When markets tumble, the instinct for many might be to panic and pull out. But data from the volatile first week of April tells a different story: most retail investors stayed the course.
Following a sharp market sell-off triggered by renewed tariff fears, investment firm Vanguard analyzed the behavior of its self-directed clients—those who independently manage their portfolios—between April 3 and April 9. The findings revealed a remarkable level of investor discipline.
According to Vanguard, just 8.4% of its self-directed investors made any trades during the five-day stretch of heightened volatility. Among those who did trade, most acted on only one day, and significantly, buyers outnumbered sellers nearly 5-to-1.
“The headline is, the vast majority of our self-directed investors stayed the course,” said James Martielli, head of investment and trading services at Vanguard. “The good news is, we did not see a lot of folks across our very wide investor base ‘sell out.’”
Martielli added that the behavior aligns with core investing principles: buy low, sell high, avoid impulsive decisions, and stick to a long-term plan. In short, most investors passed a key test of market discipline.
Trading Activity Spiked, But Panic Selling Didn’t
Other major investment firms observed similar trends. At Charles Schwab, trading volumes jumped on April 3—the day major indexes logged substantial losses—but most of the action came from buyers, not sellers.
“We saw more self-directed investors be proactive, rather than reactive,” said Patrick Means, vice president and branch manager at Schwab’s Dallas office.
Alex Coffey, Schwab’s senior trading and derivatives strategist, noted that during the week of April 3, Schwab clients showed a preference for buying over selling. Nvidia emerged as the most-purchased stock, followed closely by Amazon, Apple, and Tesla. Additionally, many investors opted for indexed exchange-traded funds (ETFs), which Coffey described as a “volatility-driven alternative to investing in individual stocks.”
Turbulence as Opportunity
Although volatility can be unsettling, it can also present opportunity for level-headed investors. For those comfortable navigating risk, the early April downturn offered a chance to acquire quality stocks at discounted prices.
Financial advisors generally caution against short-term trading driven by emotion. Still, for long-term investors, downturns can be strategic entry points—particularly through diversified vehicles such as index funds or ETFs.
“For investors concerned about sharp market swings, broad index funds or minimum-volatility ETFs are often a good way to maintain exposure without assuming excessive risk,” said BlackRock strategist Jeff Akullian.
Some ETFs and mutual funds are specifically designed to reduce volatility, offering more stability than the broader market. BlackRock, for example, provides educational resources on “minimum volatility” strategies that may appeal to risk-averse investors.
Bottom Line: Investors Remain Resilient
While headlines and price charts may suggest chaos, the underlying behavior of individual investors tells a more measured story. Despite sharp losses and unsettling news on trade, most investors resisted panic and stayed invested—a reassuring signal of growing financial discipline among retail market participants.
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