Here’s an update and upgrade to our mid-2011 post.

Lots of noise and imperfections in the Fed’s Flow of Funds data but sure beats the alternative – nothing.  The biggest caveat, in our opinion, is the data include holdings of foreign equities by U.S. residents so not a concise measure on how the U.S. stock market is allocated.   Also note the household sector includes hedge funds and IRAs.

The table below illustrates a large decline in the percentage of the equity market allocated to private pension funds.  No doubt there’s noise here and it may also be partially explained by demographics but the decline over the past twenty years is glaring.

The data also show the growth of mutual funds and ETFs since 1990 as households have reduced holdings of individual stocks and increased allocation into these sectors.

 

Jan9_Equity Holders1

Jan9_Equity Holders2(click here if chart and tables are not observable)

Category: Think Tank

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

3 Responses to “Who Owns the U.S. Equity Market?”

  1. denim says:

    I just love the “household” sector definition for here.
    https://macromon.wordpress.com/2011/06/21/who-owns-the-u-s-equity-market/

    “Our good friend, Charles Biderman of TrimTabs, does point out that the household sector includes
    “among other things, hedge funds, endowments, non-profit organizations, and direct purchases of equities by investors.” Furthermore, according to the Federal Reserve,
    …In other words, the FFA starts with known economy wide totals for individual transaction categories and then amounts reported to be held by other sectors are deducted, leaving the household sector with the remainder.

  2. boveri says:

    Relevant input by denim. Disappointing also that IRA, Roth and other tax-deferred vehicles are not broken out.

  3. [...] Who owns the US equity market? (1990-2012) | Global Macro Monitor Ownership of $25.8T in US stocks & foreign ADRs by entity (households, mutual funds, ETFs, pensions, insurance cos, closed end funds, government, etc.). Shows decline in household’s share, which includes 401ks & hedge funds, with their reallocation into ETFs. [...]