Investors can take cues from American millionaires, as many wealthy participants expect to put more money into the stock market.
In a recent CNBC Millionaire’s survey of 514 individuals with over $1 million in assets, millionaires plan to put 46% of their investment wealth into equities, followed by 21% into fixed-income and 14% into short-term cash instruments, reports Robert Frank for CNBC.
America’s wealthy can have a large influence on the markets, with the top 10% of Americans holding over 80% of stocks.
Investors can access broad stock market indices through ETFs. For instance, the SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) provides exposure to Dow bluechips, SPDR S&P 500 (NYSEArca: SPY) reflects the S&P 500 index and PowerShares QQQ (NasdaqGS: QQQ) tracks the Nasdaq-100. [Broad Market ETF Ideas for Dealing With May’s Doldrums]
Looking into the equities markets, 22% of surveyed millionaires with $5 million in assets or more are bullish on tech names.
ETF investors can access broad technology sectors through the Technology Select Sector SPDR (NYSEArca: XLK), the largest U.S. technology ETF. XLK has a 0.16% expense ratio. Additionally, other options include the Vanguard Information Technology (NYSEArca: VGT), which has a 0.14% expense ratio, and iShares U.S. Technology ETF (NYSEArca: IYW), which has a 0.46% expense ratio. [Stick With High Quality Over Momo ETFs]
Moreover, millionaires with less than $5 million in assets are more bullish on health care names, with 15% of those surveyed pointing to this sector as their top pick.
For health care sector exposure, ETF investors can take a look at sector plays like the Health Care Select Sector SPDR (NYSEArca: XLV), which has a 0.16% expense ratio; iShares U.S. Healthcare ETF (NYSEArca: IYH), which has a 0.46% expense ratio; and Vanguard Health Care ETF (NYSEArca: VHT), which has a 0.14% expense ratio. [Identifying Key Differences Among Sector ETFs]
While millionaires are more bullish on stocks, the group remain cautious on the overall economy. Of the survey respondents, 43% expect the economy to end flat this year, 42% believe it will expand and 12% anticipate a contraction.
For more information on market sectors, visit our sector ETFs category.
Max Chen contributed to this article.