Transforming Investor Identity
A National Pilot Project by Commonwealth
Supported by the Nasdaq Foundation, we aim to shift perceptions of investor identity. This report and actionable toolkit highlight the findings of a year-long pilot program focused on how to develop an investor identity amongst Black and Latinx communities, attracting new investors to capital markets and unlocking the wealth-building opportunities they provide.
Jailan Griffiths, President of the Nasdaq Foundation and Global Head of Purpose"What’s so exciting and compelling about this research is the insight it reveals: investor identity is not fixed, but flexible. It can grow and be built over time with the right support and education. That means there’s a real opportunity here to inspire a new generation of investors who will help shape the future of the financial markets."
Commonwealth's earlier investing research identified investor identity as one of the four primary barriers to participation in capital markets by women living on Low to Medium Income (LMI).
Learn About Prior ResearchElements of Investor Identity
Development of an investor identity can allow new investors to fully take advantage of the wealth-building opportunities afforded by retail investing by overcoming initial feelings of doubt, discomfort or not belonging.
Belonging
The feeling of alignment between self-perception and environment.
Connection
Interacting with others in a way that makes the sense of being part of a community concrete.
Learning
The growing ability to make sense of investing.
Agency
Feeling a sense of control over outcomes, including calculated risks.
Confidence
Trust in one’s own ability to make good investing decisions.
Participant Overview
863
participants, primarily Black and Latinx women with household incomes ranging from $30,000 to $80,000
$150
in seed funding, provided to each participant to invest
1 YR+
investing via Ellevest, Public or Stash, as one of our field test investing platform partners
Participant Demographics
We gathered data on participants’ investing experience through surveys, interviews, and user data provided by their respective platforms.
Research Participant Spotlights
“I'm still in that process of learning, but it's good learning because I'm taking my time and I know, in the next couple of months, I know when I put more money in there, I know where I'm going.”
“Some of these people are first time learners like myself and I like that. That encourages me to read [other peoples’ comments] every day. Normally I’ll go into my app and read the comments, from different people. That right there, it just keeps me going.”
“The more information you have, the less scary it is. Now my comfort level is well beyond what I thought it would ever be.”