Younger, value-conscious do-it-yourself (DIY) investors are increasingly seeking the guidance of professional advisors amid growing uncertainty about the U.S. economy, according to the findings of a redesigned J.D. Power 2025 U.S. Investor Satisfaction Study released on Thursday.
Raymond James ranked highest in overall satisfaction among investors using advisors, scoring 748 (on a 1,000-point scale), while Vanguard ranked highest in overall satisfaction among DIY investors, scoring 704.
U.S. Bank (738) came in second and Edward Jones (734) ranked third among advised investors. Fidelity (703) was second and T. Rowe Price (691) third among DIY investors, according to the study, which was based on responses from 7,876 advised and 3,723 DIY investors to a survey conducted from January through December 2024.
The new U.S. Investor Satisfaction Study is a combination of the former J.D. Power U.S. Full-Service Investor Satisfaction Study and J.D. Power U.S. Self-Directed Investor Satisfaction Study, the firm pointed out.
Seeking Human Advice
Many younger investors who would traditionally have fallen into the DIY category are actively looking to work with human advisors.
“While Generations Y and Z are comfortable with digital platforms, J.D. Power research reveals a critical disconnect: access to online investment tools doesn’t translate to perceived expertise,” Kapil Vora, Senior Director of Wealth Intelligence at J.D. Power, told WSR.
“Younger DIY investors are significantly less likely to claim investment management knowledge compared to their Boomer DIY counterparts (16% vs. 31%), and they share a similar skepticism about the sufficiency of online investment information,” Vora said.
He added: “This highlights a crucial need for accessible, comprehensive education and guidance, demonstrating that technology alone cannot bridge the gap between information and true investment confidence.”
Many younger investors who would traditionally have fallen into the DIY category are actively looking to work with human advisors.
“For younger generations of investors who’ve been exposed to digital, human and hybrid forms of investment advice during the past several years, the decision to lean into DIY or advised channels is rarely ever an either/or scenario,” Vora said in a news release.
He added: “Increasingly, investors are using several approaches, and many younger investors who would traditionally have fallen into the DIY category are actively looking to work with human advisors.”
But Vora cautioned it is “no longer enough to have a brand legacy or an array of products and services.” Instead, companies “must deliver value and make the experience easy for investors,” he said.
The redesigned 2025 study found that over one-fourth (27%) of current DIY investors said they were likely to use a financial advisor in the next 12 months.
The percentage of DIY investors seeking advisory relationships was highest among members of Gen Y (those born 1977-1994) and Gen Z (1995-2006), according to the study. The lowest number of investors seeking advice from advisors was among those in Gen X (1965-1976), boomer (1946-1964) and pre-boomer (before 1946) generations.
“We anticipate these percentages would be even higher across all generations since the close of fielding for this study, given the economic shifts of the past several weeks,” said Vora.
Among investors with DIY investment accounts, the main reasons cited for maintaining those accounts were that their finances and investments were simple enough to manage on their own (41%) and they enjoyed managing their own investments and finances (also 41%).
Another data point cited by the study was that, although interest in advisory services was highest among younger investors, traditional wealth management firms are skewed toward older investors.
The percentage of investors younger than 40 was only 11% at traditional wealth management firms, compared to 20% at retirement/discount brokerage firms, 26% at banks and 42% at fintech firms, J.D. Power said.
J.D. Power warned that the ease of investors being able to do business was critical.
“When it comes to the individual dimensions that drive investor satisfaction with wealth management firms, ease of doing business is one of the most critical criteria and ranks just below trust; products and services; and people as the foundation for a positive investor experience,” according to J.D. Power.
Jeff Berman, Contributing Editor & Reporter at Wealth Solutions Report, can be reached at jeff.berman@wealthsolutionsreport.com.
