CONDUCTED BY:2023 Trends in Investing SurveyoFinancial Planning®f2023 Trends in InvestingThe 2023 Trends in Investing Survey was conducted by the Journal of Financial Planning and the Financial Planning Association from Feb. 14, 2023, to April 7, 2023. The survey received 191 responses from financial planners who provide or implement investment services or recommendations for their clients.Executive SummaryInvestors had a difficult year in 2022, and the professionals who advise them or act on their behalf had a lot to manage. As the world continued to recalibrate after the COVID-19 pandemic, FPA and the Journal of Financial Planning wondered where investment professionals were looking for opportunities for their clients. We asked respondents in the 2023 Trends in Investing survey to tell us about how they were using alternatives for their clients. We learned that while there is interest in these products, there are still significant concerns, namely their lack of liquidity and overall cost. What’s more, some planners indicated a general lack of trust in the ability of these products to meet clients’ needs.Meanwhile, over 90 percent of investment professionals said they use or recommend exchange-traded funds for their clients, and nearly half say they plan to increase their utilization over the next 12 months. Investment professionals are embracing a blend of active and passive strategies after a turn toward one or the other over the past couple of years. Although investment professionals are generally bearish in their economic outlooks, over 71% expressed some level of confidence in the traditional 60/40 portfolio’s ability to provide similar returns as it has historically. 32023 Trends in Investing Survey 20192023Exchange-traded funds (ETFs)88.0%90.1%Cash and equivalents79.9%76.4%Mutual funds (non-wrap)70.2%63.9%Individual stocks54.4%50.8%Individual bonds41.8%47.1%ESG (environmental/social/governance) funds25.5%34.6%Separately managed accounts26.1%33.0%Fixed annuities (immediate and/or deferred)22.6%30.9%Variable annuities (immediate and/or deferred)26.4%30.4%Mutual fund wrap program(s)32.4%26.7%Fixed permanent life insurance products24.4%25.7%Private equity funds12.3%23.0%Variable permanent life insurance14.0%22.5%Indexed annuities14.6%22.0%Structured products10.9%20.9%Other alternative investments (if bought directly, not included in other investment vehicles)13.2%17.3%Individually traded REITs (not held in mutual funds)20.3%16.8%Non-traded REITs13.2%16.8%Options9.2%11.5%Hedge funds (directly, not through mutual funds)8.0%10.5%Precious metals4.9%7.9%Other4.0%4.2%Cryptocurrencies0.3%2.6%Which investment vehicles do you currently use/recommend with your clientsInvestments Used42023 Trends in Investing SurveyETFs Top Today’s (and Tomorrow’s) InvestmentsThe survey asked respondents to identify all of the investments they are currently using with or recommending to their clients. Over 90 percent of investme...
