- New personal rate of return metric added, shows main street
investors' return for 2024 at 13.5% vs 25% for S&P 500 and 1.3%
for Bloomberg Aggregate Bond Index
- Investor Pulse highlights investors are blending
professional advice with rising DIY strategies, but advice driven
investors had double the investment assets of their self-directed
peers
- Broadridge unlocks unprecedented transparency into main
street investment behavior; makes definitive source of U.S. retail
investment behavior publicly available
NEW
YORK, March 11, 2025 /PRNewswire/ -- Global
Fintech leader Broadridge Financial Solutions,
Inc. (NYSE: BR) has released its latest Investor Pulse update
via its new interactive, publicly available tool, providing
critical insight into U.S. individual investor habits to enable
asset managers, advisors, policy professionals and investors to
deepen their understanding of the national investment landscape. A
new feature of Broadridge's Investor Pulse includes the addition of
the first-of-its-kind large scale analysis of individual investor
rates of return.
Broadridge's Investor Pulse analyzes the taxable and IRA
accounts of nearly 50 million U.S. investors and is the definitive
source of U.S. retail investment behavior. Its newly created
Investor Pulse site, updated monthly, is a dynamic tool for
financial professionals and individual investors that unlocks the
ability to access and analyze critical trends shaping the
investment marketplace.
"Broadridge is committed to helping democratize and digitize
investing and the interactive Investor Pulse site, coupled with the
introduction of personal rates of return, provides an unprecedented
level of detail and accessibility, empowering financial
professionals with the most comprehensive and actionable insights
into investment behavior," said Dan
Cwenar, Head of Broadridge Data and Analytics. "These
advancements not only help professionals and individual investors
make more informed decisions but also allow them to refine their
strategies with a deeper understanding of the evolving financial
landscape. We are excited to continue leading the way in providing
the most granular and valuable investor data available."
Demographic filtering by region, age, gender, education level,
and more empowers users to delve deeper into investor subsegments
with unprecedented precision and create custom peer groups on the
fly. This new functionality enables advisors and investors to
examine and benchmark against a highly specific cohort.
Innovative Personal Rate of Return Data Enlightens
Segmentation
The newest element of Broadridge Investor Pulse is a personal
rate of return metric that measures investors' asset-weighted total
return based off month end positions and provides an indicator of
investment gains and losses by segment. Having detailed data about
investment rates of return broken down by segments such as age,
gender, education level and region is valuable for financial
professionals as it enables them to enhance personalization,
optimize investment strategies, improve client satisfaction, and
ensure more effective decision-making. Highlights of investor rate
of return data in Q4 2024 include:
- U.S. retail investors experienced positive personal rates of
return in Q4 2024:
- There was a .7% median rate of return for all retail investors
compared to 2.4% for the S&P 500 index and -3.1% for
the Bloomberg Aggregate Bond Index.
- Returns among wealth and generational segments were primarily
driven by increased equity exposure, specifically the combination
of equity-oriented mutual funds and ETFs as well as directly
held equities or stocks.
- "Active mutual fund owners" underperformed all other
investors as less than 10% of their portfolios included
individual stocks. Active mutual fund owners are investors with 50%
or more of their asset holdings in active mutual funds.
- Educational level had no impact on rates of return. Investors
with high school, college and grad school all returned .7%.
- Male investors, driven by their higher allocation to equities,
achieved higher personal rates of return versus females at 1.0% and
.4% respectively.
2024 Investor Pulse Key Findings
Based on actual holdings of more than 48 million investors,
Broadridge's latest edition of Investor Pulse for calendar year
2024 gleaned these key observations.
The Continued Rise of DIY Investing
In 2024, asset share by DIY investors increased across each
generation. Overall, 24.1% of all assets were invested via
self-directed platforms. Though advisory channels retain the lion's
share of investors' assets, there has been a steady shift from
advice to online brokerage channels across all wealth tiers.
Perhaps not unexpectedly, younger generations such as Gen-Z
(0.8%), Millennial (9%), and Gen-X (28%) make up a higher relative
asset share of the online brokerage channel as compared to advice
channels, while Boomers and Silent Generation investors comprise a
larger relative share within advice channels.
While the popularity of DIY investing has increased markedly
nationwide, Midwest investors are notably the least reliant on a
DIY approach with 19.4% of their assets invested via online
brokerage platforms compared to 23%-26% for other regions.
Male & Female Investors Diverge in Advice, Product
Channels and Personal Rates of Return
While men make up a higher proportion of assets in both advice
channels and the online brokerage channel, it is within the latter
that the disparity is greatest. Men have 54% asset share among
advice channels and an even higher 61% share among DIY-ers with
little shifts since 2019.
For mutual funds, ETFs and equities/stocks, men hold a greater
share of the assets, with the largest spread for equities/stocks at
nearly 15 percentage points more than women investors.
Study Methodology
To create this study, Broadridge analyzed de-identified share
ownership data derived from Broadridge's proprietary business
processes consisting of tens of millions of retail investor
households' taxable and IRA accounts and billions of data points to
achieve a unique level of insight into holdings invested through
financial intermediaries (broker-dealers, online, RIAs,
wirehouses). Broadridge analyzed exchange-traded funds (ETFs),
closed-end funds, open-end mutual funds and U.S. equities held in
taxable accounts and IRAs for the years ending, 2019, 2020, 2021,
2022, 2023 and 2024.
About Broadridge
Broadridge Financial Solutions (NYSE: BR) is a global technology
leader with the trusted expertise and transformative technology to
help clients and the financial services industry operate, innovate,
and grow. We power investing, governance, and communications for
our clients – driving operational resiliency, elevating business
performance, and transforming investor experiences.
Our technology and operations platforms process and generate
over 7 billion communications per year and underpin the daily
trading of more than $10 trillion of
securities globally. A certified Great Place to Work®,
Broadridge is part of the S&P 500® Index,
employing over 14,000 associates in 21 countries.
For more information about us, please
visit www.broadridge.com.
Media contact:
Caroline
Wolf
Prosek Partners
cwolf@prosek.com
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SOURCE Broadridge Financial Solutions, Inc.