Updating Numbers and Reinforcing Key Points

Executive Summary

U.S. capital markets are where investors, small and large, put capital to work to drive innovation, economic growth and job creation. Our markets have long enabled businesses to grow, governments to invest in infrastructure and individuals to save for retirement and education. The U.S. equity markets are the largest in the world and continue to be among the deepest, most liquid and most efficient, representing 45.3% of the $112 trillion global equity market cap, or $50.8 trillion. This is 4.1x the next largest market, China. U.S. market share has averaged 36.3% over the last 10 years, troughing at 29.8% in 2010 and peaking in 2020.

 

In this note, we walk through retirement account and stock ownership trends. Before we do, it is important to remind readers that the diversity across types of investment products and investment focus of these products (region, asset class, style, etc.) is part of what helps the U.S. capital markets maintain a dominant global position. Investors need choice in investment products, based on different return profiles and investment objectives. They need diversity within product sets and across investment focus of these products. The diversity, depth and breadth of U.S. equities markets (all of U.S. capital markets really) provide this opportunity and enable individual investors to manage their retirement and other savings accounts in a manner that fits their investment objectives and needs. (Please see SIFMA Insights: Who Owns Stocks in America for more details on this.)

In this note, we update data points on stock ownership and reinforce key points, the main one being individual investors own stocks.

Key Takeaways

• Private retirement accounts outweigh government funded, 65.2% of total retirement assets
• Retirement accounts built with mutual funds and stocks (IRAs 43.7% MFs; DC plans MF 52.1%, equity 23.2%)
• $21.3 trillion in mutual fund assets in 2019, 53% in equity funds
• Individuals own stocks: Federal Reserve data shows 52.6% Americans own stocks, Gallup poll indicates 55%

 

Author

Katie Kolchin, CFA
Director of Research
SIFMA Insights

Related Resources

• SIFMA Insights

  Who Owns Stocks in America? Individual Investors

  The original chartbook on stock ownership from SIFMA Insights (October 2019).

• SIFMA Insights

  US Equity Capital Formation and Listing Exchanges Primer

  Initial public offerings (IPOs) are an important way for businesses to grow, innovate and better serve their customers. Yet, the number of public companies has declined 46% since its peak in 1996. Why might that be? What can be done?

• SIFMA Insights

  US Equity Market Structure Primer

  Efficient and resilient market structure is key to sustaining investor confidence and participation underpinning the equity markets.

• SIFMA Research

  Research Quarterly: Equities, Fourth Quarter 2020

• SIFMA Research

  US Equity Issuance and Trading Volumes