Black and Hispanic Americans Prefer to Take More Control Over Their Investments and are Driven by Purpose, New J.P. Morgan Wealth Management Study Finds

Majority of investors say they’re hanging tough amidst challenging markets

Black and Hispanic Americans prefer to have more control over their investments and care more about the social impact of companies they are investing in, according to new research from J.P. Morgan Wealth Management. J.P. Morgan surveyed more than 2,000 Americans this year to understand what motivates – or prevents – them from getting invested.

“Investing is part heart and part science,” said Kristin Lemkau, CEO of J.P. Morgan Wealth Management. “It’s important to know what matters most to a client as we empower them to invest, help grow their wealth and keep them on track to reach their goals.”

Here are four key takeaways from The J.P. Morgan Wealth Management Diverse Investor Study:

1. Most Black and Hispanic Americans prefer to have more control over their investments

• 59% of Black Americans and 57% of Hispanic Americans want to take an active role in selecting the stocks, bonds or funds that make up their investment portfolio, compared to 46% of White Americans

2. Black and Hispanic Americans care more about the social impact of the companies they’re investing in

Black and Hispanic Americans say it’s important that their investments:

• are Black, Indigenous and People of Color (BIPOC)-owned, started, and/or operated (70% and 46%, compared to 27% of White and 31% of Asian),
• have a positive environmental impact (72% for both Black and Hispanic, compared to 55% of White and 57% of Asian),
• are women-owned, started, and/or operated (60% and 48%, compared to 30% of White and 40% of Asian),
• promote gender and racial equity and diversity (66% and 54%, compared to 35% of White and 42% of Asian)

“Our goal is to help close the racial wealth gap and help all members of the communities we serve have access to the resources they need to build generational wealth,” said David Miree, Global Head of Diversity, Equity & Inclusion at JPMorgan Chase. “When more people have a fair shot at opportunity, our economy and communities are stronger.”

3. Despite volatility and uncertainty, most investors are not concerned about market decline

Overall, the majority of investors:

• are concerned about rising inflation and interest rates (88%)
• would not be concerned about a 20% dip in their portfolio (69%)
• automate their investments on a regular basis (58%)

4. Women are optimistic about their financial situation, but take a more cautious approach than men

• 59% of women say their financial situation is better now than it was five years ago, compared to 62% of men
• 45% of women describe their investing strategy as cautious, compared to 33% of men
• 23% of women have created a will, compared to 17% of men

“We love to see all people, but under-represented investors in particular, feeling more confident about their finances, and we want to keep that momentum rolling," said Jeanne Sun, General Manager of Inclusive Investing at J.P. Morgan Wealth Management. “It’s why we created our Women and Investing resource hub and continue to host in-person educational seminars across the country. It’s all part of empowering women and diverse investors to build wealth by helping them cut through the noise and make decisions that fit their lives.”

To learn more about the J.P. Morgan Wealth Management Diverse Investor Study findings, visit: https://www.chase.com/personal/investments/learning-and-insights/article/inclusive-investing-study

Methodology

The J.P. Morgan Wealth Management Diverse Investor Study was conducted April 26 – May 9, 2022. The results are based on a nationally representative sample of 2,014 general population American adults aged 25 to 64 with investable assets, including oversamples for both Black and Hispanic Americans (692 White respondents, 594 Black respondents, 624 Hispanic respondents, and 58 Asian respondents). Respondents were interviewed online in English and Spanish. J.P. Morgan Wealth Management was not identified as the survey sponsor.

About J.P. Morgan Wealth Management

J.P. Morgan Wealth Management is the U.S. wealth management business of JPMorgan Chase & Co., a leading global financial services firm with assets of $3.8 trillion and operations worldwide. J.P. Morgan Wealth Management has ~5,000 advisors and ~$630 billion of assets under supervision. Clients can choose how and where they want to invest. They can do it digitally, remotely, or in person by meeting with an advisor in one of our 4,700 Chase branches throughout the U.S., or in one of our 21 offices. For more information, go to www.jpmorganwealthmanagement.com and follow @JPMWealth on Twitter.

J.P. Morgan Wealth Management is a business of JPMorgan Chase & Co., which offers investment products and services through J.P. Morgan Securities LLC (JPMS), a registered broker-dealer and investment advisor, member FINRA and SIPC. Annuities are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. Certain custody and other services are provided by JPMorgan Chase Bank, N.A. (JPMCB). JPMS, CIA and JPMCB are affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states.

© 2022 JPMorgan Chase & Co.

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