According to the redesigned J.D. Power 2025 U.S. Investor Satisfaction Study, younger, value-conscious do-it-yourself (DIY) investors who were supposed to drive the transformation of the industry are actively seeking the guidance of live professional advisors in an increasingly uncertain economy.
“For younger generations of investors who’ve been exposed to digital, human and hybrid forms of investment advice during the past several years, the decision to lean into DIY or advised channels is rarely ever an either/or scenario,” said Kapil Vora, senior director of wealth intelligence at J.D. Power. “Increasingly, investors are using several approaches, and many younger investors who would traditionally have fallen into the DIY category are actively looking to work with human advisors. However, it is no longer enough to have a brand legacy or an array of products and services; a company must deliver value and make the experience easy for investors.”
Following are some key findings of the redesigned 2025 study:
Younger DIY investors seek advisors: 27% of DIY investors say they are likely to use a financial advisor in the next 12 months. The percentage of DIY investors seeking advisory relationships is highest among members of Gen Y and Gen Z (37%), and lowest among those in the Gen X, Boomer and Pre-Boomer generations (21%).
“We anticipate these percentages would be even higher across all generations since the close of fielding for this study, given the economic shifts of the past several weeks,” Vora said.
Simplicity and enjoyment are top reasons for keeping DIY accounts: Among investors with DIY investment accounts, the primary reasons for maintaining those accounts are that their finances and investments are simple enough to manage on their own (41%) and that they enjoy managing their investments/finances (41%).
Traditional wealth management firms missing out on attracting younger investors: While interest in advisory services is high among younger investors, traditional wealth management firms are disproportionately skewed toward older investors. The percentage of investors younger than age 40 is just 11% at traditional wealth management firms vs. 20% at retirement/discount brokerage firms; 26% at banks; and 42% at fintech firms.
Ease of doing business is critical: When it comes to the individual dimensions that drive investor satisfaction with wealth management firms, ease of doing business is one of the most critical criteria and ranks just below trust; products and services; and people as the foundation for a positive investor experience.
Raymond James ranks highest in overall satisfaction among advised investors, with a score of 748 (on a 1000-point scale). U.S. Bank (738) ranks second and Edward Jones (734) ranks third.
Vanguard ranks highest in overall satisfaction among DIY investors, with a score of 704. Fidelity (703) ranks second and T. Rowe Price (691) ranks third.
