METHODOLOGY, GOALS & DEMO PROFILE

[Pages:42]2016 MUTUAL FUND & ETFS PROPRIETARY STUDY

METHODOLOGY, GOALS & DEMO PROFILE

Online study with WSJ Opinion Leaders Reader Panel, in field June 1?July 3, 2016; respondents screened for ownership of mutual funds and/or ETFs.

Note: Due to a change in methodology, we cannot trend results from prior studies.

Goals:

Understand current mutual fund & ETF investment strategies among different generations, [Millennials, Gen X and Baby Boomers] and DIY investors vs. those that use a financial adviser

Measure perceptions (familiarity/reputation) and usage of 48 mutual fund/ETF brands

Respondents

Average Age Employed Average HHI

3,208 59 67% $287,391

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FINANCIAL PROFILE

Even those that use an FA are highly involved in mutual fund/ETF decisions

Avg. value of portfolio On average, % of portfolio in employer-sponsored plan On average, % of portfolio privately purchased Mutual funds/ETF purchases : (Base: Those that use an FA)

Entirely self-directed FA & I collaborate FA handles completely

2016 $2,128,687

31% 69%

8% 77% 15%

Source: WSJ. Insights 2016 Mutual Fund & ETF Proprietary Investors Study; Base: Total respondents n=3,208

46%

43%

My investments are entirely self-directed, I do not use a financial adviser

54% Total

57%

I use a financial adviser for all or some of my portfolio

Own ETF

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OVERALL, HALF USE AN FA

But not surprisingly, younger generations are less likely to use an adviser

46%

41%

64%

57%

54%

36%

43%

Total

Millennials

Gen X

59% Boomers

My investments are entirely self-directed, I do not use a financial adviser

I use a financial adviser for all or some of my portfolio

Source: WSJ. Insights 2016 Mutual Fund & ETF Proprietary Investors Study; Base: Total respondents n=3,202; Millennials age 18-39 n=262, Gen X age 40-54 n=560 Boomers age 55+ n=2386

Q3. Do you currently use a professional financial adviser for all or any portion of your investments?

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ACTIVELY MANAGED FUNDS ARE OVER 50% OF PORTFOLIO

OWNERSHIP OF INDEX VS. ACTIVELY MANAGED FUNDS

Total

43%

57%

DIY Investor

54%

46%

Use an FA

34%

66%

Index Funds Actively Managed

Source: WSJ. Insights 2016 Mutual Fund & ETF Proprietary Investors Study; Base: Total respondents n=3,208; DIY Investor n=1,476, Use an FA n=1,732

Q5. Approximately what % of your mutual funds/ETFs (in dollar value) are invested in index funds vs. actively managed funds?

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INVEST ACROSS MULTIPLE ASSETS

Average value of portfolio: $2,128,687

81%

$357,799

$237,344 43%

86% $369,712

61% 64%

$231,433

$232,848

86% $182,615

60% $255,487

Individual Stocks Individual Bonds Pure Stock Mutual Hybrid Mutual Pure Bond Mutual Money Market

ETFs

Funds

Funds

Funds

Funds

2016

2016 Avg. $

$500,000

$400,000

$300,000

$261,418 $200,000

28%

$100,000

$0

$100,000

Annuities

Source: WSJ. Insights 2016 Mutual Fund & ETF Proprietary Investors Study; Base: Total respondents own that asset class, base sizes vary; Q19 What is the approximate asset value of your

household's investments in each of the following financial instruments/investments now held by you or other members of your households, including employer-sponsored and privately held?

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73% agree

"I invest in mutual funds/ETFs because it is easier

than selecting individual stocks"

Source: WSJ. Insights 2016 Mutual Fund & ETF Proprietary Investors Study; Base: Total respondents n=3,208

Q6.. How much do you agree or disagree with the following statements about investing in mutual funds and ETFs? Agree Strongly/Somewhat

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DIRECT PURCHASE & EMPLOYER PLANS TOP LIST WHEN INVESTING

SOURCES USED TO OBTAIN CURRENTLY OWNED MUTUAL FUNDS/ETFS Employer-sponsored plan 48.7%

Mutual Fund Company Mutual fund company 40.8%

Employer-Sponsored Plan

Online Brokerage

30%

Full-Service Broker

27%

Independent Financial Adviser

24%

Insurance Company

5%

Bank

4%

49% 45%

Source: WSJ. Insights 2016 Mutual Fund & ETF Proprietary Investors Study; Base: Total respondents n=3,208

Q14. How did you obtain the mutual funds and/or ETFs currently owned by your household?

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