E*TRADE Advisor Services Study Reveals Market Outlook for RIAs and Their Clients
April 05 2019 - 8:05AM
Business Wire
Advisors also reveal biggest client mistakes in
the current market
E*TRADE Advisor Services, a provider of integrated technology,
custody, and practice management support for registered investment
advisors (RIAs), today announced results from the most recent wave
of its Independent Advisor Sentiment survey:
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the full release here:
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(Graphic: Business Wire)
- Advisors are bullish on the
market. Nearly three quarters of advisors (72%) are bullish on
the market over the next quarter.
- But volatility is a major client
concern. Nearly half of advisors (47%) said their clients are
contacting them to express concern about market volatility.
- Clients are eyeing alternatives, but
aren’t turning to crypto. Amid global slowdown concerns,
investors may be looking beyond traditional investments. Real
estate (30%) and cannabis securities (18%) are top ranked according
to advisors, while only 3% said their clients are interested in
cryptocurrencies.
- RIAs see opportunity in beaten-down
sectors. More than half of advisors (51%) said the information
technology sector could offer buying opportunities this quarter,
followed by financials (34%) and health care (34%).
- Investors continue to want to act on
their emotions. Advisors noted the biggest mistake clients make
is trying to time the markets (43%) followed by not saving enough
for retirement (27%).
“Advisors play an important role in helping their clients avoid
the noise and keep their financial goals in focus,” said Matt
Wilson, SVP of Institutional Services at E*TRADE Financial
Corporation. “It’s critical for advisors to build a strong
relationship with their clients so they can help them understand
where opportunities lie, when may be the right time to make a move,
and, more importantly, when to stay put.”
The results also revealed advisors have yet to truly focus on
specialty client segments. Almost half of RIAs surveyed said
they specialize in Baby Boomer investors (44%), while over a
quarter indicated they do not specialize in any particular client
segment.
About the Survey
This survey was conducted in-house from March 19 to March 26,
2019, among a convenience sample of 302 independent RIAs.
About E*TRADE Financial and Important Notices
E*TRADE Financial and its subsidiaries provide financial
services including brokerage and banking products and services to
retail customers. Securities products and services are offered by
E*TRADE Securities LLC (Member FINRA/SIPC). Commodity futures and
options on futures products and services are offered by E*TRADE
Futures LLC (Member NFA). Managed Account Solutions are offered
through E*TRADE Capital Management, LLC, a Registered Investment
Adviser. Bank products and services are offered by E*TRADE
Bank, and RIA custody solutions are offered by E*TRADE Savings
Bank doing business as “E*TRADE Advisor Services,” both of which
are national federal savings banks (Members FDIC). More information
is available at www.etrade.com.
E*TRADE Financial, E*TRADE, and the E*TRADE logo are trademarks
or registered trademarks of E*TRADE Financial Corporation.
ETFC-G
© 2019 E*TRADE Financial Corporation. All rights reserved.
Referenced Tables
When it comes to the market in the next three months, are
you? Bullish 72% Bearish 28%
When it comes to the market, what are your clients
contacting you most about? Market volatility 47% Fears
of a recession 26% China and US trade tensions 11%
Gridlock in Washington 5% Federal reserve monetary policy
1% Flattening yield curve 1% Brexit 0%
Economic weakness in Europe 0% None of these 5% Other
4%
In general, please rate your clients’
current interest in each of the following…
Bottom
Not at all Only a little
Somewhat Very Extremely
Top
two box
interested interested
interested interested interested
two box Real estate
25%
4% 21%
45%
26% 4%
30% Marijuana
securities
57% 25%
32%
25% 14% 4%
18% Renewable resources
59% 20% 39%
27% 13% 1%
14% Emerging markets
46%
12% 34%
40% 11%
3%
14% ESG investments
63% 29% 34%
26% 8% 3%
11% Cryptocurrencies
84%
50% 34%
13% 3%
0%
3% What
industries do you think offer the most potential for your clients
this quarter? Top three Information technology 51%
Financials 34% Health care 34% Energy 26%
Consumer staples 23% Industrials 12% Consumer
discretionary 11% Other 9% Communication services
8% Utilities 8% Materials 5%
What is the biggest mistake you see your clients
making? Trying to time the market 43% Not saving enough
for retirement 27% Prioritizing their dependent's financial
needs over their own 11% Acting on stock tips that don't
align with long-term goals 8% Asking for early withdrawals
from retirement accounts 5% Other 4% None 2%
Thinking of your individual book of
business, do you specialize in any of the following client
segments?
Select all that apply
Baby Boomer investors 44% Widows/Divorced/Single 20%
Women 16% Medical professionals 14% HENRYs (High
Earners, Not Rich Yet) 13% Gen X investors 10%
Millennials 7% LGBTQ community 4% Special needs
families 1% None 26% Other 8%
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version on businesswire.com: https://www.businesswire.com/news/home/20190405005178/en/
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