Americans can invest in the capital markets to grow wealth
The U.S. capital markets are where people – individually and collectively through pension funds and mutual funds – invest their savings to seek a return. By putting their capital to work in our markets, they invest in companies that drive innovation, state and local infrastructure, and more.
These investments grow U.S. household wealth and fuel economic growth and job creation.
“Between 2009 and 2023, net household wealth increased by 151% in the US, compared with only 55% in the euro area.
This gap largely reflects the greater capacity of the US financial system to transform household savings into high-yielding investments, partly owing to the greater depth and efficiency of the US capital market.”
– A 2024 Competitiveness Report by the European Commission
Who’s invested? Here’s the retail investing landscape
Let’s take a moment to look at the retail investing market landscape. Where are American families putting their funds?
According to the latest Federal Reserve survey, 58.0% of households own equities, a critical tool to build wealth.
In 2023, the value of U.S. households’ liquid financial assets increased 13.3% Y/Y to $66.4 trillion.
The total value of U.S. retirement assets increased 9.0% Y/Y to $44.8 trillion in 2023. Total private pension assets (defined benefit and contribution plans) were $12.9 trillion, +10.3% Y/Y, and assets held in individual retirement accounts (IRAs) increased 13.4% Y/Y to $13.6 trillion.
Liquid Financial Assets Held by US Households:
- Equities 47.6%
- Mutual funds 16.5%
- Bonds (UST, agency, munis, and corporates) 8.6%
- Money market funds 6.0%
- Deposits (bank deposits and CDs) 21.3%