There are nearly 14 million high net worth individuals in the world today. These are investors with at least $1 million in investable assets and collectively have nearly $53 trillion in wealth. The US wealth market is nearly $11 trillion in size and served by multiple providers. Registered Investment Advisors (RIA) serve nearly 12% of this market. According to a report by Intuition, there are around 466 thousand financial advisers in the US and many of these are over the age of 55.
Insider Monkey has put together a list of 20 stocks that financial advisers most search for. The data is obtained from TrackStar which is the official newsletter of Intuition. Intuition, a division of InvestingChannel, is a global research, education, technology and creative solutions company that invests in intelligence to make the art of human-driven communication and decision-making more intuitive for both Financial Advisors and Financial Services Marketers. Many of the companies on the list are tech giants that have delivered strong returns this year. Other companies on the list are Goliaths in future growth areas such as biotech. Even more companies are tried-and-true dividend stocks. Given that financial advisers manage trillions of dollars on behalf of their clients and their preferences may affect stock prices, let’s take a closer look at their most searched picks.
#20 Procter & Gamble Co (NYSE:PG)
Financial Advisors are interested in this stock because of its dividend yield. With a forward P/E of 17.86 and dividend yield of 3.49%, Procter & Gamble Co (NYSE:PG) is a good core holding for any dividend investor. Procter & Gamble Co (NYSE:PG) has many world-leading billion dollar brands, a wide moat, and is a dividend aristocrat, having increased the dividend payout for at least 25 years. Although shares are down 13.88% year-to-date because of the strong dollar and higher costs, management is cutting costs and anticipates organic sales for the fiscal year of 2016 to be in-line to up to low single digit percentage points above that of fiscal year 2015.
#19 iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT)
Given bonds typically make up 60% of a balance portfolio, it’s not surprising that many financial advisers searched for the iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT). Given the U.S. government can print dollars to pay its debts, U.S. Treasury bonds are still the gold standard among bonds. Shares of iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT) have had a wild year as investors rushed into the security for safety during August’s bout of volatility but headed for the exits as the Federal Reserve begins to normalize interest rates.
#18 iShares NASDAQ Biotechnology Index (ETF) (NASDAQ:IBB)
Given the recent knowledge and cost breakthroughs in biotechnology, many savvy investors feel the human race is on the cusp of multiple earth-shattering discoveries that will prolong the life and improve the quality of living for hundreds of millions of people around the world. Those investors feel the subsequent improvements will mint several biotech equivalents of Amazon and Google, along with hundreds of companies that will deliver market-beating value for their shareholders. Given that many of the promising biotech stocks are included in the index, the iShares NASDAQ Biotechnology Index (ETF) (NASDAQ:IBB) is the 2010’s version of the late 90’s NASDAQ index.
#17 Bank of America Corp (NYSE:BAC)
Bank of America Corp (NYSE:BAC) has come a long way from the Great Recession. Because of CEO Brain Moynihan’s attention to cost cutting and previous legal settlements, Bank of America Corp (NYSE:BAC)’s expenses and legal fees are markedly lower than before, providing shareholders with higher earnings per share. Bank of America shares are also cheap, with a price-to-book ratio of 0.79 and price-to-tangible book of 1.12. Shares should rally as interest rates normalize and the economy continues to improve.