How advisors can connect with hybrid investors
Hybrid investors blend self-direction with strategic guidance and they expect a seamless experience from both. You can strengthen your value by aligning with the expectations of this evolving client segment.
High-net-worth investors are increasingly digital, managing some assets themselves through online platforms while still expecting financial advisors to match that ease and accessibility. This blended approach defines today’s hybrid investor: part self-directed, part advised. Human advice remains a valued part of their wealth experience—but expectations have evolved.
It would be short-sighted to write off hybrid investors as first-timers with low assets—our 2024 Influential Investor Segment Study shows that these investors have an average of $1.5M in investable assets and are far from being just next-gen prospects.1 And our 2025 ETFs in Focus Study found 23% of US investors already identify as hybrid,2 and we forecast their ranks could continue to expand as more investors blend digital access with advisor relationships. To thrive in this dynamic environment, wealth management platforms and advisory practices must prioritize growth, embrace innovation, and be ready to reallocate resources as investor preferences shift.
At the center of this evolution are self-directed and hybrid investors. Hybrid investors manage wealth independently but also have an advisor, using both platforms and people to meet their financial needs. In 2021, one-third of affluent investors had a least one-self-directed investment account as well as a traditional financial advisor—a nine-point increase in just three years.3 This rise reflects two key drivers: the affordability and ease of self-service platforms, and the enduring value of human advice.
Yet, despite their significance and growth trajectory, hybrid investors remain overlooked in many advisory models where service structures have not kept pace with how these investors want to engage, receive advice, or make decisions.
Recognizing and responding to their preferences isn’t just about personalization. It’s a business development imperative for advisors looking to stay relevant and grow wallet share.
Over the past five years, markets have weathered a global pandemic, a sharp rebound, rising inflation, ongoing volatility, and shifting investor sentiment. These forces continue to shape how investors feel—and that emotional backdrop influences financial decision-making more than we often acknowledge.
Within this context, some self-directed investors are evolving toward hybrid engagement—seeking guidance in addition to control. At the same time, existing hybrid clients may be increasingly open to expanded support in areas like risk, planning, and tax. This dual potential makes hybrid investors a meaningful strategic lever. Understanding what they value, how they make decisions, and where they seek guidance is essential to building lasting connections with this influential group.
A greater sense of control: Strategic engagement around fees and risk
Hybrid investors reveal a clear set of priorities: strategic guidance when complexity arises, transparency on fees, and access to technology that enhances—not replaces—the advisor relationship. Advisors who recognize this shift can better align their service model with the behaviors that define hybrid engagement.
Control over fees: Transparency without fee avoidance
Hybrid investors are fee-aware—but not fee-averse. Our Influential Investor Segment Study found 45% of hybrid investors said they would consider switching or leaving their advisor if fees were raised, compared to 38% across all segments.4 But cost sensitivity alone doesn’t define this group. Our ETFs in Focus Study found hybrid investors also exhibit a higher risk tolerance than either self-directed or traditionally advised investors, signaling openness to more sophisticated investment conversations.5
This mindset shows up in how hybrid investors build portfolios. They allocate across a broader mix of asset classes—including alternatives and private investments—to access differentiated exposure.6
How to address this trend
Advisors may worry that fee sensitivity rules out higher-cost vehicles—but that’s not always the case. Many hybrid investors already hold alternatives and private investments, which often carry higher fees but offer differentiated value. What matters is how those costs are positioned.
This creates an opportunity to shift the conversation from price to purpose—anchoring fees within a broader framework that connects investment decisions to investor outcomes. When advisors tie fees to value, alignment follows.
In this context, diversification isn’t the destination—it’s the entry point. Advisors who treat it as a starting place for integrated strategies can deepen engagement, expand share of wallet, and build relationships aligned to evolving investor preferences.
Figure 2: Hybrid investors hold a broader mix of assets compared to other investors
| Investable assets | Investor type | |||||
| Assets that surveyed investors currently hold in their portfolios | Total | $25K-$249K | $250K+ | Self-directed | Hybrid | Advised |
| Cash | 80% | 76% | 83% | 79% | 82% | 80% |
| Stocks | 73% | 65% | 79% | 65% | 88% | 76% |
| Mutual funds | 65% | 51% | 76% | 53% | 78% | 82% |
| Net: Alternatives | 57% | 56% | 58% | 47% | 76% | 64% |
Real estate |
34% | 31% | 37% | 29% | 46% | 33% |
Commodities other than gold |
22% | 21% | 24% | 16% | 37% | 23% |
Cryptocurrency/digital assets |
22% | 24% | 20% | 18% | 37% | 15% |
Gold |
21% | 20% | 22% | 16% | 35% | 19% |
Hedge funds |
16% | 12% | 19% | 7% | 29% | 24% |
| Bonds | 52% | 41% | 62% | 42% | 69% | 64% |
| ETFs | 36% | 29% | 43% | 28% | 53% | 39% |
| Net: Private investments | 28% | 31% | 25% | 23% | 42% | 25% |
Private equity |
21% | 23% | 19% | 17% | 34% | 17% |
Private credit |
15% | 17% | 13% | 12% | 24% | 12% |
| ESG | 13% | 9% | 15% | 7% | 26% | 13% |
Source: State Street Investment Management Center for Investor Research, ETFs in Focus: Risk Management Attitudes & Behaviors, 2025. Question asked: Please indicate whether or not your current investment portfolio contains each of the following.
Control over risk: Selective engagement, sophisticated behaviors
Hybrid investors are often perceived as independent and confident in managing complexity and selective about when to engage with advisors. But when it comes to risk, their behavior tells a more nuanced story: hybrid investors are not avoiding advice. They’re using it when decisions require interpretation, not just access.
57% of hybrid investors rely on professional guidance to manage risk, a figure that exceeds even traditionally advised investors.7 Their behavior—frequent rebalancing, active hedging, and broader allocation to alternatives—reflects a deliberate approach to complexity and a clear demand for strategic advice.
How to address this trend
Hybrid investors are more likely than other segments to cite market volatility and technological disruption as top risks to their portfolios. They also express concern about inflation and changes in government policy which reflects a forward-looking mindset and a desire for informed guidance.8
Get more insights like these
How are investors using ETFs to navigate uncertainty, enhance liquidity, and diversify portfolios? Get the full results in our 2025 ETFs in Focus Study Findings.
Advisors have an opportunity to reframe their value proposition around risk. Self-service platforms rarely address tax planning, risk management, or integrated financial strategies. Advisors who emphasize these capabilities, especially for fee sensitive investors seeking control, can position themselves as indispensable. When advice is anchored in the risks investors actually prioritize, it comes not just relevant, but essential.
Technology: A competitive advantage
Hybrid investors place high value on the quality of a wealth management technology platform, viewing it not as a convenience, but as a core component of the advisory experience. Given that hybrid investors seek transparency and rely on both advisors and digital tools to make decisions, advisors who offer an accessible technology platform stand to gain an edge with this client segment.
Hybrid investors were more likely to say a good technology platform was important or extremely important when selecting an advisor (68%) compared to Gen X (63%), women investors (63%), and advised-only investors (60%).9
For hybrid investors, technology is a deciding factor in choosing an advisor. It allows them to easily monitor their investments and financial plans across multiple devices. It also strengthens the guidance you provide.
Even with the advancements in technology that are reshaping advisory services, the value of human relationships remains essential.
How to address this trend
To best connect with hybrid investors, optimize your service model to provide a seamless, technology-integrated experience that only enhances your interactions with clients. Where possible, explore ways to engage with and integrate direct brokerage with advisor-led offerings within your practice, to help you build deeper connections with this investor segment.
By integrating digital tools into the service model, advisory practices can streamline routine interactions, reducing operational friction and allowing advisors to focus on more strategic client engagement. This not only meets hybrid investors’ expectations but also enhances advisor productivity—creating scalable growth across the business.
The bottom line: Engage with intention
Hybrid investors are not a stepping-stone—they are a fast-growing, high-opportunity segment reshaping how financial advice is experienced. Their expectations—greater control, transparency, and strategic input—signal a clear call to action for advisors.
Yet, too often, this segment remains under-engaged. When relationships lack relevance, hybrid investors reallocate—not just assets, but attention. To earn a greater share of both, advisors must shift from passive retention to active engagement.
That means moving beyond traditional service models and designing an experience that meets hybrid investors where they are: digitally fluent, outcome-focused, and selective about where they seek guidance. Strategic conversations—particularly around risk, planning, and value—are the connective tissue.
The future of advice isn't about choosing between digital or human. It’s about delivering both—with clarity, confidence, and intention.
Get more insights like these
Our 2024 Influential Investor Segment Study uncovers what Millennial, Gen X, women, and hybrid investors want—and how you can better attract and retain these high-growth client segments.