Retail investors recorded the largest single-day net sell-off of stocks since 2020, shifting toward ETFs.

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According to Vanda Research, retail investors executed the largest single-day net sell-off of individual stocks since March 2020 on July 30. While exiting specific equities, they simultaneously purchased the Roundhill Memory ETF, shifting toward diversified exposure. Viraj Patel noted the sell-off was concentrated, not broad, as traders evaluate risk-to-reward ratios before allocating capital. Day trading crypto and ETFs has now become a key strategy for managing market volatility.

BlockBeats news, on July 30, according to Vanda Research data, retail investors recorded their largest single-day net sell-off of individual stocks since the market crash triggered by the COVID-19 pandemic in March 2020. However, funds did not exit the stock market; instead, they simultaneously net-bought the Roundhill Memory ETF, indicating that investors are shifting from individual stocks to ETFs to reduce risk.


Vanda Research global macro strategist Viraj Patel said that this record net selling was concentrated in a few individual stocks rather than reflecting broad outflows from the market, indicating that retail investors are becoming more cautious and selective, rather than broadly turning bearish on the market.

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