Global X ETFs & SoFi InvestINVESTOR SURVEY Q1 2020
GLOBAL X ETFs & SoFi INVEST: INVESTOR SURVEY Q1 2020
Beyond Ordinary ETFsTM2
We surveyed investors at an interesting point in time:
Unemployment near multi-decade lows, with stocks at or
near all-time highs. Meanwhile, concern over COVID-19
had just barely entered the US public consciousness. Our
research captured the psyche of investors just a few short
weeks before markets were upended by volatility. While
few could have predicted the events that followed, the
responses tapped into broader truths that will resonate
beyond the Q1 2020 sell-o� :
• Investors generally had a positive outlook on the economy, but were split on how various
geopolitical factors (e.g., relations with China, 2020 elections) could infl uence their portfolio
• Investors indicated a likelihood to continue adding stock exposures, particularly US Large
Cap and Technology Sector stocks
• Despite optimism towards the economy and markets, investors were less bullish on their
personal fi nancial situations, including wage increases and ability to pay o� debt
• Responses suggested a potential overconfi dence, particularly among newer investors, likely
fueled by strong market returns in the preceding quarters. This takeaway looks prescient in
hindsight and supports the need for further fi nancial education as many investors experience
their fi rst bear market
• Familiarity with ETFs was low, furthering the case for greater fi nancial education
Global X ETFs and SoFi partnered to explore the factors that shape consumer investment
decisions. In support of these objectives, a 10-minute unbranded online survey was conducted
in December 2019, among 500 general population investors (i.e., 18 years or older with at
least one investment account).
BACKGROUND & KEY FINDINGS
Gen Pop Investors(ages 18+)
N=500
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• More than half (54%) of respondents were optimistic about the economy,
compared to just 11% who reported being pessimistic
• Almost 3/4s (74%) of respondents expected the economy would
grow at a similar or faster pace in 2020 compared to 2019
54% 33% 11% 3%
Optimistic
ATTITUDE TOWARD ECONOMY
Neutral Pessimistic No Opinion
27% 47% 21% 5%
Accelerate
2020 ECONOMIC PERFORMANCE
Grow at Similar Pace Decelerate Recession
Q1. Overall, how would you characterize your attitude towards the US economy?Q2. How do you think the US economy will perform in 2020?Base: Gen Pop (N=500)
Investors Were Optimistic About The Economy As Recently As December
GLOBAL X ETFs & SoFi INVEST: INVESTOR SURVEY Q1 2020
Beyond Ordinary ETFsTM4
• Nearly half of investors expressed preference for US Large Cap
stocks or high growth Technology Sector stocks, likely infl uenced
by their strong recent performance
• Thematically, investor’s top interests were sustainable investments
and companies involved in robotics & AI and cannabis companies
BROAD ASSET CLASS PREFERENCES
Large companiesin the US Sustainable investing
Robotics and ArtificialIntelligence companies
Cannabis companies
Autonomous and ElectricVehicle companies
Cybersecurity companies
Video Games andEsports companies
FinTech companies
High growthtechnology stocks
Large companiesaround the world
Fixed income securitiesissued by govs and corps
outside of the US
Bonds fromUS companies
Large companies indeveloping countries
THEMATIC PREFERENCES
24%
23%
11%
14%
14%
14%
22%
17%
17%
14%
8%
12%
11%
Q29. Which of the following ETFs would you be most likely to invest in? Q30. Which of the following investment themes are you most likely to invest in?
Investors Were Looking to US and Tech Exposure While Markets Were Near All-Time Highs
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Q8. How would you characterize your wealth status? Q9. Compared to your friends or peers, which of the following most closely represents how you feel about your wealth status? Q10. On a monthly basis, do you fi nd you are spending:Q11. Compared to your job-related income in 2019, do you believe that your job-related income in 2020 will be: Base: Gen Pop (N=500)
PERCEIVED WEALTH STATUS
Middle Class 52% Upper Middle Class / Wealthy 32%16%
INCOME - PEER COMPARISON
More Money 36% Similar Amount of Money 51%
Less Money
13%
PERCEIVED INCOME INCREASE IN 2020
A Bit More 36%A Lot More 17% About the Same 40%
A Bit Less
A Lot Less
4% 2%%
Lower / Working ClassLower / Working Class
SPENDING - PEER COMPARISON
Close to What You Make 26%A Lot More 13% Slightly Less 28% A Lot Less 1515%%Slightly More 17%
• About half viewed themselves as being middle class and having
incomes comparable to their peers
• Nearly half (46%) did not expect a raise in 2020
Investors Had Been Feeling Less Confident in Their Personal Financial Situations
GLOBAL X ETFs & SoFi INVEST: INVESTOR SURVEY Q1 2020
Beyond Ordinary ETFsTM6
Q14. What types of debt, if any, do you currently have? Q15. Approximately how much debt do you have for each of the following? Q16. How soon do you expect the debt to be paid o� ? Base: Gen Pop (N=500) *Base have some form of debt
PREVALENCE OF DEBTAMONG POPULATION
LENGTH OF PAYMENT
49%
Credit Card
33%
Auto Car Loan
17%
StudentLoan
57%
32%
16% 29% 19% 21% 10% 6%
43% 21%
24% 4%
2%
2%
12%
2%
3%
AVG. AMOUNTOF DEBT*
$3.3K(n=245)
$8.3K(n=150)
$8.3K(n=150)
NextYear
Next3 Years
Next5 Years
> Than 10 Years
Next 10 Years
Never
• Nearly half (49%) of those surveyed were carrying high interest
credit card debt, and 43% expected their debt to carry over
beyond 2020
• 37% of those with student loan debt expected it to take more than
10 years to pay o� their debt
Debt Burden May Fuel PersonalWealth Concerns
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• Investors with less than one year of experience were most likely
to report being aggressive investors, picking individual stocks and
spending less than one hour researching their investments
• By contrast, the majority of investors with more than 20 years
of experience reported being patient, using ETFs, and spending
more than two hours researching their investments before trading
Q19. Which best describes your attitude towards investing? Q20. When making an investment, how long do you spend analyzing or researching ideas? Q26. Which statement most closely resembles your investment approach?Base: Gen Pop < 1 Year (n=140), 20+ Years (n=96). All Investors: Base: Gen Pop (N=500)
Inexperienced Investors Are at the Greatest Risk of Making Financial Mistakes
INVESTING TENURE
< 1 Year 20+ Years All Investors
I am an aggressive investor, comfortable with risk and trading regularly 46% 16% 27%
I am a patient investor. When I make an investment, I hold on to it for a very long time 39% 67% 56%
I am a cautious investor, hesitant to make investments or trade 15% 18% 17%
< 1 Year 20+ Years All Investors
I pick individual stocks 53% 37% 42%
I invest in very broad stock funds or ETFs 37% 50% 46%
I invest in more narrow stock funds or ETFs 10% 14% 11%
< 1 Year 20+ Years All Investors
3+ hours 14% 34% 24%
2-3 hours 31% 18% 32%
An hour or less 50% 29% 35%
None 5% 19% 8%
GLOBAL X ETFs & SoFi INVEST: INVESTOR SURVEY Q1 2020
Beyond Ordinary ETFsTM8
Q17. Approximately, how long ago did you start investing? Q18. How confi dent are you when it comes to investing? Base: Gen Pop (N=500)Q19. Approximately, how long ago did you start investing?
19% 28% 42% 9% 2%
INVESTING CONFIDENCE
INVESTING TENURE
19% 28% 24% 28%
Extremely Confident Very Confident Somewhat Confident Not Very Confident Not At All Confident
Over 20 Years 5-20 Years 1-5 Years Less Than 1 Year
• Overconfi dence is the largest concern. While over half of investors
had been participating in the markets for less than 5 years, 47%
were very or extremely confi dent, and nearly 9 in 10 were at least
somewhat confi dent – likely a result of the strong recent performance
across asset classes
• Investors with less experience demonstrated even higher confi dence
and less pessimism than those with more experience, possibly
because they had not experienced a bear market environment
The Need For Greater FinancialEducation is Clear
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• 37% of investors who were extremely or very confi dent had been
investing for less than 1 year, nearly double the percentage of
those who had been investing for 20+ years
• Investors with 20+ years of experience were more than twice as
likely to be pessimistic about the economy than those with less
than 1 year of experience
INVESTOR EXPERIENCE
INVESTING CONFIDENCE ATTITUDE TOWARDS ECONOMY
Extremely/Very
SomewhatNot Very/ Not
At AllOptimistic Neutral Pessimistic
< 1 Year 37% 21% 18% 27% 35% 11%
1-5 Years 19% 21% 28% 20% 26% 38%
5-20 Years 24% 30% 40% 33% 23% 29%
20+ Years 20% 20% 14% 21% 16% 23%
GLOBAL X ETFs & SoFi INVEST: INVESTOR SURVEY Q1 2020
Beyond Ordinary ETFsTM10
• With approximately $4 trillion in assets under management, ETFs
are becoming an important part of the fi nancial landscape, o� ering
potential for e� cient, diversifi ed exposure to certain asset classes,
geographies and strategies
• Despite their popularity, half of investors reported having a limited
understanding of ETFs
• Younger, male, and wealthier investors claim greater expertise and
familiarity with ETFs, demonstrating the need for more inclusivity
when it comes to fi nancial education
Q28. How knowledgeable would you say you are about ETFs?Base Gen Pop: Male (n=290), Female (n=168): Millennial (n=207), Gen X (n=111), Baby Boomer (n=133). <$50k (n=174), $50k-$99k (n=206), >$100k (n=117).
ETF Education Needs to Expand, Become More Inclusive
ETFKNOWLEDGE
GENDER GENERATION INCOME BRACKET
Male Female Millennial Gen XBaby
BoomersSwing
Under $50K
$50K - $99K
Over - $100K
Expert 13% 8% 16% 12% 3% - 10% 7% 22%
Familiar 46% 30% 44% 46% 34% 32% 33% 47% 39%
Aware 36% 45% 32% 34% 54% 46% 45% 39% 30%
Not Aware 5% 16% 8% 8% 9% 23% 13% 7% 9%
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• Building confi dence within one’s personal fi nancial situation should take precedent
over investing. Budgeting appropriately, paying down debt, and establishing emergency
funds are important steps before investing.
• As observed in Q1 2020, unpredictable ‘black swan’ events can change economic
realities quickly. Investors should remain diversified across asset classes and
geographies to mitigate these risks, which can often be achieved by using ETFs.
• Don’t let recent market performance infl uence decisions: Neither the exuberance of
late-2019 nor the intense bearishness of early-2020 are typical, and historical patterns
rarely repeat themselves. Over the long run, successful investing favors patience,
careful research, and diversifi cation over concentrated, aggressive, or impulsive trading.
• Financial education is a lifelong pursuit, that involves understanding one’s changing
personal fi nancial situation, the investment options available, and the broader
investment climate. Consuming educational materials from reputable sources should
remain a priority.
INVESTOR TIPS BASED ON SURVEY FINDINGS
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NOTES
GLOBAL X ETFs & SoFi INVEST: INVESTOR SURVEY Q1 2020
GLOBAL X ETFs & SoFi INVEST: INVESTOR SURVEY Q1 2020
GLOBAL X ETFs & SoFi INVEST: INVESTOR SURVEY Q1 2020
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SEI Investments Distribution Co. (1 Freedom Valley Drive, Oaks, PA, 19456) is the distributor for the Global X Funds.
Investing involves risk, including the possible loss of principal. Diversifi cation does not ensure a profi t or guarantee against a loss. This information is not intended to be individual or personalized investment or tax advice and should not be used for trading purposes. Please consult a fi nancial advisor or tax professional for more information regarding your investment and/or tax situation.
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Beyond Ordinary ETFsTM