E*TRADE Study Reveals Widespread Investor Satisfaction with their Investment Management Over the Past Year

E*TRADE Securities

12/15/16
Investor Satisfaction Survey - image
Study also identified top investing resolutions for 2017 including using digital tools more often, adjusting asset allocations, and learning more about participating in the market

 

E*TRADE Financial Corporation today announced results from the most recent wave of StreetWise, E*TRADE’s quarterly tracking study of experienced investors. Results indicate that despite a year of significant volatility and major market events, the vast majority of investors are satisfied with their investment management.

Satisfaction aside, investors also identified their resolutions, and the results indicate that the top four resolutions are to:

  1. Use online tools to check allocations. 42 percent of investors resolve to use online tools more regularly to make sure that they are properly diversified and meeting their goals.
  2. Adjust asset allocations. Nearly 40 percent of investors expressed a desire to tweak their mix of assets to reflect changing market conditions.
  3. Leverage educational resources. 35 percent of investors surveyed want to learn more about investing, trading, and the markets.
  4. Increase retirement plan contributions. Remaining mindful of their long-term goals, 34 percent of investors want to allocate more to their retirement plan in 2017. .

“In the work we do with investors, we see that satisfaction comes from having a plan and sticking to it. It was a turbulent ride to say the least in 2016, and the data suggests investors took short-term market fluctuations in stride,” said Lena Haas, SVP of Investing at E*TRADE Financial. “Further, while these investors are satisfied with the investing path they are on, they are ready to kick their management up a notch in 2017.”

Ms. Haas observed the following additional insights:

  • Millennials are the most interested in learning more. Being relatively new to investing, this generation seems hungry to expand their knowledge, expressing a greater desire than Gen X and Boomers to learn more about investing, trading, and the markets.
  • Millennials are also most focused on retirement saving. Nearly half of Millennial investors surveyed want to increase the amount they contribute to their retirement plan, considering their longer time horizons and the potential for compounding growth.
  • Senior investors want to tweak their allocations. More than half of Boomers surveyed plan to make changes to their portfolio allocation in 2017. Since these investors are closing in on retirement, or may already be retired, they may feel their portfolios need to be adjusted to preserve income through tax-loss harvesting, align with post-employment goals, or reflect changes in their risk tolerance.

 

About the Survey

This wave of the survey was conducted from October 1 to October 10 of 2016 among an online U.S. sample of 954 self-directed active investors who manage at least $10,000 in an online brokerage account. The survey has a magin of error of ±3.18 percent at the 95 percent confidence level. It was fielded and administered by ResearchNow. The panel is broken into thirds of active (trade more than once a week), swing (trade less than once a week but more than once a month) and passive (trade less than once a month). The panel is 65 percent male and 35 percent female with an even distribution across online brokerages, geographic regions, and age bands.

Referenced Data

  Looking back on 2016, are you satisfied with how you managed your investments?

 

TOTAL Q4'16

AGE:
25–34

AGE:
35–54

AGE:
55+

 Top 2 Box

90%

90%

89%

90%

   Very satisfied

27%

27%

24%

31%

   Somewhat satisfied

63%

63%

65%

59%

   Somewhat dissatisfied

9%

10%

10%

9%

   Very dissatisfied

1%

0%

1%

1%

 Bottom 2 Box

10%

10%

11%

10%

 

  In 2017, my financial resolution is? (Top 2)

 

TOTAL  Q4'16

AGE: 25–34

AGE: 35–54

AGE: 55+

 Use online tools more often to make sure I am properly diversified and meeting my goals

42%

43%

39%

44%

 Change my asset allocation to better reflect market conditions

39%

24%

40%

52%

 Learn more about investing, trading, and the markets

35%

43%

30%

31%

 Increase the amount I contribute to my retirement plan

34%

48%

42%

12%

 Seek the help of investing professionals when I need it

26%

29%

26%

20%

 Not make any changes to how I am investing

22%

13%

21%

36%

“Millennials” defined as age 25–34 // “Gen X” defined as age 35–54 // “Baby Boomers” defined as age 55+