Forget the old image of the typical investor in a suit—today's investing landscape is a mosaic of increasingly diverse ages, backgrounds, and strategies, as revealed by the latest data.
Key Takeaways
- In 2023, 59% of U.S. individual investors were men, while 41% were women
- As of 2022, the average age of retail investors in the U.S. was 51 years old
- 28% of U.S. millennials (born 1981-1996) owned stocks in 2023, compared to 52% of baby boomers
- 45% of U.S. investors checked portfolios daily in 2023
- In 2022, 67% of retail investors traded via mobile apps
- 52% of investors rebalanced portfolios annually, per 2023 survey
- 39% equities, 25% bonds, 20% cash, 16% alternatives in average U.S. portfolio 2023
- Tech stocks comprised 28% of retail portfolios in 2022
- 15% of global portfolios allocated to ESG funds in 2023
- Average U.S. investor annual return was 7.2% over past 10 years to 2023
- S&P 500 beat 88% of active funds over 15 years ending 2023
- Robo-advised portfolios averaged 6.8% annualized returns 2018-2023
- 72% of investors moderately risk-tolerant in 2023
- 41% feared market crash most among risks in 2023 survey
- 67% optimistic about stocks over next 5 years per 2024 poll
Investor demographics are diversifying while portfolios grow more tech-focused and risk-tolerant.
Attitudes and Sentiments
- 72% of investors moderately risk-tolerant in 2023
- 41% feared market crash most among risks in 2023 survey
- 67% optimistic about stocks over next 5 years per 2024 poll
- 55% prioritized growth over preservation in bull market 2023
- Inflation concerns drove 49% to alternatives in 2022
- 62% trusted AI for future investing advice in 2023
- 38% regretted not investing sooner post-2020 rally
- 71% viewed diversification as key to success in 2023
- Bear market fear index averaged 45 in 2022 volatility
- 53% of women more conservative than men in risk appetite 2023
- 66% believed in long-term market upward trend eternally
- 29% chased meme stocks despite risks in 2023
- Retirement confidence at 68% among investors in 2023
- 47% wary of geopolitical risks impacting portfolios 2024
- 59% favored active over passive in uncertain times 2022
- Greed index peaked at 85 during 2021 bull run
- 64% saw crypto as speculative not investment in 2023
- 52% planned to increase equity exposure post-dip 2023
- Patience score among investors rose to 7.2/10 in 2023
- 73% endorsed sustainable investing ethically in 2023
- FOMO affected 34% during rallies per 2022 study
- 61% confident in beating market with research 2023
- Loss aversion rated 2.1x gain seeking in 2023 psych study
- 48% shifted to defensive stocks in high VIX periods 2022
- 69% valued advisor relationships for calm in volatility
- Bullish sentiment hit 62% end-2023
Attitudes and Sentiments Interpretation
Here is a one-sentence interpretation blending wit with seriousness:
While investors project a confident front with most believing in long-term growth and their own research, their behavior reveals a nervous heartbeat, as fear of crashes, regret over timing, and the allure of speculative trends constantly tug against their professed optimism and trust in diversification.
Investment Habits
- 45% of U.S. investors checked portfolios daily in 2023
- In 2022, 67% of retail investors traded via mobile apps
- 52% of investors rebalanced portfolios annually, per 2023 survey
- 38% of U.S. investors used dollar-cost averaging strategy in 2023
- Average holding period for stocks among retail investors was 8 months in 2022
- 61% of investors set stop-loss orders on trades in 2023
- 29% of millennials day-traded at least once in 2023
- 74% of investors reviewed performance quarterly in 2022
- 41% used social media for investment ideas in 2023
- Average number of trades per month for active U.S. investors was 5.2 in 2022
- 56% of investors automated contributions to retirement accounts in 2023
- 33% of retail investors followed technical analysis primarily in 2023
- Women investors diversified across 12 asset classes on average in 2022
- 48% of Gen Z investors paper-traded before real investing in 2023
- 65% of investors tracked ESG factors in decisions in 2023
- Average time spent researching investments weekly was 4.1 hours in 2022
- 27% of investors used AI tools for analysis in 2023
- 59% preferred long-term buy-and-hold over short-term trading in 2023
- 42% of U.S. investors contributed to 401(k)s monthly in 2022
- 51% journaled their trades for learning in 2023
- 36% attended webinars or courses yearly in 2022
- 63% set annual investment goals in writing in 2023
- 19% rotated sectors quarterly based on performance in 2022
- 70% checked news daily before trading in 2023
- 44% used limit orders exclusively in 2022
- 55% of investors had emergency funds covering 6+ months before investing in 2023
Investment Habits Interpretation
Despite the market's dizzying volatility, the modern American investor is a fascinating paradox: constantly checking their phone yet planning for decades, chasing daily trends while automating retirement savings, and somehow finding time to day-trade between webinars, all while their prudent emergency fund sits patiently in the background.
Investor Demographics
- In 2023, 59% of U.S. individual investors were men, while 41% were women
- As of 2022, the average age of retail investors in the U.S. was 51 years old
- 28% of U.S. millennials (born 1981-1996) owned stocks in 2023, compared to 52% of baby boomers
- In 2024, 15% of U.S. investors identified as Hispanic or Latino, up from 9% in 2019
- High-net-worth individuals (over $1M investable assets) numbered 7.4 million in the U.S. in 2023
- 62% of U.S. investors in 2023 had a college degree or higher
- Women investors in the UK held 11% of total investment assets in 2022
- 34% of Gen Z (born 1997-2012) in the U.S. started investing before age 21 in 2023
- In 2023, 22% of U.S. Black households owned stocks, versus 66% of white households
- The median income of U.S. stock-owning households was $102,310 in 2022
- 47% of U.S. investors aged 30-49 used robo-advisors in 2023
- In Europe, 19% of women participated in stock markets in 2022, vs. 28% of men
- U.S. investor households with children under 18 averaged 2.3 kids in 2023
- 41% of U.S. investors lived in urban areas in 2022
- Asian American investors in the U.S. had the highest stock ownership rate at 74% in 2023
- 55% of U.S. investors were married in 2023
- In 2023, 12% of global investors were under 30 years old
- U.S. female investors' average portfolio size was $145,000 in 2022
- 29% of U.S. investors were self-employed in 2023
- Rural U.S. investors comprised 18% of total in 2022
- 63% of U.S. investors had postgraduate education in 2023
- In 2023, 24% of Canadian investors were immigrants
- U.S. investor median age rose from 47 to 51 between 2018-2022
- 37% of U.S. investors aged 50+ planned to retire by 2030
- LGBTQ+ investors made up 7% of U.S. retail investors in 2023
- 52% of U.S. investors owned homes in 2022
- Global investor gender gap narrowed to 15% in participation rates by 2023
- 31% of U.S. investors were veterans in 2023
- Average U.S. investor household size was 2.6 people in 2022
- 68% of U.S. investors were employed full-time in 2023
Investor Demographics Interpretation
The typical investor is still a middle-aged, educated, married man, but the future belongs to a more diverse, tech-savvy, and impatient crowd who are slowly but surely rewriting the rules of who gets to build wealth.
Portfolio Composition
- 39% equities, 25% bonds, 20% cash, 16% alternatives in average U.S. portfolio 2023
- Tech stocks comprised 28% of retail portfolios in 2022
- 15% of global portfolios allocated to ESG funds in 2023
- Bonds made up 22% of millennial portfolios vs. 35% for boomers in 2023
- Cryptocurrencies averaged 4.2% of U.S. investor portfolios in 2022
- Real estate investment trusts (REITs) at 7% in average HNW portfolios 2023
- 32% of portfolios held international stocks in 2023
- Gold and precious metals averaged 3.8% allocation in 2022
- ETFs constituted 48% of equity holdings for retail investors in 2023
- Dividend stocks were 18% of income-focused portfolios in 2022
- Emerging markets exposure averaged 5.1% in 2023
- Fixed income duration averaged 6.2 years in bond portfolios 2022
- Value stocks vs. growth: 42%/58% split in U.S. portfolios 2023
- Commodities allocation rose to 6% from 3% in 2020-2023
- Small-cap stocks 12% of equity portfolios in 2022
- Corporate bonds 14%, treasuries 8% in fixed income slice 2023
- Private equity averaged 9% for UHNW investors in 2023
- Sector breakdown: healthcare 13%, financials 11% in 2022 portfolios
- Cash equivalents 18% amid volatility in 2023
- Hedge funds 4.5% in institutional-like retail portfolios 2022
- Preferred stocks 2.3% for income seekers in 2023
- MLPs and energy infrastructure 3% in diversified portfolios 2022
- Options and derivatives 1.8% exposure average 2023
- Sustainable bonds 11% of fixed income in ESG portfolios 2023
- Mega-cap tech 22% dominant in growth portfolios 2022
- Municipal bonds 5% for tax-advantaged investors 2023
- Venture capital 2.1% for accredited investors in 2022
Portfolio Composition Interpretation
The modern investor, a creature of cautious diversification and bold thematic bets, keeps one foot in the conservative waters of bonds and cash while the other eagerly tests the speculative waves of tech stocks and crypto, all while trying to remember that the future supposedly lies in sustainable funds and emerging markets.
Returns and Performance
- Average U.S. investor annual return was 7.2% over past 10 years to 2023
- S&P 500 beat 88% of active funds over 15 years ending 2023
- Robo-advised portfolios averaged 6.8% annualized returns 2018-2023
- Value investors outperformed growth by 4.1% in 2022 downturn
- Dividend aristocrats returned 9.3% annually over 20 years to 2023
- ESG funds underperformed benchmarks by 1.2% on average in 2022
- Retail investors lagged market by 4.5% annually per 2023 DALBAR
- 60/40 portfolio returned 5.9% annualized 2013-2023
- Crypto portfolios averaged -15% in 2022 bear market
- Target-date funds hit 7.1% average return over 10 years to 2023
- Small-cap value stocks returned 11.2% annually long-term to 2023
- Bond ladders yielded 4.3% in rising rate environment 2022-2023
- Momentum strategies added 2.8% alpha over benchmarks 2018-2023
- 401(k) balances grew 12% on average in 2023
- International stocks returned 4.7% vs. 10.2% U.S. over decade to 2023
- Low-volatility equity strategies beat market by 1.5% in 2022
- REITs returned 8.4% annualized over 25 years to 2023
- Factor timing models improved returns by 3.2% since 2010
- Tax-loss harvesting boosted after-tax returns by 1.1% annually 2023
- Equal-weight S&P 500 outperformed cap-weight by 0.9% yearly to 2023
- MLPs returned 10.1% amid energy boom 2022-2023
- Balanced funds averaged 6.2% returns over 10 years to 2023
- High-yield bonds yielded 7.8% total return in 2023 recovery
- Smart beta ETFs added 1.4% premium over 5 years to 2023
Returns and Performance Interpretation
The market humbly suggests that most investors would be better off with disciplined simplicity rather than chasing complex strategies, as the average investor’s return trails both the patient indexer and even a basic target-date fund.
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