Who Owns the U.S. Equity Market?

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 is a residual calculation, which includes nonprofits, hedge funds and IRAs, among other noise.

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 their allocation to these sectors.

Jan9_Equity Holders1

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

About these ads
This entry was posted in Equities and tagged , , , , . Bookmark the permalink.

5 Responses to Who Owns the U.S. Equity Market?

  1. If I’m not mistaken, households also counts all non-profits – eg charitable foundations, schools (eg endowments), etc.? http://www.federalreserve.gov/apps/fof/TableDesc.aspx?t=L.100

  2. Pingback: Thursday links: tapped out theses - Abnormal Returns | Abnormal Returns

  3. Pingback: The Tim Geithner Legacy Project | Felix Salmon

  4. The Wolf says:

    A reblogué ceci sur le blog a lupus…un regard hagard sur l'écocomics et ses finances…. and commented:
    Add your thoughts here… (optional)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s