at 58% men to 42% women.
When it comes to age, 49% of those 10.2 million Australian investors are 'wealth accumulators' aged between 25 and 49. Another 23% are 'pre-retirees' aged between 50 and 64, while retirees aged 65-plus account for another 20%. The remaining 9% are 'next generation ' investors aged 18 to 24.
But let's get to what we all want to know – the size of the median ASX share portfolio.
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What is the average size of an ASX share portfolio?
So according to the report, the median ASX share portfolio in 2023 sits at… $170,000. That's up more than 30% from the $130,000 average back in 2020.
It might come as no surprise to learn that investing experience is directly correlated to larger share portfolios too. The median portfolio size for an investor with ten or more years of investing experience reportedly sits at $850,000.
That compares with a median portfolio of $430,000 for investors with between five and ten years of experience. 'Next Generation' investors aged between 18 and 24 have a median portfolio size of $45,500, which on average contains $2,700 worth of cryptocurrency.
The report also found that 31% of all investors now identify as 'ESG (environmental, social, and corporate governance) conscious', while 52% of next-generation investors have either bought or sold an investment based on ESG factors over the past 12 months.
Now, if you're slightly put off by the median portfolio value of the typical ASX share portfolio, don't be discouraged. As long as your portfolio is invested in quality ASX shares or ETFs, you're harnessing the power of compounding, and your wealth should be just fine over time.
