Global X ETFs & SoFi Invest · GLOBAL X ETF s & SoFi INVEST: INVESTOR SURVEY Q1 2020 605 THIRD AVE...

Global X ETFs & SoFi InvestINVESTOR SURVEY Q1 2020

GLOBAL X ETFs & SoFi INVEST: INVESTOR SURVEY Q1 2020

Beyond Ordinary ETFsTM2

We surveyed investors at an interesting point in time:

Unemployment near multi-decade lows, with stocks at or

near all-time highs. Meanwhile, concern over COVID-19

had just barely entered the US public consciousness. Our

research captured the psyche of investors just a few short

weeks before markets were upended by volatility. While

few could have predicted the events that followed, the

responses tapped into broader truths that will resonate

beyond the Q1 2020 sell-o� :

• Investors generally had a positive outlook on the economy, but were split on how various

geopolitical factors (e.g., relations with China, 2020 elections) could infl uence their portfolio

• Investors indicated a likelihood to continue adding stock exposures, particularly US Large

Cap and Technology Sector stocks

• Despite optimism towards the economy and markets, investors were less bullish on their

personal fi nancial situations, including wage increases and ability to pay o� debt

• Responses suggested a potential overconfi dence, particularly among newer investors, likely

fueled by strong market returns in the preceding quarters. This takeaway looks prescient in

hindsight and supports the need for further fi nancial education as many investors experience

their fi rst bear market

• Familiarity with ETFs was low, furthering the case for greater fi nancial education

Global X ETFs and SoFi partnered to explore the factors that shape consumer investment

decisions. In support of these objectives, a 10-minute unbranded online survey was conducted

in December 2019, among 500 general population investors (i.e., 18 years or older with at

least one investment account).

BACKGROUND & KEY FINDINGS

Gen Pop Investors(ages 18+)

N=500


605 THIRD AVE43RD FLNEW YORK, NY 10158

1 (888) 493-8631GLOBALXETFS.COM@GLOBALXETFS

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• More than half (54%) of respondents were optimistic about the economy,

compared to just 11% who reported being pessimistic

• Almost 3/4s (74%) of respondents expected the economy would

grow at a similar or faster pace in 2020 compared to 2019

54% 33% 11% 3%

Optimistic

ATTITUDE TOWARD ECONOMY

Neutral Pessimistic No Opinion

27% 47% 21% 5%

Accelerate

2020 ECONOMIC PERFORMANCE

Grow at Similar Pace Decelerate Recession

Q1. Overall, how would you characterize your attitude towards the US economy?Q2. How do you think the US economy will perform in 2020?Base: Gen Pop (N=500)

Investors Were Optimistic About The Economy As Recently As December



• Nearly half of investors expressed preference for US Large Cap

stocks or high growth Technology Sector stocks, likely infl uenced

by their strong recent performance

• Thematically, investor’s top interests were sustainable investments

and companies involved in robotics & AI and cannabis companies

BROAD ASSET CLASS PREFERENCES

Large companiesin the US Sustainable investing

Robotics and ArtificialIntelligence companies

Cannabis companies

Autonomous and ElectricVehicle companies

Cybersecurity companies

Video Games andEsports companies

FinTech companies

High growthtechnology stocks

Large companiesaround the world

Fixed income securitiesissued by govs and corps

outside of the US

Bonds fromUS companies

Large companies indeveloping countries

THEMATIC PREFERENCES

24%

23%

11%

14%

14%

14%

22%

17%

17%

14%

8%

12%

11%

Q29. Which of the following ETFs would you be most likely to invest in? Q30. Which of the following investment themes are you most likely to invest in?

Investors Were Looking to US and Tech Exposure While Markets Were Near All-Time Highs




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Q8. How would you characterize your wealth status? Q9. Compared to your friends or peers, which of the following most closely represents how you feel about your wealth status? Q10. On a monthly basis, do you fi nd you are spending:Q11. Compared to your job-related income in 2019, do you believe that your job-related income in 2020 will be: Base: Gen Pop (N=500)

PERCEIVED WEALTH STATUS

Middle Class 52% Upper Middle Class / Wealthy 32%16%

INCOME - PEER COMPARISON

More Money 36% Similar Amount of Money 51%

Less Money

13%

PERCEIVED INCOME INCREASE IN 2020

A Bit More 36%A Lot More 17% About the Same 40%

A Bit Less

A Lot Less

4% 2%%

Lower / Working ClassLower / Working Class

SPENDING - PEER COMPARISON

Close to What You Make 26%A Lot More 13% Slightly Less 28% A Lot Less 1515%%Slightly More 17%

• About half viewed themselves as being middle class and having

incomes comparable to their peers

• Nearly half (46%) did not expect a raise in 2020

Investors Had Been Feeling Less Confident in Their Personal Financial Situations



Q14. What types of debt, if any, do you currently have? Q15. Approximately how much debt do you have for each of the following? Q16. How soon do you expect the debt to be paid o� ? Base: Gen Pop (N=500) *Base have some form of debt

PREVALENCE OF DEBTAMONG POPULATION

LENGTH OF PAYMENT

49%

Credit Card

33%

Auto Car Loan

17%

StudentLoan

57%

32%

16% 29% 19% 21% 10% 6%

43% 21%

24% 4%

2%

2%

12%

2%

3%

AVG. AMOUNTOF DEBT*

$3.3K(n=245)

$8.3K(n=150)

$8.3K(n=150)

NextYear

Next3 Years

Next5 Years

> Than 10 Years

Next 10 Years

Never

• Nearly half (49%) of those surveyed were carrying high interest

credit card debt, and 43% expected their debt to carry over

beyond 2020

• 37% of those with student loan debt expected it to take more than

10 years to pay o� their debt

Debt Burden May Fuel PersonalWealth Concerns




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• Investors with less than one year of experience were most likely

to report being aggressive investors, picking individual stocks and

spending less than one hour researching their investments

• By contrast, the majority of investors with more than 20 years

of experience reported being patient, using ETFs, and spending

more than two hours researching their investments before trading

Q19. Which best describes your attitude towards investing? Q20. When making an investment, how long do you spend analyzing or researching ideas? Q26. Which statement most closely resembles your investment approach?Base: Gen Pop < 1 Year (n=140), 20+ Years (n=96). All Investors: Base: Gen Pop (N=500)

Inexperienced Investors Are at the Greatest Risk of Making Financial Mistakes

INVESTING TENURE

< 1 Year 20+ Years All Investors

I am an aggressive investor, comfortable with risk and trading regularly 46% 16% 27%

I am a patient investor. When I make an investment, I hold on to it for a very long time 39% 67% 56%

I am a cautious investor, hesitant to make investments or trade 15% 18% 17%


I pick individual stocks 53% 37% 42%

I invest in very broad stock funds or ETFs 37% 50% 46%

I invest in more narrow stock funds or ETFs 10% 14% 11%


3+ hours 14% 34% 24%

2-3 hours 31% 18% 32%

An hour or less 50% 29% 35%

None 5% 19% 8%



Q17. Approximately, how long ago did you start investing? Q18. How confi dent are you when it comes to investing? Base: Gen Pop (N=500)Q19. Approximately, how long ago did you start investing?

19% 28% 42% 9% 2%

INVESTING CONFIDENCE

INVESTING TENURE

19% 28% 24% 28%

Extremely Confident Very Confident Somewhat Confident Not Very Confident Not At All Confident

Over 20 Years 5-20 Years 1-5 Years Less Than 1 Year

• Overconfi dence is the largest concern. While over half of investors

had been participating in the markets for less than 5 years, 47%

were very or extremely confi dent, and nearly 9 in 10 were at least

somewhat confi dent – likely a result of the strong recent performance

across asset classes

• Investors with less experience demonstrated even higher confi dence

and less pessimism than those with more experience, possibly

because they had not experienced a bear market environment

The Need For Greater FinancialEducation is Clear




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• 37% of investors who were extremely or very confi dent had been

investing for less than 1 year, nearly double the percentage of

those who had been investing for 20+ years

• Investors with 20+ years of experience were more than twice as

likely to be pessimistic about the economy than those with less

than 1 year of experience

INVESTOR EXPERIENCE

INVESTING CONFIDENCE ATTITUDE TOWARDS ECONOMY

Extremely/Very

SomewhatNot Very/ Not

At AllOptimistic Neutral Pessimistic

< 1 Year 37% 21% 18% 27% 35% 11%

1-5 Years 19% 21% 28% 20% 26% 38%

5-20 Years 24% 30% 40% 33% 23% 29%

20+ Years 20% 20% 14% 21% 16% 23%



• With approximately $4 trillion in assets under management, ETFs

are becoming an important part of the fi nancial landscape, o� ering

potential for e� cient, diversifi ed exposure to certain asset classes,

geographies and strategies

• Despite their popularity, half of investors reported having a limited

understanding of ETFs

• Younger, male, and wealthier investors claim greater expertise and

familiarity with ETFs, demonstrating the need for more inclusivity

when it comes to fi nancial education

Q28. How knowledgeable would you say you are about ETFs?Base Gen Pop: Male (n=290), Female (n=168): Millennial (n=207), Gen X (n=111), Baby Boomer (n=133). <$50k (n=174), $50k-$99k (n=206), >$100k (n=117).

ETF Education Needs to Expand, Become More Inclusive

ETFKNOWLEDGE

GENDER GENERATION INCOME BRACKET

Male Female Millennial Gen XBaby

BoomersSwing

Under $50K

$50K - $99K

Over - $100K

Expert 13% 8% 16% 12% 3% - 10% 7% 22%

Familiar 46% 30% 44% 46% 34% 32% 33% 47% 39%

Aware 36% 45% 32% 34% 54% 46% 45% 39% 30%

Not Aware 5% 16% 8% 8% 9% 23% 13% 7% 9%




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• Building confi dence within one’s personal fi nancial situation should take precedent

over investing. Budgeting appropriately, paying down debt, and establishing emergency

funds are important steps before investing.

• As observed in Q1 2020, unpredictable ‘black swan’ events can change economic

realities quickly. Investors should remain diversified across asset classes and

geographies to mitigate these risks, which can often be achieved by using ETFs.

• Don’t let recent market performance infl uence decisions: Neither the exuberance of

late-2019 nor the intense bearishness of early-2020 are typical, and historical patterns

rarely repeat themselves. Over the long run, successful investing favors patience,

careful research, and diversifi cation over concentrated, aggressive, or impulsive trading.

• Financial education is a lifelong pursuit, that involves understanding one’s changing

personal fi nancial situation, the investment options available, and the broader

investment climate. Consuming educational materials from reputable sources should

remain a priority.

INVESTOR TIPS BASED ON SURVEY FINDINGS

GLOBAL X ETFs & SoFi INVEST: INVESTOR SURVEY Q1 2020 INVEST: INVEST: GLOBAL X ETFGLOBAL X ETF INVESTOR SURVEYINVESTOR SURVEY Q1 2020 Q1 2020GLOBAL X ETFGLOBAL X ETF

NOTES




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SEI Investments Distribution Co. (1 Freedom Valley Drive, Oaks, PA, 19456) is the distributor for the Global X Funds.

Investing involves risk, including the possible loss of principal. Diversifi cation does not ensure a profi t or guarantee against a loss. This information is not intended to be individual or personalized investment or tax advice and should not be used for trading purposes. Please consult a fi nancial advisor or tax professional for more information regarding your investment and/or tax situation.



Beyond Ordinary ETFsTM

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