Investors who have ETFs in their investment portfolios are more likely to be optimistic about their financial future (81%) than investors who do not (71%).
Figure 1: Personal Financial Outlook Over the Next Year
An ETF Ownership Comparison
Approximately three-quarters of investors are optimistic about their financial future over the next 12 months. More investors in EMEA report being optimistic than those in the US and APAC.
More Millennials than Gen X and Baby Boomers are optimistic about their financial future. In particular, Baby Boomers in EMEA are less likely to be optimistic about their financial future compared to Baby Boomers in the US and APAC.
Nearly half of investors who own ETFs think the returns of the S&P 500® Index will be up by the end of 2023, which is significantly greater than those who do not own ETFs.
The majority of investors surveyed, regardless of one’s region or ownership of ETFs, think the S&P 500® returns will be up or flat by the end of 2023. Less than 25% of investors think it will be down.
Of the generations surveyed, Millennials are the most likely to think the S&P 500® returns will be up, followed by Gen X, and then Baby Boomers.
Figure 6: Expectations for S&P 500® Returns at the End of 2023
A Generational Comparison by Region
Around the globe, nearly as many investors are pessimistic (32%) about their respective country’s economic outlook in the next 12 months as are optimistic (39%).
In the US, pessimism about the country’s 12-month economic outlook has increased more than 50% over the past three years. In addition, investors in the US are likely to be more pessimistic and less optimistic about the country’s economic outlook than investors in EMEA and APAC.
Figure 8: Investors’ Sentiment Regarding Their Country’s Economy
A US Trend and Regional Comparison
Generationally, more Millennials are optimistic about their country’s economic outlook than Gen X and Baby Boomers.
The rising pessimism toward countries’ economies could be directly correlated to the unsettling nature of today’s volatility, as well as the other uncertainties that global markets are experiencing.
In the volatile market environment, what are the realities individual investors are experiencing?
State Street Global Advisors, in partnership with Prodege and A2B, conducted a study surveying more than 1,000 individual investors. Read more about the details.
Investing involves risk including the risk of loss of principal.
The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent.
Diversification does not ensure a profit or guarantee against loss.
Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.
All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.