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Investor Sentiment

Purpose-built insights

Timely and actionable investor sentiment insights to strengthen your decision-making.

Investor Sentiment Index

Measuring risk sentiment amongst sophisticated investors.

The Addepar Investor Sentiment Index is a transactions-based index of high- and ultra-high-net-worth (U/HNW) investor sentiment derived from U.S. equity transactions captured on the Addepar platform.

Traditional investor sentiment readings are typically derived from survey results, which don’t always represent real investment choices. However, the Addepar Investor Sentiment Index is based on the anonymized and aggregated data of actual transactions and offers a more accurate view of investment activity.

The Addepar Investor Sentiment Index:

  • Provides a monthly reading of investors that are net buyers of U.S. equity securities versus those that are net sellers or net neutral
  • Measures stock market sentiment across 10,000+ investment portfolios, each valued at more $10 million in total assets
  • Offers a unique look into how sophisticated investors are thinking about their risk and adjusting their portfolios 
Download our white paper

Monthly Investor Sentiment Index

January 2021

December 2020

November 2020

October 2020

September 2020

August 2020

ISI Reading

The index is calculated as the relative share of individual investors that are net buyers of U.S. equity securities versus those that are net sellers or net neutral in a monthly time frame producing a reading between -100 and 100.  

Download January report

Download ISI time series

ISI Activity

The activity represents the index components such that “buying” - “selling” will net to the ISI. Dotted lines represent the historical average for each component.

*Historical average is April 2016 to present.

January 2021

Key Observations

  • Following bullish sentiment in November and December, the January ISI read is bearish at -5.0.
  • Driving the negative read is primarily a 7 point drop in buying activity which registers at 13.6.
  • Investors are rotating into Energy and Consumer Cyclicals and out of the Technology sector.
  • While the ISI and U.S. equities are generally negatively correlated, we see U.S. equities modestly sell-off in January coupled with a negative ISI read.

    • The Addepar Investor Sentiment Index is a transactions-based index of high- and ultra-high-net-worth (U/HNW) investor sentiment derived from U.S. equity transactions captured on the Addepar platform. We define U/HNW as portfolios valued at more $10 million in total assets. For more information, contact us at investor-sentiment@addepar.com.

    This report is prepared by and proprietary to Addepar. The Index is being circulated for informational and educational purposes only. Recipients should review their own investment needs and objectives before making any investment decisions. The information contained herein may not be copied or distributed; and is not warranted to be accurate, complete or timely. Neither Addepar nor its content providers are responsible for any damages or losses arising from any use of this information.

    ISI Reading

    The index is calculated as the relative share of individual investors that are net buyers of U.S. equity securities versus those that are net sellers or net neutral in a monthly time frame producing a reading between -100 and 100.  

    Download December report

    Download ISI time series

    ISI Activity

    The activity represents the index components such that “buying” - “selling” will net to the ISI. Dotted lines represent the historical average for each component.

    *Historical average is April 2016 to present.

    December 2020

    Key Observations

  • The 2.9 December ISI follows a positive November read which solidifies a trend towards "risk-on" sentiment after 7 months of bearish reads.
  • Driving the positive read was more than a 4 point increase in buying activity which registered at 20.2 this month.
  • Selling activity remains consistent with historical averages.
  • December activity is unseasonably low as many investors rebalance and tax-loss harvest portfolios during this time.
  • While the ISI and U.S. equities are generally negatively correlated, we see U.S. equities rally in December coupled with a positive ISI read.

    • The Addepar Investor Sentiment Index is a transactions-based index of high- and ultra-high-net-worth (U/HNW) investor sentiment derived from U.S. equity transactions captured on the Addepar platform. We define U/HNW as portfolios valued at more $10 million in total assets. For more information, contact us at investor-sentiment@addepar.com.

    This report is prepared by and proprietary to Addepar. The Index is being circulated for informational and educational purposes only. Recipients should review their own investment needs and objectives before making any investment decisions. The information contained herein may not be copied or distributed; and is not warranted to be accurate, complete or timely. Neither Addepar nor its content providers are responsible for any damages or losses arising from any use of this information.

    ISI Reading

    The index is calculated as the relative share of individual investors that are net buyers of U.S. equity securities versus those that are net sellers or net neutral in a monthly time frame producing a reading between -100 and 100.  

    Download November report

    Download ISI time series

    ISI Activity

    The activity represents the index components such that “buying” - “selling” will net to the ISI. Dotted lines represent the historical average for each component.

    *Historical average is April 2016 to present.

    November 2020

    Key Observations

  • The 1.2 November ISI is the first positive read since the start of the pandemic, potentially signalling a thematic shift to risk-on sentiment.
  • Driving the positive read was more than a 2 point increase in buying activity which registered at 16.3 this month.
  • Selling activity decreased very slightly registering 15.2 in November.
  • While the ISI and U.S. equities are generally negatively correlated, we see a market rally coupled with a positive read. Meanwhile, U.S. fund flows data continues to show outflows.

    • The Addepar Investor Sentiment Index is a transactions-based index of high- and ultra-high-net-worth (U/HNW) investor sentiment derived from U.S. equity transactions captured on the Addepar platform. We define U/HNW as portfolios valued at more $10 million in total assets. For more information, contact us at investor-sentiment@addepar.com.

    This report is prepared by and proprietary to Addepar. The Index is being circulated for informational and educational purposes only. Recipients should review their own investment needs and objectives before making any investment decisions. The information contained herein may not be copied or distributed; and is not warranted to be accurate, complete or timely. Neither Addepar nor its content providers are responsible for any damages or losses arising from any use of this information.

    ISI Reading

    The index is calculated as the relative share of individual investors that are net buyers of U.S. equity securities versus those that are net sellers or net neutral in a monthly time frame producing a reading between -100 and 100.  

    Download October report

    Download ISI time series

    ISI Activity

    The activity represents the index components such that “buying” - “selling” will net to the ISI. Dotted lines represent the historical average for each component.

    *Historical average is April 2016 to present.

    October 2020

    Key Observations

  • The October Investor Sentiment Index is modestly bearish with a read of -1.3, a near carbon copy of the previous month (-1.4).
  • Selling activity at 15.6 more than offset buying activity at 14.3 for this month's read.
  • Despite it being negative, the October read is the highest since March even as US Equity markets sold off in September and October.
  • Throughout the pandemic the sentiment index has been bearish (seven months in a row). However, early November data shows a surge in buying activity, potentially signaling the beginning of a shift to risk-on sentiment.

    • The Addepar Investor Sentiment Index is a transactions-based index of high- and ultra-high-net-worth (U/HNW) investor sentiment derived from U.S. equity transactions captured on the Addepar platform. We define U/HNW as portfolios valued at more $10 million in total assets. For more information, contact us at investor-sentiment@addepar.com.

    This report is prepared by and proprietary to Addepar. The Index is being circulated for informational and educational purposes only. Recipients should review their own investment needs and objectives before making any investment decisions. The information contained herein may not be copied or distributed; and is not warranted to be accurate, complete or timely. Neither Addepar nor its content providers are responsible for any damages or losses arising from any use of this information.

    ISI Reading

    The index is calculated as the relative share of individual investors that are net buyers of U.S. equity securities versus those that are net sellers or net neutral in a monthly time frame producing a reading between -100 and 100.  

    Download September report

    Download ISI time series

    ISI Activity

    The activity represents the index components such that “buying” - “selling” will net to the ISI. Dotted lines represent the historical average for each component.

    *Historical average is April 2016 to present.

    September 2020

    Key Observations

  • The September Investor Sentiment Index is modestly bearish with a read of -1.4. It increased by 4 points month over month and is the highest read since April as the market declined from recent highs.
  • Perhaps the sign of returning bullish sentiment, the 4 point increase can be attributed to buying activity which increased from 10.3 to 14.4. Meanwhile selling activity remains flat month over month.
  • Still, the index has been negative six months in a row, the most consecutive negative reads since we started tracking the index.
  • While the index and fund flows have not been historically correlated, US equity funds flow continue to move in the same direction as the index with both showing negative readings for September.

    • The Addepar Investor Sentiment Index is a transactions-based index of high- and ultra-high-net-worth (U/HNW) investor sentiment derived from U.S. equity transactions captured on the Addepar platform. We define U/HNW as portfolios valued at more $10 million in total assets. For more information, contact us at investor-sentiment@addepar.com.

    This report is prepared by and proprietary to Addepar. The Index is being circulated for informational and educational purposes only. Recipients should review their own investment needs and objectives before making any investment decisions. The information contained herein may not be copied or distributed; and is not warranted to be accurate, complete or timely. Neither Addepar nor its content providers are responsible for any damages or losses arising from any use of this information.

    ISI Reading

    The index is calculated as the relative share of individual investors that are net buyers of U.S. equity securities versus those that are net sellers or net neutral in a monthly time frame producing a reading between -100 and 100.  

    Download August report

    Download ISI time series

    ISI Activity

    The activity represents the index components such that “buying” - “selling” will net to the ISI. Dotted lines represent the historical average for each component.

    *Historical average is April 2016 to present.


    August 2020

    Key Observations

  • August continues to be an "instant replay" of previous pandemic months.
  • While the S&P 500 approaches its previous peak, the ISI continues to consistently show solid negative reads. There have now been 5 negative reads in a row, the most consecutive negative reads we've seen since tracking the index.
  • August buying activity (10.3) was depressed relative to the historical average, while selling activity (15.9) continued to be within the normal range. Said differently, on the margin investors are choosing to sit on the sidelines or sell over adding exposure.
  • While the ISI and fund flows have not been historically correlated, we note that U.S. equity fund flows data similarly shows consistent outflows since April. (Source: Morningstar and Lipper)

    • The Addepar Investor Sentiment Index is a transactions-based index of high- and ultra-high-net-worth (U/HNW) investor sentiment derived from U.S. equity transactions captured on the Addepar platform. We define U/HNW as portfolios valued at more $10 million in total assets. For more information, contact us at investor-sentiment@addepar.com.

    This report is prepared by and proprietary to Addepar. The Index is being circulated for informational and educational purposes only. Recipients should review their own investment needs and objectives before making any investment decisions. The information contained herein may not be copied or distributed; and is not warranted to be accurate, complete or timely. Neither Addepar nor its content providers are responsible for any damages or losses arising from any use of this information.

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    Resources

    Download our white paper to learn how we created the index

    Read our analysis of investor sentiment during Covid-19

    Watch our webinar: A closer look at the sentiment index

    Portfolio trading activity in the Addepar Investor Sentiment Index

    Investor Sentiment Index in the year of the pandemic

    Shifting sector views

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    Addepar is committed to the following governing principles when creating and publishing analytic content derived from data on the Addepar platform.

    Addepar adheres to leading industry data security and privacy practices. 

    All analyses are limited to the purpose of creation

    As a company that provides technology for the aggregation and management of financial data, we take the security and privacy of client information very seriously. In order to perform analyses on aggregated platform data, there must be a legitimate reason that results in a specific analytic product. 

    We protect the confidentiality of our clients and all investors on our platform.

    Protecting the information entrusted to us is our topmost priority. Our analytic products are built through three principal methodologies, (1) aggregation, (2) anonymization and (3) minimum sample sizes.

    We impose technical, administrative, and contractual measures to ensure that individual firms or investors are not identifiable through overrepresentation in any published analysis. All analyses are reviewed to assure there is no exposure of identifiable information, holdings, or actions of any individual firm or investor.

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