Investment Products & Asset Managers:
Rise of Crypto and Online Trading, Sizing the ESG Market and the Need to Refocus on Basics
Order Report - Investment Products & Asset Managers: : Rise of Crypto and Online Trading, Sizing the ESG Market and the Need to Refocus on Basics
Report Overview
New brokerage accounts are on the rise, more investors are trading stocks and cryptocurrencies, and environmental, social & governance (ESG) as an investment goal is growing in popularity among some very specific market segments. But, mutual fund and packaged product ownership across all wealth groups is on the decline, consumers struggle to identify their investment goals, and many are moving away from relying on financial professionals. This is especially concerning for lower asset Americans, who are at risk of missing out on creating wealth through safer, professionally managed products. This report looks at trends in online brokerage accounts and trading, the use of cryptocurrencies, investor goals & product ownership, and why getting back to basics may be good for everyone.
Key Findings
- Consumers are embracing trading in both online brokerage accounts and cryptocurrency
- Awareness of asset allocation is high among wealthier consumers, but low and declining among households with <$100K. Many lower-asset and younger households are not accessing equity markets
- Consumer awareness of the investment products they own is low and falling, especially for younger, low-asset households. Fewer households report they own mutual funds than at any point in the past decade
- The biggest fund families may reach significant portions of households who own mutual funds or ETFs, but definite reach into all U.S. households is in the single digits due to declining ownership of mutual funds and low awareness of asset managers
- The #1 national investment goal is long-term growth, but identification of investment goals is hard for many and tied to understanding of financial language
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Sample Report Pages
Methodology
1-5
Key Findings & Implications
6
Favorite Statistics
7
Related Research
8
Key Findings
9-73
1: Consumers are embracing trading in both online brokerage accounts and cryptocurrency.
9-28
1.1: Exhibit 1.1 – Online Brokerage Account Ownership and Trading Frequency: by Year
9
1.2: Exhibit 1.2 – Online Brokerage Account Ownership: by Investable Assets, by Year
10
1.3: Exhibit 1.3 – Online Brokerage Account Ownership and Trading Frequency: by Investable Assets, by Year
11
1.4: Exhibit 1.4 – Online Brokerage Account Ownership and Trading Frequency: by Investable Assets, 2020
12
1.5: Exhibit 1.5 – Online Brokerage Account Ownership and Trading Frequency: $500K+, by Reliance on Paid Investment Professional, 2020
13
1.6: Exhibit 1.6 – Make 1+ Online Brokerage Trades On Their Own: $500K+, by Reliance on Paid Investment Professional, by Year
14
1.7: Exhibit 1.7 – Online Brokerage Trading Frequency, by Store: 2020
15
1.8: Exhibit 1.8 – Online Brokerage Account Ownership and Trading Frequency: by Risk Tolerance: 2020
16
1.9: Exhibit 1.9 – Investment Risk Tolerance by Attitudes to Resuming Consumer Behaviors during COVID-19: 2020
17
1.10: Exhibit 1.10 – Online Brokerage Account Ownership and Trading Frequency: by Gender, by Year
18
1.11: Exhibit 1.11 – Make 6+ Online Brokerage Trades on Their Own: by Gender, by Generation, by Year
19
1.12: Exhibit 1.12 – Engagement With Cryptocurrency: 2020
20
1.13: Exhibit 1.13 – Crypto: Reasons for Trading or Using, by Investable Assets, 2020
21
1.14: Exhibit 1.14 – Crosstab of Use of Mobile Payment Services by Trade or Use of Crypto Currency: 2020
22
1.15: Exhibit 1.15 – Engagement with Cryptocurrency NET: by Select Segments, 2020
23
1.16: Exhibit 1.16 – Crypto: Reasons for Trading or Using, by Gender and by Generation, 2020
24
1.17: Exhibit 1.17 – Crosstab of Crypto Use by Risk Tolerance/Comfort with Volatility: 2020
25
1.18: Exhibit 1.18 – Crypto Use and Political Views: 2020
26
1.19: Exhibit 1.19 – Count of Best Definition Chosen for Financial Fluency Terms: Crypto Users vs. Non-Crypto Users, 2020
27
1.20: Exhibit 1.20 – Crypto User Market: Sizing & Demographics, 2020
28
2: Awareness of asset allocation is high among wealthier consumers, but low and declining among households with <$100K. Many lower-asset and younger households are not accessing equity markets.
29-34
2.1: Exhibit 2.1 – Household Awareness of Asset Allocation: by Year
29
2.2: Exhibit 2.2 – Household Awareness of Asset Allocation: by Investable Assets, by Year
30
2.3: Exhibit 2.3 – Average Asset Allocation: by Investable Assets, 2020
31
2.4: Exhibit 2.4 – Asset Allocation to Equity in Ranges: by Year
32
2.5: Exhibit 2.5 – Asset Allocation to Equity in Ranges: by Investable Assets, by Year
33
2.6: Exhibit 2.6 – Asset Allocation to Equity in Ranges: by Investable Assets, by Age, 2020
34
3: Consumer awareness of the investment products they own is low and falling, especially for younger, low-asset households. Fewer households report they own mutual funds than at any point in the past decade.
35-47
3.1: Exhibit 3.1 – Household Awareness of Asset Class Allocation and Investment Product Types Owned: by Year
35
3.2: Exhibit 3.2 – Household Awareness of Investment Product Types Owned: by Investable Assets, by Year
36
3.3: Exhibit 3.3 – Investment Product Ownership: by Year
37
3.4: Exhibit 3.4 – Average Allocation to Investment Products: by Investable Assets: 2020
38
3.5: Exhibit 3.5 – Average Allocation to Managed Investment Products: by Investable Assets: 2020
39
3.6: Exhibit 3.6 – Average Allocation to Managed Investment Products: by Investable Assets: 2016
40
3.7: Exhibit 3.7 – Ownership of Individual Stocks vs. Mutual Funds: by Investable Assets, 2020 vs. 2010
41
3.8: Exhibit 3.8 – Ownership of Mutual Funds and ETFs: by Year
42
3.9: Exhibit 3.9 – Ownership of Mutual Funds: by Generation, by Year
43
3.10: Exhibit 3.10 – Ownership of Mutual Funds: by Investable Assets, by Year
44
3.11: Exhibit 3.11 – Ownership of Mutual Funds, Households With <$100K: by Generation, by Year
45
3.12: Exhibit 3.12 – Crosstab of Risk Tolerance/Comfort With Volatility by Ownership of Mutual Funds: 2020 vs. 2010
46
3.13: Exhibit 3.13 – Crosstab of Allocation to Mutual Funds by Agreement With Attitude “I am confused by all the investment information out there”: 2020
47
4: The biggest fund families may reach significant portions of households who own mutual funds or ETFs, but definite reach into all U.S. households is in the single digits due to declining ownership of mutual funds and low awareness of asset managers.
48-60
4.1: Exhibit 4.1 – Reported Ownership of Fund Families among Households who Own Mutual Funds/ETFs: 2020
48
4.2: Exhibit 4.2 – Total Possible Reach* Into Mutual Fund/ETF Consumers: by Asset Manager, by Year
49
4.3: Exhibit 4.3 – Definite Reach into Mutual Fund/ETF Consumers: by Asset Manager, by Year
50
4.4: Exhibit 4.4 – Total Possible and Definite Reach Into All Households With Assets: by Asset Manager, by Year
51
4.5: Exhibit 4.5 – Crosstabs of Ownership Rates of Vanguard Fund Family vs. Fidelity Fund Family: 2020
52
4.6: Exhibit 4.6 – Hearts & Wallets Shareholder Certainty Score*: by Asset Manager, 2020
53
4.7: Exhibit 4.7 – Consumer-Reported Distribution Mix: by Asset Manager, 2020
54
4.8: Exhibit 4.8 – Consumer-Reported Distribution Mix: “Directly with the Fund Company”: by Asset Manager, by Year
55
4.9: Exhibit 4.9 – Scatterplot Analysis: Total Definite Reach Into all Households With Assets vs. Shareholder Certainty Score, 2020
56
4.10: Exhibit 4.10 – Scatterplot Analysis: Shareholder Certainty Score vs. Direct Distribution, 2020
57
4.11: Exhibit 4.11 – Hearts & Wallets Shareholder Certainty Score*: by Asset Manager, by Year
58
4.12: Exhibit 4.12 – U.S. Household Involvement With Mutual Funds: by Investable Assets, 2020
59
4.13: Exhibit 4.13 – Agreement with Attitude: “I'd prefer one product that combines different investments to accomplish a goal, over me or an advisor assembling a portfolio of many component investments,” 2020
60
5: The #1 national investment goal is long-term growth, but identification of investment goals is hard for many and tied to understanding of financial language.
61-73
5.1: Exhibit 5.1 – Household Awareness of Asset Class Allocation, Investment Product Types Owned and Investment Goals: by Year
61
5.2: Exhibit 5.2 – Household Awareness of Investment Goals: by Select Segments, 2020
62
5.3: Exhibit 5.3 – Crosstab of Reliance on Paid Investment Professionals by Awareness of Investment Goals: 2020
63
5.4: Exhibit 5.4 – Crosstab of Count of Best Definition Chosen for Financial Fluency Terms by Awareness of Investment Goals: 2020
64
5.5: Exhibit 5.5 – Investment Goals, % Who Have the Goal (1+ Points of Importance): 2020
65
5.6: Exhibit 5.6 – Investment Goals, Importance: Average Allocation of 100 Points by Lifestage, 2020
66
5.7: Exhibit 5.7 – Investment Goals, Importance, Points Distribution: 2020
67
5.8: Exhibit 5.8 – Investment Goals, % Who Have the Goal (1+ Points of Importance): by Investable Assets, 2020
68
5.9: Exhibit 5.9 – Investment Goals, % Who Have* the ESG Investment Goal “Investing for a positive, social and/or environmental impact,” by Assets: 2020
69
5.10: Exhibit 5.10 – ESG Investment Goal “Investing for a positive, social and/or environmental impact,” Importance, Points Distribution: by Gender, by Age, 2020
70
5.11: Exhibit 5.11 – High-Interest ESG Market (Allocate 20+ Points to ESG): Sizing & Demographics, 2020
71
5.12: Exhibit 5.12 – Customer Base With High Interest in ESG, by Store: 2020
72
5.13: Exhibit 5.13 – Overlap of High-Interest ESG Market (Allocate 20+ Points to ESG) and Crypto Users, 2020
73
Data Dictionary
74-78
Appendix
79-80
Glossary
81
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