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RIA Clients’ Appetite for Hedge Funds Falls in Favor of ESG and Cannabis Investing

January 10, 2019

Among wealth management clients, hedge funds and private equity are out while environmental, social and governance investing as well as cannabis stocks are in, according to a recent survey.

Fifty-five percent of RIA firms say their clients are interested in socially responsible or ESG investing, according to a recent TD Ameritrade Institutional survey cited by the Wall Street Journal.

Meanwhile, 48% of RIAs say some of their clients have asked about cannabis-related equities, although the majority of advisors say their clients aren’t interested, the paper writes, citing the survey of 302 RIAs conducted from Nov. 27 to Dec. 13, 2018.

Media attention over the course of 2018 may have had something to do with this interest, TD Ameritrade said, according to the Journal.

And despite many traditional wealth management firms steering clear of cryptocurrencies for now, 15% of respondents to TD Ameritrade’s survey say their clients are interested in the product, the paper writes.

Interest in hedge funds and private equity has dropped, the survey found, according to the Journal.

By Alex Padalka
  • To read the Wall Street Journal article cited in this story, click here.