CBS MarketWatch: ExchangeTraded Funds User Poll

1
CBS MarketWatch Exchange-Traded Funds User Poll

• May 2004

Confidential and Proprietary
2
User Poll Objectives and Methodology

• Poll objectives
• Provide added value internal research to
  advertising clients on ETF consumers
• Gauge/predict CBS MarketWatch users investment
  behavior with ETFs
• Gain insight on who the ETF investor is
• Learn about the ETF information or research
  consumers are looking for to assist in our ETF
  Center content development
• Run dates May 17th, 2004 May 20th, 2004
• Recruitment Pop up questionnaire off of CBS
  MarketWatch story.asp pages to 1 out of every 10
  visitors.
• Total completed responses 451

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Summary of Results All Respondents

• For all respondents (N 451)
• ETF knowledge level On a scale of 1 (no clue) to
  5 (extremely knowledgeable), CBS MarketWatch
  survey respondents knowledge level averaged a
  2.7. 27 ranked themselves a 4 or 5 (extremely
  knowledgeable) and 42 ranked their knowledge
  level as a 1 (no clue) or 2.
• ETF Interest level On a scale of 1 (not at all
  interested) to 5 (very interested), 38 of CBS
  MarketWatch respondents ranked interest level in
  ETFs a 4 or 5 (very interested) and 40 of CBS
  MarketWatch survey respondents ranked their
  interest level a 1 (not at all interested) or 2.
• Top 3 ETF topics survey respondents interested in
  learning Advantages and disadvantages of ETFs,
  the best and worst ETFs, and the costs (and fees)
  associated with ETFs.
• Frequency of ETF investments 11 of survey
  respondents invest (or trade) ETFs on a daily
  (1), weekly (5), or monthly (5) basis. 55
  have never invested in ETFs.
• For survey respondents who have invested in ETFs
  (N206), 38 typically hold ETFs for 1 year or
  less before selling or trading.
• Likelihood of investing in ETFs next 6 months
  28 of survey respondents ranked likelihood of
  investing in ETFs in the next 6 months a 4 or 5
  (very likely) and 55 ranked their likelihood a 1
  (not at all likely) or 2.

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Summary of Results Have ETF Knowledge

• For respondents who are knowledgeable about ETFs
  (N 142, ranked knowledge level a 4 or 5)
• Interest level On a scale of 1 (not at all
  interested) to 5 (very interested), 67 of CBS
  MarketWatch respondents ranked interest level in
  ETFs a 4 or 5 (very interested)
• Likelihood of investing in ETFs next 6 months
  55 of survey respondents ranked their likelihood
  of investing in ETFs in the next 6 months a 4 or
  5 (very likely)
• Frequency of ETF investments 28 of survey
  respondents invest (or trade) ETFs on a daily
  (4), weekly (12), or monthly (12) basis. 19
  have never invested in ETFs.
• Age 58 are ages 45
• Investor type 31 are financial advisors or
  institutional investors
• Professional/Career level 16 are Sr. Management
• Investment Transactions past 12 months 41 have
  made 50, 24 have made 100
• Household Income 30 have HHI of 150,000
• Current Market Value of Portfolio 40 have
  portfolio value of 500,000

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Summary of Results No ETF Knowledge

• For respondents who are not knowledgeable about
  ETFs (N 225) ranked knowledge level a 1- no clue
  or 2)
• Interest level On a scale of 1 (not at all
  interested) to 5 (very interested), 19 of CBS
  MarketWatch respondents ranked interest level in
  ETFs a 4 or 5 (very interested)
• Likelihood of investing in ETFs next 6 months 8
  of survey respondents ranked their likelihood of
  investing in ETFs in the next 6 months a 4 or 5
  (very likely) and 77 ranked likelihood a 1 (not
  at all likely) or 2.
• Frequency of ETF investments 79 have never
  invested in ETFs.
• Age 68 are ages 45
• Investor type 9 are financial advisors or
  institutional investors
• Professional/Career level 8 are Sr. Management
• Investment Transactions past 12 months 14 have
  made 50, 9 have made 100
• Household Income 16 have HHI of 150,000
• Current Market Value of Portfolio 15 have
  portfolio value of 500,000

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Summary of Results Current ETF Investors

• For survey respondents who have invested in
  ETFs (N237)
• Knowledge level On a scale of 1 (no clue) to 5
  (extremely knowledgeable), 48 of CBS MarketWatch
  survey respondents ranked knowledge level in ETFs
  a 4 or 5 (extremely knowledgeable)
• Interest level On a scale of 1 (not at all
  interested) to 5 (very interested), 60 of CBS
  MarketWatch respondents ranked interest level in
  ETFs a 4 or 5 (very interested)
• Likelihood of investing in ETFs next 6 months
  51 of survey respondents ranked their likelihood
  of investing in ETFs in the next 6 months a 4 or
  5 (very likely)
• Age 68 are ages 45
• Investor type 20 are financial advisors or
  institutional investors
• Professional/Career level 13 are Sr. Management
• Investment Transactions past 12 months 33 have
  made 50, 17 have made 100
• Household Income 26 have HHI of 150,000
• Current Market Value of Portfolio 32 have
  portfolio value of 500,000

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Summary of Results Cross tab Comparison
8
Results All Respondents
9
ETF Expertise
of Respondents ETF Expertise
Question On a scale of 1 5 (1no clue and
5extremely knowledgeable) please rank your
investment expertise as it pertains to
Exchange-Traded Funds (ETFs)? N451
Source CBS MarketWatch ETF User Poll, 5/2004
10
Interest in ETF
of Respondents Interest Level in ETFs
Question On a scale of 1 to 5 where 1 means
not at all interested and 5 means very
interested how interested are you in
Exchange-Traded Funds (ETFs)? N451
Source CBS MarketWatch ETF User Poll, 5/2004
11
ETF Trading/Investing Frequency
of Respondents ETF Trading Frequency
Question How often do you invest (or trade)
Exchange-Traded Funds (ETFs)? N451
Source CBS MarketWatch ETF User Poll, 5/2004
12
Holding Period for ETFs
of Respondents Holding Period for ETFs
Question How long do you usually hold
Exchange-Traded Funds (ETFs) before you sell or
trade them? (For all respondents who have
invested or traded in ETFs) N206
Source CBS MarketWatch ETF User Poll, 5/2004
13
Likelihood of Investing in ETFs in next 6 months
of Respondents Likelihood of Investing in ETFs
in next 6 Months
Question In the next six months how likely are
you to invest in Exchange-Traded Funds
(ETFs)? N451
Source CBS MarketWatch ETF User Poll, 5/2004
14
ETF Topics Users interested in
of Respondents Preferred Topics
Question What topics about ETFs are you
interested in learning about? (choose all that
apply) N451
Source CBS MarketWatch ETF User Poll, 5/2004
15
Other ETF topics interested in learning, Fill in
Question What topics about ETFs are you
interested in learning about? (choose all that
apply)
Source CBS MarketWatch ETF User Poll, 5/2004
16
Other ETF topics interested in learning, Fill in
(cont.)
Question What topics about ETFs are you
interested in learning about? (choose all that
apply)
Source CBS MarketWatch ETF User Poll, 5/2004
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Respondent Demographics
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Age Gender
of Respondents
Source CBS MarketWatch ETF User Poll, 5/2004
N451
19
Investor Type
of Respondents
Question Which of the following bests describes
you N451
Source CBS MarketWatch ETF User Poll, 5/2004
20
Education Level
of Respondents
Post Graduate
College Graduate
Some College, Trade, Technical, or Vocational
Training
High School
Question Last level of education completed N
421
Source CBS MarketWatch ETF User Poll, 5/2004
21
Professional/Career Level
Question What category best describes your
professional/career level? N 451
Source CBS MarketWatch ETF User Poll, 5/2004
22
Household Income Level
of Respondents
Question Average Household Income N 353
(respondents answering Prefer not to disclose
have been left off of this slide)
Source CBS MarketWatch ETF User Poll, 5/2004
23
of Investment Transactions in past 12 months
of Respondents
Question Number of Investment Transactions
youve made in the past 12 months N451
Source CBS MarketWatch ETF User Poll, 5/2004
24
Current Value of Portfolio
of Respondents
Source CBS MarketWatch ETF User Poll, 5/2004
Question Current Value of Portfolio N310
(respondents answering Prefer not to disclose
have been left off of this slide)