The BlackRock Foundation and Commonwealth have launched a new research initiative called "The Investor Diaries" to explore the experiences of first-time investors who entered the U.S. retail capital markets since 2020. This effort is supported by a $1 million grant from The BlackRock Foundation.
"The Investor Diaries" aims to understand the financial circumstances, motivations, behaviors, and needs of these new investors, particularly those with low to moderate incomes (LMI). By using voice diary entries, national surveys, and transaction data analysis, the project seeks to provide insights into how capital market investing impacts LMI households' financial wellness.
Between 2020 and 2021, individual investors in the U.S. opened 46 million new brokerage accounts—a significant increase of 80% over two years. More than three-quarters of these investors remain active today.
Commonwealth has partnered with investment platforms Betterment and moomoo for this research. Betterment provides automated investment technology for those who prefer not to select their own stocks, while moomoo offers tools for self-directed investors at all levels.
Timothy Flacke, CEO of Commonwealth, stated that "The Investor Diaries will provide a groundbreaking holistic view of those living on modest incomes who are new to investing in the past five years." He emphasized that understanding these investors' choices will help improve investing platforms and tools.
Claire Chamberlain, President of The BlackRock Foundation, noted that "Measuring household investing behavior will help determine how supported these new market participants feel in their investing experience."
For further details about "The Investor Diaries," interested parties can visit https://buildcommonwealth.org/research/investordiaries