The "GameStop Generation" has grown up. Five years after the meme stock frenzy that shook Wall Street, a quiet revolution is happening in the portfolios of Gen Z. The cohort that once bet their stimulus checks on AMC and Dogecoin is now embracing the most boring investment strategy of all: the Index Fund.

A new report by the CFA Institute shows a dramatic shift in behavior. In 2021, 51% of Gen Z investors admitted to buying stocks based on "FOMO" (Fear Of Missing Out). In 2025, that number dropped to 28%. Instead, they are pouring money into low-cost ETFs tracking the S&P 500.

The "Boglehead" Pivot

Mamadou-Hady Sow, 23, is typical of this shift. "I made $2,000 on GameStop, then lost $4,000 on crypto," he told The New York Times. "I realized I wasn't investing; I was gambling." Today, Sow maxes out his Roth IRA and buys Vanguard funds. He credits "FinTok" (Financial TikTok) creators who have pivoted from hyping moonshots to explaining compound interest.

• The Finfluencer Effect: Influencers like Humphrey Yang and "Your Rich BFF" are driving this literacy. They preach "boring wealth"—consistent contributions, diversification, and patience. The "Get Rich Quick" narrative has been replaced by "Get Rich Slowly."
• The Tech Factor: Apps like Robinhood, once blamed for gamifying trading, now offer retirement accounts with matching contributions. They have adapted to their users' desire for stability over volatility.
• Economic Anxiety: Having entered the workforce during high inflation and layoffs, Gen Z is risk-averse with their long-term savings. They treat the stock market not as a casino, but as a survival tool for a future without pensions.

Wall Street Takes Note

Asset managers are scrambling to cater to this "enlightened" demographic. They are launching fractional share ETFs and ESG-focused index funds. Gen Z might have started as rebels crashing the gates, but they are ending up as the market's most disciplined stalwarts.