RIAs Reallocate Client Assets Amid Market Uncertainty

Strategic Insights -

Despite growing market skepticism, independent registered investment advisors (RIAs) remain optimistic about their own growth prospects. A recent survey by Interactive Brokers found that 42% of RIAs are investing more in non-US equities, while a similar amount (40%) are dialing back client exposure to US equities. This shift aligns with a growing bearish sentiment among advisors, with 62% reporting being more pessimistic compared to 12 months ago.

RIAs are increasingly focusing on global diversification, with 29% increasing fixed income investments, 28% investing more in commodities, and 27% increasing exposure to non-US currencies. Clients are also expressing anxiety about market volatility, with 52% citing its impact on their portfolios and 20% worrying about retirement. Despite this, 61% of RIAs are confident about their business growth this year, with 17% extremely confident.

Key Takeaways:

  • 42% of RIAs are investing more in non-US equities, while 40% are reducing exposure to US equities.
  • 62% of advisors report being more bearish in their outlook today compared to 12 months ago.
  • 52% of clients are most concerned about the impact of market volatility on their portfolios.
  • 20% of clients are most concerned about retirement.
  • 61% of RIAs are confident about their business growth this year, with 17% extremely confident.
  • 29% of RIAs are increasing fixed income investments.
  • 28% of RIAs are investing more in commodities.
  • 27% of RIAs are increasing exposure to non-US currencies.
  • 37% of RIAs are increasing cash holdings (US dollars).

Statistics:

  • 42% of RIAs are reallocating client assets to non-US equities.
  • 62% of advisors report a diminished outlook on US markets compared to 12 months ago.
  • 68% of advisors are either bearish (36%) or neutral (32%) on US markets.
  • 38% of advisors are bullish on global markets.
  • 11% of advisors are bearish on global markets.
  • 61% of RIAs are confident about their business growth this year.
  • 17% of RIAs are extremely confident about their business growth this year.
  • 29% of RIAs are increasing fixed income investments to 28%.
  • 28% of RIAs are investing more in commodities.

Sources:

  • Interactive Brokers (2025) - 2025 Interactive Brokers Advisor Insights Survey
  • Interactive Brokers Group (2025) - About the 2025 Interactive Brokers Advisor Insights Survey
  • Interactive Brokers Group (2025) - About Interactive Brokers Group, Inc.