By David Wignall

America's financial advisors are losing confidence in U.S. equities and are reallocating assets abroad, according to survey results released this week by Interactive Brokers. The survey, which was conducted in April, paints a picture of a wealth management industry scrambling to adjust to heightened market volatility and tariff uncertainty.

According to the survey, 40% of independent advisors reported that they were paring back their clients' exposure to domestic equities. A similar fraction (42%) said they were boosting their clients' exposure outside the United States. Nearly half of respondents named either tariffs or changing U.S. policy as their top concern. The survey included responses from 113 fee-based financial advisors with an average of $56 million of client assets under management.

As some advisors dial back their stakes in U.S. equities, many are also leaning into other asset classes. Nearly 40% said they were increasing their holdings of U.S. cash, 28% said they were raising their exposure to non-U.S. currencies, 29% said they were growing their positions in fixed income, and 22% said they were increasing their stakes in cryptocurrencies.

Overall, 62% of advisors reported that they were more bearish in their outlook today, compared with a year ago.

"There's a general nervousness from everybody about what's going to happen next," says Steve Sanders, executive vice president of marketing and product development at Interactive Brokers.

The Interactive Brokers survey adds to a growing body of evidence that suggests wealth managers are souring on U.S. equities. Barron's latest Big Money poll, mailed out in late March with supplementary tariff-related questions added in April, found professional investors to be more pessimistic than at any point in nearly 30 years. Many investors reported that they are shifting their portfolios away from U.S. equities, seeking to diversify their returns through investments in foreign markets, fixed income, and alternative assets.

Interactive Brokers, which operates a trading platform used by individuals and RIAs, has observed a substantial uptick in interest in its non-U.S. equity and bond offerings compared with last year, according to Sanders. "What you see in the survey, I see in the stats," Sanders says.

Still upbeat. Despite their bearish outlook, many independent advisors remain optimistic about their own business prospects, according to the survey.

More than three-fifths of respondents said they were "confident" or "extremely confident" in their ability to grow their business in 2025, given the current market environment. Amid high market uncertainty, more clients may turn to wealth advisors for guidance.

"Whenever there's more volatility in the markets, there's more business, " Sanders said. "When markets move sideways, it's not as good for advisors or brokers."

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

June 13, 2025 13:30 ET (17:30 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.