Hybrid investors are a fast-growing client segment that, while more skeptical than other groups, cares a lot about the value you can deliver as an advisor. So, how can you win the confidence and loyalty of these investors?

In the early days of the stock market, when brokers would record trades on paper, the average investor had limited information. But today, technology enables investors to access financial tools online, do their own research, and quickly trade using self-service platforms on their own without an advisor’s guidance if they choose to do so.

Enter one of the fastest growing investor segments: the hybrid investor. Hybrid investors are investors that have a relationship with an advisor, but also have self-directed accounts.

As of 2021, a third of affluent investors identified as hybrid investors, an increase of 9% in just three years.¹ And according to research from our 2024 Influential Investor Segment Study, 40% of hybrid investors are Millennials, another high-growth, high-value segment for advisors.²

As you look to grow your practice, hybrid investors could play a vital role in your growth strategy. Understanding what hybrid investors want and care about is key to connecting with this high-growth group.

What Do Hybrid Investors Want?

Hybrid investors — or those who lean into the duality of personalized human advice and the convenience of direct investing via self-service platforms — are fee-sensitive, proactive about their finances, and prefer teamwork and transparency from advisors. As you look to tailor your services and manage relationships with hybrid investors, consider their preferences and trends in how they invest to better engage with them.

A Greater Sense of Control

Over Fees

In our study, 45% of hybrid investors reported they would consider switching or leaving their advisor if they raised fees (compared to 38% for all segments surveyed).³ And 47% of hybrid investors have at least one ETF in their portfolio compared to 27% of advised-only investors,⁴ likely because ETFs tend to be more cost effective than other investment vehicles. But fees are only one part of the equation.

Over Their Investments (They Worry Most About What They Can’t Control)

Hybrid investors are fueled by a sense of financial control, expressed by the fact that they take on a portion of their investing on their own. But it’s what they can’t control that worries them most. In fact, their top financial concerns tend to revolve around market and economic factors outside of their control, such as rising inflation, costs of healthcare, and market volatility.⁵

How to address this trend: There are crucial services — like tax planning, risk management, and other holistic financial strategies — that self-service platforms likely don’t address. And, because hybrid investors seek a sense of control and display fee sensitivity, advisors should make a point to emphasize the value of the vital wealth management services they can provide that self-service platforms lack — services that could potentially help hybrid investors feel more in control of their ability to successfully navigate the issues they worry about most, like inflation or healthcare costs.

Hybrid Investors Want A Team Player

Hybrid investors tend to look to multiple channels for financial advice and recommendations:

• 67% of hybrid investors want to collaborate with their financial advisor to make investment decisions, and
• 71% of hybrid investors have an advisor that is part of a team.⁶

As a result, they’re likely to seek out advisors who integrate team-first qualities in their client approach, and less likely to let advisors make all of their investment decisions for them.⁷

Fewer hybrid investors (19%) say they rely on advisors to make decisions for them, compared to millennial investors (20%), women investors (29%), and Gen X investors (26%).⁸

How to address this trend: Compared to other high-growth client segments, hybrid investors are likely to want more collaboration than outright direction when it comes to their investments. But while 67% say it’s extremely important for their advisor to have an understanding of their goals, only 42% rate their advisor as “excellent” in helping them stay confident about reaching their financial goals in volatile markets.⁹

Ample opportunities to build deeper relationships with this investor segment exist. And the application of financial planning software is one way advisors can accomplish that, as it enables you to collaborate with clients, explore possibilities interactively, and develop actionable goals.

Don’t Forget About Technology

Because hybrid investors are a tech-savvy client group, they’re more likely to care about the technology platforms used by your firm.¹⁰ Given that hybrid investors seek transparency and rely on both advisors and digital tools to make decisions, advisors who offer an accessible technology platform can gain an edge with this client segment.

Hybrid investors were more likely to say a good technology platform was important or extremely important when selecting an advisor (68%) compared to Gen X (63%), women investors (63%), and advised-only investors (60%).¹¹

How to address this trend: For many hybrid investors, integrated technology is a deciding factor in choosing an advisor. It allows them to easily monitor their investments and financial plans across multiple devices, while also strengthening the guidance you provide.

Even with the advancements in technology that are reshaping advisory services, the value of human relationships remains strong. To best connect with hybrid investors, optimize your service model to provide a seamless, technology-integrated experience that only enhances your interactions with clients. Where possible, explore ways to integrate direct brokerage with advisor-led offerings within your practice, to help you build stronger connections with this investor segment.¹²

The Bottom Line

Hybrid investors present a meaningful growth opportunity, one that thrives on a careful balance of innovation and personalized service. To lead in this evolving market, it’s important to understand the unique needs of these investors — clients who value both control and professional guidance.

Tailoring your services to this segment means providing the flexibility they seek while still delivering the objective and personalized advice that differentiates you. This may involve refining your service model, investing in collaborative tools and technology, and sharing decision-making more transparently.

By aligning your approach with the needs and preferences of this segment, you can cultivate deeper, more trusting relationships that stand up to market changes. And that is likely to translate into tangible benefits, such as building a more loyal client base and driving sustainable growth for your practice.