Investment ProductsGrowth in Awareness, Online Trading, Use of Robos and How Managed Solutions Help Investors Cope With Volatility
Investment Products
Growth in Awareness, Online Trading, Use of Robos and How Managed Solutions Help Investors Cope With Volatility
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Report Overview
Ownership of managed investment solutions including mutual funds, ETFs and robos grew in the past year. Does this mean investors are now seeking more professional investment management vs. relying on doing it themselves - especially given the current state of the market? Possibly, but individual stocks are now the most widely owned investment type, and trading activity spiked in the past year. This report explores both of these trends in detail, including which segments are driving each, and where the opportunities lie for asset managers, distributors and brokerage firms. Additionally, given the current market volatility, we have included a special section on how managed solutions help investors cope with handling market volatility.
Key Findings
- Consumer awareness of the investment products they own is on the upswing, especially for mass market households.
- Individual stocks are now the most widely owned investment product, but ownership of managed solutions grew, with a big increase in consumer interest in the managers behind the funds.
- Online brokerage (OLB) penetration jumped to nearly half (47%) of U.S. households. Trading activity spiked.
- Women report lower OLB ownership and trading activity than men, but younger women and married/partnered women are getting more engaged in stock trading.
- Use of robos/automated portfolios doubled year over year to at least 13M households, and possibly as many as 18M.
- Owning mutual funds appears to help consumers ”handle market volatility emotionally,” but robos do not.
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Sample Report Pages
Table of Contents
Methodology 1-3
Key Findings & Implications 4
Favorite Statistics 5
Related Research 6
Key Findings 7-57
1: Consumer awareness of the investment products they own is on the upswing, especially for mass market households. 7-14
1.1: Exhibit 1.1 – Awareness of Investment Products Owned and Asset Allocation: National, by Year
7
1.2: Exhibit 1.2 – Awareness of Investment Products Owned and Asset Allocation: by Assets, by Year
8
1.3: Exhibit 1.3 – Awareness Investment Products Owned: by 12 Asset Ranges, by Year
9
1.4: Exhibit 1.4 – Awareness of Investment Products Owned: by 12 Asset Ranges, by Advice Status, by Year
10
1.5: Exhibit 1.5 – Asset Allocation to Equity in Ranges: by Year
11
1.6: Exhibit 1.6 – Average Asset Allocation: by Investable Assets, 2021
12
1.7: Exhibit 1.7 – Asset Allocation to Equity in Ranges: by Breadwinner Age Ranges, 2021
13
1.8: Exhibit 1.8 – Asset Allocation to Equity in Ranges, by Use of Fractional Shares: National, 2021
14
2: Individual stocks are now the most widely owned investment product, but ownership of managed solutions grew, with a big increase in consumer interest in the managers behind the funds. 15-23
2.1: Exhibit 2.1 – Investment Products Owned, All Product Types: by Year
15
2.2: Exhibit 2.2 – Ownership of Individual Stocks vs. Mutual Funds: by Investable Assets, 2021 vs. 2010
16
2.3: Exhibit 2.3 – Ownership of Individual Stocks and Mutual Funds: by Breadwinner Age, by Year
17
2.4: Exhibit 2.4 – Ownership of ETFs, Robos/Automated Portfolios and Separately Managed Accounts: by Breadwinner Age, by Year
18
2.5: Exhibit 2.5 – Ownership of Fixed and Variable Annuities: by Breadwinner Age, by Year
19
2.6: Exhibit 2.6 – Trends in Ownership of Managed Products NET
20
2.7: Exhibit 2.7 –Attitude “It is important to me which investment companies manage my mutual funds regardless of whether I or a financial professional has chosen the funds,” Top 3 Box (8-10) Levels of Agreement on 10-Point Scale: by National, by Respondent Age Ranges, 2021 vs. 2020
21
2.8: Exhibit 2.8 –Attitude “It is important to me which investment companies manage my mutual funds regardless of whether I or a financial professional has chosen the funds,” Top 3 Box (8-10) Levels of Agreement on 10-Point Scale: by 12 Asset Ranges, 2021 vs. 2020
22
2.9: Exhibit 2.9 – Attitude “It is important to me which investment companies manage my mutual funds regardless of whether I or a financial professional has chosen the funds,” Top 3 Box (8-10) Levels of Agreement on 10-Point Scale: by Advice Status, by Investable Assets, by Year
23
3: Online brokerage (OLB) penetration jumped to nearly half (47%) of U.S. households. Trading activity spiked. 24-30
3.1: Exhibit 3.1 – Online Brokerage Account Ownership and Trading Activity: National, by Year
24
3.2: Exhibit 3.2 – Online Brokerage Account Ownership: by Investable Assets, by Selected Years
25
3.3: Exhibit 3.3 – Online Brokerage Trading Frequency: National, by Year
26
3.4: Exhibit 3.4 – Online Brokerage Account Ownership and Trading Frequency: by Investable Assets, 2021
27
3.5: Exhibit 3.5 – Crosstab of Fractional Shares, Awareness & Use/Interest by Online Brokerage Account Ownership and Trading Frequency: 2021
28
3.6: Exhibit 3.6 – Make 1+ Online Brokerage Trades on Their Own: $500K+, by Reliance on Paid Investment Professional, by Year
29
3.7: Exhibit 3.7 – Make 1+ Online Brokerage Trades on Their Own, by Store: 2021
30
4: Women report lower OLB ownership and trading activity than men, but younger women and married/partnered women are getting more engaged in stock trading. 31-35
4.1: Exhibit 4.1 – Online Brokerage Account Ownership and Trade 6+ Times per Year: by Respondent Gender*, by Relationship Status*, 2021
31
4.2: Exhibit 4.2 – Trade 6+ Times Per Year by Women: National, by Relationship Status, 2021
32
4.3: Exhibit 4.3 – Trade 6+ Times Per Year by Women: National, by Relationship Status, by Investable Assets, 2021
33
4.4: Exhibit 4.4 – Trade 6+ Times Per Year: by Generation, by Respondent Gender, by Year
34
4.5: Exhibit 4.5 – Online Brokerage Account Ownership and Trade 6+ Times per Year by Women: National, by Select Generation, by Relationship Status, by Year
35
5: Use of robos/automated portfolios doubled year over year to at least 13M households, and possibly as many as 18M. 36-48
5.1: Exhibit 5.1 — Number of Households With Robos/Automated Portfolios: National, by Year
36
5.2: Exhibit 5.2 – Robos/Automated Portfolios Ownership Rates Among Households who Know Their Products Owned: by Investable Assets, by Year
37
5.3: Exhibit 5.3 – Robos/Automated Portfolios Ownership Rates: by Investable Assets, by Year
38
5.4: Exhibit 5.4 – Average Asset Allocation: by Robo Ownership and Investable Assets, 2021
39
5.5: Exhibit 5.5 – Asset Allocation to Equity in Ranges: by Robo Ownership and Investable Assets, 2021
40
5.6: Exhibit 5.6 – Average Allocation to Robos, Among Robo Owners: by Investable Assets, by Year
41
5.7: Exhibit 5.7 – Dollars Invested in Robos/Automated Portfolios: by Year
42
5.8: Exhibit 5.8 – Dollars Invested in Robos/Automated Portfolios: by Investable Assets, by Year
43
5.9: Exhibit 5.9 – Robos/Automated Portfolios Ownership Rates: by Generation, by Lifestage, by Year
44
5.10: Exhibit 5.10 – Robos/Automated Portfolios Ownership Rates: by Generation and Investable Assets, by Year
45
5.11: Exhibit 5.11 – Robos/Automated Portfolios Ownership Rates: by Generation, by Year
46
5.12: Exhibit 5.12 – Pre-Retiree Segment & Pre-Retirees with Robos/Automated Portfolios, by Generation with Xennials, 2021
47
5.13: Exhibit 5.13 – Customer Use of Robos/Automated Portfolios: by Store, by Year
48
6: Owning mutual funds appears to help consumers ”handle market volatility emotionally,” but robos do not. 49-57
6.1: Exhibit 6.1 – Difficulty With Financial Task “Handling Market Volatility Emotionally,” By Year
49
6.2: Exhibit 6.2 – Crosstab of Asset Class Allocation, Equity, by Difficulty With Financial Task “Handling Market Volatility Emotionally,” 2021
50
6.3: Exhibit 6.3 – Crosstab of Online Brokerage Ownership & Trading Frequency by Difficulty With Financial Task “Handling Market Volatility Emotionally,” 2021
51
6.4: Exhibit 6.4 – Difficulty With Financial Task “Handling Market Volatility Emotionally” by Professionally Advised vs. Unadvised*, by Investable Assets, 2021
52
6.5: Exhibit 6.5 – Crosstab of Frequency of Consultation, Any Paid Investment Professional, by Difficulty With Financial Task “Handling Market Volatility Emotionally,” 2019
53
6.6: Exhibit 6.6 – Crosstab of Investment Products Owned, Allocation to Mutual Funds, by Difficulty With Financial Task “Handling Market Volatility Emotionally,” 2021
54
6.7: Exhibit 6.7 – Crosstab of Investment Products Owned, Allocation to Mutual Funds, by Difficulty With Financial Task “Handling Market Volatility Emotionally,” $100K-$1M, 2021
55
6.8: Exhibit 6.8 – Crosstab of Investment Products Owned, Allocation to Mutual Funds, by Difficulty With Financial Task “Handling Market Volatility Emotionally,” $100K-$1M, Inexperienced Investors, 2021
56
6.9: Exhibit 6.9 – Crosstab of Investment Products Owned, Allocation to ETFs and Robos, by Difficulty With Financial Task “Handling Market Volatility Emotionally,” 2021
57
Data Dictionary 58-62
Appendix 63
Glossary 64
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