Investor Sentiment

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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 Read our analysis of the investor sentiment during Covid-19

Monthly Investor Sentiment Index

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 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 funds flow 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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