Wealthy Investors Want ETFs


Published November 02, 2012

| ETFguide

We know that wealthy individuals enjoy nice cars and homes, but where do they invest their money? 

An annual survey by Tiger 21 shows its members are favoring exchange-traded funds (ETFs) linked to major stock and bond benchmarks over stock picking. 

Tiger 21 is a group of 200 high net worth entrepreneurs. Members meet monthly throughout Canada and the U.S. to share investing ideas. To become a member, a minimum net worth of $10 million is required along with paying annual dues of $30,000.

The combined investable assets of the Tiger 21 club are around $19 billion.

According to the latest survey, here are the investments that members use:

43% favor individual stocks
23% favor index funds/ETFs
21% favor hedge funds
13% favor mutual funds

The typical Tiger 21 member has the following asset mix:

23% in real estate
22% in stocks
15% in private equity
13% in bonds and cash
10% in hedge funds
1% in commodities

At the end of September, there was $1.3 trillion in U.S. listed exchange-traded products. The SPDR S&P 500 ETF (SPY), SPDR Gold Shares (GLD), and Vanguard Total Bond Market ETF (BND) are among the largest ETFs by assets.

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