Socially Responsible Investing Survey. September 2018

Transcription

1 Socially Responsible Investing Survey September

2 Research Method Socially responsible investments investments that aim to promote environmental stewardship, consumer protection, human rights, and diversity; while avoiding certain businesses, for instance those involved in the production of alcohol, tobacco, fossil fuels, and/or weapons. A 10-minute online survey was conducted with 1,056 American adult investors with at least $250,000 in investable assets by True North Market Insights, between March 16, 2018 and March 19, 2018, on behalf of TD Ameritrade Holding Corporation. The statistical margin of error for the total sample of 1,056 American adults within the target group is +/- 2.6 percent. TD Ameritrade and True North Market Insights are separate and unaffiliated firms and are not responsible for each other s services or policies. About TD Ameritrade Holding Corporation TD Ameritrade provides investing services and education to more than 11 million client accounts totaling more than $1.2 trillion in assets, and custodial services to more than 6,000 registered investment advisors. We are a leader in U.S. retail trading, executing an average of more than 780,000 trades per day for our clients, more than a quarter of which come from mobile devices. We have a proud history of innovation, dating back to our start in 1975, and today our team of nearly 10,000-strong is committed to carrying it forward. Together, we are leveraging the latest in cutting edge technologies and one-on-one client care to transform lives, and investing, for the better. Learn more by visiting TD Ameritrade s newsroom at or read our stories at Fresh Accounts. Brokerage services provided by TD Ameritrade, Inc., member FINRA ( ( 2

3 Almost one in three (30%) investors have considered making socially responsible investments Women are more likely than men to consider making socially responsible investments Yes 34% No 30% 26% 70% Men Women Q50. Base: All Respondents n=1,056 3

4 Millennials are more likely to consider making socially responsible investments compared to other generations One in four (25%) Boomers are likely to consider making socially responsible investments 43% 33% 25% 18% Matures Boomers Gen X Millennials Q50. Base: All Respondents n=1,056 4

5 45% of investors consider socially responsible investing important One in five (19%) of investors consider socially responsible investing very important % 4% 11% 12% 14% 23% 6% 8% 7% 13% Very Important Very Unimportant 8 to 10: 19% 1 to 3: 28% Q53. Base: All Respondents n=1,056 5

6 60% of Millennials view investing in socially responsible investment/vehicles as important While only 36% of Boomers feel the same 30% 25% 20% 15% 10% Matures Boomers Gen Xers Millennials 5% 0% Very important Very unimportant Q53. Base: All Respondents n=1,056 6

7 Investors favor social, environmental factors (67%) over financials (30%) Rate of return is a priority only for 17% of investors who considered socially responsible investments 4% 16% Social impact of the investments involved 17% Environmental impact of investments involved The goals of the companies involved Financial factors: 30% 13% They have a high social responsibility rating from an independent research firm 13% Social and environmental factors: 67% If they are engaged in polluting activities, such as fossil fuels or chemicals If they are affiliated with producing or selling firearms Past performance of the investment 3% 4% 13% 16% Rate of return None of the above Q51. Base: Those who considered making socially responsible investments n=314 7

8 Millennials care most about the goals of the companies when it comes to considering socially responsible investments Out of all generations, members of Gen X care most about the rate of return 28% 22% 20% 20% 17% 10% 12% 14% 12% 14% 13% 13% 11% 12% 14% 15% Matures Boomers Gen X Millennials Rate of return The goals of the companies invested in Environmental impact of investments involved The social impact of the investments involved Q51. Base: Those who considered making socially responsible investments n=314 8

9 More than half (51%) of those who ve considered social responsible investments claim to have at least 21 percent of their total holdings dedicated to socially responsible investments Three in four (75%) investors who ve considered making socially responsible investments have at least some of their holdings in these types of investment vehicles 30% 25% 25% 13% 5% 3% 1-20% 21-40% 41-60% 61-80% % I am not currently invested in a socially responsible holding. Q52. Base: Those who considered making socially responsible investments n=314 9

10 Three out of five (60%) Millennials who have considered socially responsible investments have at least 21% of their total holdings dedicated to this area Gen X places second with 49%, while Boomers stand at 45% Matures Boomers Gen X 40% Millennials 35% 30% 34% 34% 29% 34% 32% 34% 30% 25% 20% 19% 17% 22% 19% 20% 23% 15% 10% 5% 11% 11% 2% 2% 3% 4% 7% 5% 2% 3% 2% 0% 1-20% 21-40% 41-60% 61-80% % I currently have no socially responsible holdings Q52. Base: Those who considered making socially responsible investments n=314 10

11 Human rights is the most important value for investors who consider social values, closely followed by environmental impact, and diversity 19% of investors who consider social values say human rights is most important; 16% say environmental impact Human rights 19% Environmental impact 16% Diversity 12% Consumer protection 11% Religious beliefs 9% Not involved with producing or selling firearms 6% Public health Philanthropy Gender equality Employees' rights Community service 5% 5% 4% 4% 4% Other Political activism Not involved with producing or selling military weapons 2% 2% 2% Q55. Base: Those who consider social values while investing Respondents n=792 11

12 Boomers vs. Millennials: Which value is most important to them? Boomers who consider social values favor human rights, religious beliefs, and diversity, while Millennials prioritize environmental impact and human rights 24% 18% Boomers Millennials 15% 13% 13% 14% 9% 7% 7% 3% Environmental impact Human rights Religious beliefs Diversity Philanthropy Q55. Base: Those who consider social values while investing Respondents n=792 12

13 Men vs. Women: Which value is most important to them? Women favor human rights and gender equality, while men prioritize diversity 21% Men Women 16% 15% 9% 7% 2% Human rights Diversity Gender equality Q55. Base: Those who consider social values while investing Respondents n=792 13

14 Nearly a third (30%) of investors would move their investment account to a different firm to gain broader access to socially responsible investment offerings Women are more likely than men to move their investment account Yes No 30% 35% 25% 70% Men Women Q56. Base: All Respondents n=1,056 14

15 Almost half (47%) of Millennials would move their investment account to a different firm to gain broader access to socially responsible investment offerings Less than a quarter of Boomers would do the same. 47% 34% 18% 24% Matures Boomers Gen X Millennials Q56. Base: All Respondents n=1,056 15