Table of Contents
Scope and Themes
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- What you need to know
- Data sources
- Consumer survey data
- VMS
- Abbreviations and terms
- Companies mentioned in this report
Executive Summary
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- Industry overview
- Market size
- Competitive context
- The consumer
- Marketing and advertising
- Innovations and innovators
Insights and Opportunities
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- Key points
- High-income women need advice, willing to pay for it
- Hispanics are active, do-it-yourself investors
- ETF assets growing, but investors need more information
Inspire Trends
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- Rebuilding Trust
- Implications
Market Size
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- Key points
- U.S. stocks and bonds total $52.4 trillion
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- Figure 1: U.S. Securities Market Size, 2009 and 2010
- Mutual fund assets increase to $11.8 trillion in 2010
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- Figure 2: U.S. Mutual Funds and ETFs, total assets, 2009 and 2010
- Retirement assets rebound to $16 trillion in 2009
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- Figure 3: Composition of household assets, 2007 and 2009
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- Figure 4: U.S. Retirement Assets, by plan type, 2007-09
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- Figure 5: Individual Retirement Account assets, by type of institution, Q4 2009 and Q2 2010
- Figure 6: Defined Contribution Plan assets, by type of investment, Q4 2009 and Q2 2010
Segment Performance
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- Key points
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- Figure 7: U.S. Household Financial Assets, 2007-Q3 2010
- Figure 8: Household Net Worth, 2005-Q3 2010
- Figure 9: Household Net Worth, 2005-Q3 2010
Market Drivers
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- Key points
- Saving for retirement creates enormous opportunity for investment firms
- Study says 81% of all adults will not be able to retire by age 65
- Personal savings rate rebounds – but is it too little, too late?
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- Figure 10: U.S. personal savings rate, 1980-2010
- Boomers stand to inherit $8.4 trillion–maybe
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- Figure 11: Homeowner equity as a proportion of total real estate valuations, Q3 2010
- Figure 12: U.S. homeowner equity, 2005-Q3 1010
- High unemployment, reduced income remain obstacles to saving
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- Figure 13: Unemployment rate, January 2009-January 2011
Leading Companies
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- Key points
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- Figure 14: Leading self-directed investment companies, 2010
- Fidelity
- Charles Schwab
- Vanguard
- Sharebuilder from ING Direct
- USAA
- E*TRADE
- TD Ameritrade
- Scottrade Inc.
Innovation and Innovators
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- Key points
- Bank of America’s Merrill Edge discount brokerage platform
- A prepaid investment card for the unbanked
- Schwab expands into social media to reach young investors
- TD Ameritrade sponsors online financial reality series
Marketing Strategies
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- Key points
- Low prices, incentives, research tools dominate advertising
- Direct mail activity
- Notable direct mail, print, and email advertising
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- Figure 15: ING email advertisement, January 2010
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- Figure 16: ING direct mail ad, June 2010
- Figure 17: TD Ameritrade email advertisement, July 2010
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- Figure 18: TD Ameritrade direct mail advertisement, May 2010
- Figure 19: E*Trade email advertisement, September 2010
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- Figure 20: USAA direct mail ad, December 2010
- Figure 21: ING email advertisement, January 2011
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- Figure 22: Scottrade email advertisement, September 2010
- Figure 23: Schwab direct mail advertisement, June 2010
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- Figure 24: Fidelity direct mail advertisement, November 2010
- Figure 25: Vanguard direct mail advertisement, June 2010
- Television advertising
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- Figure 26: E*Trade television ad, 2010
- Figure 27: Charles Schwab television ad, 2010
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- Figure 28: TD Ameritrade television ad, 2010
- Figure 29: E*Trade television ad, 2011
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- Figure 30: E*Trade television ad, 2010
- Figure 31: Scottrade television ad, 2010
The Consumer
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- Key points
- One-third of those surveyed has a self-directed account
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- Figure 35: Ownership of a self-directed investment account, by gender, November 2010
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- Figure 36: Online trading services used, by gender, October 2006
- Age has little correlation with self-directed account ownership
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- Figure 37: Ownership of a self-directed investment account, by age, November 2010
- Income is a big factor, particularly among men
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- Figure 38: Ownership of a self-directed investment account, by income, November 2010
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- Figure 39: Ownership of a self-directed investment account, by gender and income, November 2010
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- Figure 40: Ownership of a self-directed investment account, by race/Hispanic origin, November 2010
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- Figure 41: Ownership of a self-directed investment account, by geographic area, November 2010
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- Figure 42: Reasons for managing own investments, by gender, November 2010
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- Figure 43: Reasons for managing own investments, by income, November 2010
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- Figure 44: Reasons for managing own investments, by gender and income, November 2010
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- Figure 45: Reasons for managing own investments, by age, November 2010
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- Figure 46: Favored attribute of investment company, by gender, November 2010
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- Figure 47: Favored attribute of investment company, by gender and income, November 2010
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- Figure 48: Favored attribute of investment company, by age, November 2010
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- Figure 49: Favorite attribute of investment company, by income, November 2010
- The vast majority of investors rarely trade
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- Figure 50: Trading frequency, by gender, November 2010
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- Figure 51: Consumers who have used online brokerage accounts, by gender and age, October 2006
- Youngest investors are most frequent traders
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- Figure 52: Trading frequency, by age, November 2010
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- Figure 53: Trading frequency, by income, November 2010
- High-income men are most active traders; most women rarely trade
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- Figure 54: Trading frequency, by gender and income, November 2010
- Hispanics are more frequent traders than most
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- Figure 55: Trading frequency, by Hispanic origin, November 2010
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- Figure 56: Trading frequency, by area, November 2010
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- Figure 57: Trading frequency, by region, November 2010
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- Figure 58: Types of financial products owned, by gender, November 2010
- Respondents tend to have same types of investments, regardless of age
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- Figure 59: Types of financial products owned, by age, November 2010
- Highest earners invest in most types of instruments
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- Figure 60: Types of financial products owned, by income, November 2010
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- Figure 61: Types of financial products owned, by gender and income, November 2010
- Fidelity is most popular investment company among self-directed investors
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- Figure 62: Location of self-directed account, by gender, November 2010
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- Figure 63: Location of self-directed account, by age, November 2010
- Fidelity is also favorite among highest earners
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- Figure 64: Location of self-directed account, by income, November 2010
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- Figure 65: Location of self-directed account, by gender and income, November 2010
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- Figure 66: Location of self-directed account, by region, November 2010
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- Figure 67: Location of self-directed account, by geographic area, November 2010
- A quarter of respondents have portfolios between $100K-$500K
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- Figure 68: Total assets in accounts, by gender, November 2010
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- Figure 69: Total assets in accounts, by income, November 2010
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- Figure 70: Total assets in accounts, by gender and income, November 2010
- Age is major factor in portfolio size
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- Figure 71: Total assets in accounts, by age, November 2010
- Online channel is most popular way to manage investment accounts
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- Figure 72: Favored communication method for managing account, by gender, November 2010
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- Figure 73: Favored communication method for managing account, by income, November 2010
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- Figure 74: Favored communication method for managing account, by gender and income, November 2010
- Favorite communications method varies greatly by age
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- Figure 75: Favored communication method for managing account, by age, November 2010
- Hispanics prefer online management more than others
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- Figure 76: Favored communication method for managing account, by Hispanic origin, November 2010
- Rural respondents prefer the in-person touch
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- Figure 77: Favored communication method for managing account, by geographic area, November 2010
- Investors get ideas from a wide variety of sources
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- Figure 78: Source of investment ideas, by gender, November 2010
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- Figure 79: Source of investment ideas, by gender and income, November 2010
- Young investors are do-it-yourselfers, older people rely on advisors
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- Figure 80: Source of investment ideas, by age, November 2010
- Highest earners are most self-reliant
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- Figure 81: Source of investment ideas, by income, November 2010
- Hispanics more inclined to take DIY route than others
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- Figure 82: Source of investment ideas, by Hispanic origin, November 2010
- Suburbanites, rural dwellers rely more on advisers than urban residents
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- Figure 83: Source of investment ideas, by area, November 2010
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- Figure 84: Number of active self-directed accounts, by gender, November 2010
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- Figure 85: average number of active self-directed accounts, by gender, November 2010
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- Figure 86: Number of active self-directed accounts, by gender and income, November 2010
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- Figure 87: average number of active self-directed accounts, by gender and income, November 2010
- Oldest respondents have the most accounts
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- Figure 88: Number of active self-directed accounts, by age, November 2010
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- Figure 89: Average number of active self-directed accounts, by gender, November 2010
- Highest earners have the most accounts
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- Figure 90: Number of active self-directed accounts, by income, November 2010
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- Figure 91: average number of active self-directed accounts, by income, November 2010
Cluster Analysis
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- Producers
- Demographics
- Characteristics
- Opportunity
- Enjoyers
- Demographics
- Characteristics
- Opportunity
- Advisees
- Demographics
- Characteristics
- Opportunity
- Cluster characteristics
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- Figure 92: Self directed finance clusters, December 2010
- Figure 93: Types of financial products owned, by self directed investment clusters, December 2010
- Figure 94: Reason for making own decisions, by self directed investment clusters, December 2010
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- Figure 95: Favored attribute of investment firm, by self directed investment clusters, December 2010
- Figure 96: Favored source of info about investments, by self directed investment clusters, December 2010
- Cluster demographics
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- Figure 97: Self directed investment clusters, by gender, December 2010
- Figure 98: Self directed investment clusters, by age group, December 2010
- Figure 99: Self directed investment clusters, by household income, December 2010
- Figure 100: Self directed investment clusters, by race, December 2010
- Figure 101: Self directed investment clusters, by Hispanic origin, December 2010
- Cluster methodology
Appendix: Trade Associations
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