Wealthy Investors Want ETFs


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.

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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 stocks23% favor index funds/ETFs21% favor hedge funds13% favor mutual funds

The typical Tiger 21 member has the following asset mix:

23% in real estate22% in stocks15% in private equity13% in bonds and cash10% in hedge funds1% 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 (NYSEARCA:GLD), and Vanguard Total Bond Market ETF (NYSEARCA:BND) are among the largest ETFs by assets.

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