NEW YORK, July 11, 2018 /PRNewswire/ -- As technology continues to transform the way we live our lives day to day, a new survey suggests that tech and social media have a larger impact on investment decisions than one might think, particularly for those with a financial advisor. Global X Funds, the New York-based provider of exchange-traded funds (ETFs), released today the results of its third annual survey of affluent investorsi, "Disruptive Technologies: In Life & Portfolios," which shows that having an advisor plays an outsize role in indicating how affluent investors invest in and use new technology, use social media to make investment decisions, and stay informed on the markets.
According to the survey, more than twice as many affluent investors (34%) who work with a financial advisor are influenced by market information on social media versus 16% of investors without a financial advisor. The survey also found those with an advisor reported being much more likely to use mobile apps (51%), social media (47%), and smart home devices (e.g., Google Home, Alexa) (39%) on a weekly basis to stay informed about the market. Significantly fewer of their self-directed peers use mobile apps (32%), social media (26%), or smart homes (12%) to stay informed. Those with an advisor were also over two and a half times (26%) as likely to be the first to use a new technology, compared with investors (10%) who do not use an advisor.
"This year's survey demonstrates that investors with a financial advisor are often earlier adopters of new innovations," said Jay Jacobs, Director of Research at Global X. "The modern investor is tuned into the markets and more likely to complement advice from a professional advisor with information from a variety of sources."
Investing according to one's beliefs, otherwise known as values-based investing, also showed a divide in the two camps. Those who invest with a financial advisor reported higher levels of interest in adopting investment strategies that align with their beliefs at 80%, compared to 66% of their self-directed peers. Close to half (48%) were also willing to pay more for investment strategies that align with their beliefs; only one third (34%) of those without an advisor were willing to pay a higher fee to align their portfolio with their values.
Surprisingly, investing in technology and using technology are often at odds, whether or not one has an advisor. Ninety percent of affluent investors report using some kind of technology on a weekly basis, but the majority do not use it to influence their investment decisions at all, or even as a means to stay informed on the market. Furthermore, even though nine out of ten affluent investors report using technology frequently, when it comes to investing in the sector, that number drops to 73%. This contrast is most stark with social media investments, where 70% of affluent investors admit to being active users, but only 28% are invested in social media companies.
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i 1,001 investors were surveyed in the following breakdown: 200 investors with $100,000-249,999, 200 investors with $250,000-499,999, 201 investors with $500,000-$999,999, 200 investors with $1,000,000-4,999,999, and 200 investors with more than $5,000,000