Inside

the Minds of
America’s Wealthiest

Investment strategies of high net worth and ultra high net worth individuals.

Wealthy investors have a broad range of attitudes and investment strategies. Here are some key trends we uncovered, based on a recent proprietary study of 3,028 readers of The Wall Street Journal and Barron’s.

High net worth investors (HNWI) defined as $1M-$9.9M in investable assets;
Ultra high net worth investors (UHNWI) defined as $10M+ in investable assets.

Wealthy investors
are focused on
inflation and taxes,
not market
volatility.

Even in the face of expected market volatility, the affluent aren’t particularly worried about their near-term financial position.

Inflation, tax policy changes and political polarization were cited as their top 3 issues (out of 11 choices).

HNWI

UHNWI

Inflation

Tax policy changes/
potential changes

Increasing political
polarization

Source: Wall Street Journal | Barron’s Group Intelligence HNW and UHNW Investor Study. Base: HNWI n=2,529, UHNWI n=499. Q. Below are some topics of concern that someone could be thinking about. Of these, which are most important to you? Select five.

Only 9% believe their households will be
worse off financially a year from now.

Key concerns are inflation and tax policy.
UHNWI are significantly more concerned
about tax policy (78%) than their HNWI
counterparts (60%).

Many UHNW and HNW individuals are independent and feel confident (perhaps overly so) about traditional and alternative investment classes without a financial advisor.

Nearly half of HNWI self-manage their portfolios More than a third of UHNWI are entirely self-managed

Entirely Self-Directed

FA Manages

Collaborate Actively With FA

Note: Numbers may not equal 100% due to rounding.

Source: Wall Street Journal | Barron’s Group Intelligence HNW and UHNW Investor Study. Base: HNWI n=2,529, UHNWI n=499. Self-directed/DIY n=1,417, FA-controlled n=227. Q. Which of the following statements best describes your level of involvement in your investments?

Self-directed/DIY manage their investments on their own. FA-controlled have given control of their investments to a financial advisor (including or excluding any 401(k)-type investments).

They prefer a
DIY approach.

Interest in alternatives
continues to be strong.

Wealthy investors expect to rely more heavily on alternative investments in the coming year.

Need for access to alternative investments and asset classes

Increase a lot

Increase a little

Stay the same

Decrease a little

Decrease a lot

The majority (58%) of advisors for wealthy clients said they would increase their holdings in alternatives over the next three years, according to a December 2021 study by Wall Street Journal | Barron’s Group Intelligence of 160 financial advisors for high net worth investors.

Note: Numbers may not equal 100% due to rounding.
Source: Wall Street Journal | Barron’s Group Intelligence HNW and UHNW Investor Study. Base: Total respondents n=3,028. Q. In what ways do you think the investment environment of the next year will be different from the environment of the past year?

The portfolios of DIY investors are pretty similar to those who use financial advisors.

How do you anticipate relying on these investment vehicles in the future?

DIY

IRA

Individual
Stocks

Mutual
Funds

Residential
Real Estate

Exchange
Traded
Funds

Life
Insurance

Work
Sponsored
401(k)

Individual
Bonds

Commercial
Real Estate/
REITs

Precious
Objects

Annuities

Futures/
Options

Crypto-
currency

Venture
Capital

Hedge
Fund

Currency/
Forex

Derivatives

Source: Wall Street Journal | Barron’s Group Intelligence HNW and UHNW Investor Study. Base: Self-directed/DIY n=1,417, FA-controlled n=227. Q. Below is a list of investment vehicles that you may or may not invest in personally. How do you anticipate relying on these investment vehicles in the future? For each investment vehicle, please select which statement best reflects your current status. Q. Below is a list of more alternative investment vehicles that you may or may not invest in personally. How do you anticipate relying on these investment vehicles in the future? For each investment vehicle, please select which statement best reflects your current status.

Self-directed/DIY manage their investments on their own. FA-controlled have given control of their investments to a financial advisor (including or excluding any 401(k)-type investments).

Nearly 8 out of 10 agree they are “active
investors,” while more than three-fourths agree
they like using stock and investing research tools.

They remain
lukewarm on ESG
investing.

Wealthy DIY investors are active and involved.

HNWI

UHNWI

I enjoy delving into
stock and investing
research tools

I would like to grow my
knowledge in personal
finance

I consider myself
to be an active
investor

Source: Wall Street Journal | Barron’s Group Intelligence HNW and UHNW Investor Study. Base: Among self-directed/DIY, HNWI n=1,224, UHNWI n=193. Q. In thinking about your own investment style, how much do you agree or disagree with the following statements as they relate to your outlook on investing?

There’s growing investor interest in ESG in general, but that interest wanes as wealth increases.

I am already invested

Definitely interested

Somewhat interested

Neutral

Not very interested

Definitely not interested

Note: Numbers may not equal 100% due to rounding.
Source: Wall Street Journal | Barron’s Group Intelligence HNW and UHNW Investor Study. Base: HNWI n=2,529, UHNWI n=499. Q. Based on what you currently know, how interested are you in investing in companies that are committed to ESG business practices?

The reason for this waning interest? UHNWI prioritize investment returns above all else and aren’t convinced that ESG can produce better long-term returns.

Top Reasons for Not Investing in ESG, Among UHNWI

Not relevant
to investment
decision

I prioritize maximizing
my return

Insufficient track
record on ESG
strategies

Lack of quality/
standardized company-
level data

I don’t care if my
investments align with
my values

Source: Wall Street Journal | Barron’s Group Intelligence HNW and UHNW Investor Study. Base: UHNW among those who are neutral, or have little to no interest in ESG investing n=395. Q. Which of the following are reasons why you would not invest your money in ESG investments? (Please select all that apply.)

Only a small minority (3%) are currently
invested in ESG strategies. But there is
interest. More than 1 in 5 (22%) indicated
they are “definitely interested” in investing
in ESG strategies.

Key Points:

The amount of investable assets is just one factor to consider when gauging the attitudes of wealthy investors. Another is how likely they are to use professional advisory services.

We found that there is a sizable, overlooked segment of wealthy investors who prefer to make all of their investment decisions independently. These investors relish investing as a hobby.

Alternative investment vehicles continue to be of interest, especially among UHNWI ($10M+).

Despite strong interest, ESG isn’t a significant investment strategy at the moment for wealthy investors, who are largely focused on returns.

Learn more about how The Wall Street Journal | Barron’s Group uses research-driven insights to develop engaging content. katie.weber@wsjbarrons.com

katie.weber@wsjbarrons.com katie.weber@wsjbarrons.com

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Methodology

The Wall Street | Barron’s Intelligence Group conducted an online quantitative survey from March 4-April 8, 2022, of high net worth and ultra high net worth individuals who are readers of The Wall Street Journal and Barron’s.

Respondent Profiles	HNWI	UHNWI
Investable Assets	$1M-$9.99M	$10M+
Base:	2,529	499
Gender (M/F)	90%/10%	93%/7%
Average Age	65	66

Relationship With FA:
Entirely Self-Directed/Do Not Use an FA	49%	41%
Collaborate on Decisions	44%	51%
FA Has Complete Control	7%	8%

	Self-Directed/DIY	FA-Controlled
Base:	1,417	227
Gender (M/F)	93%/7%	92%/7%
Average Age	65	65
Investable Assets (Average)	$4.8M	$5.3M