June AAII Asset Allocation Survey: Highest Equity Allocations Since February

Individual investors’ exposure to equities reached a four-month high in June according to the latest AAII Asset Allocation Survey. Fixed-income allocations, meanwhile, declined to an eight-month low.

Stock and stock fund allocations increased by 2.4 percentage points to 63.2%. Equity allocations were last higher in February 2020 (66.1%). The historical average is 61.0%.

Bond and bond fund allocations pulled back by 0.9 percentage points to 18.3%. Fixed-income allocations were last at this level in October 2019. Even with the decrease, bond and bond fund allocations are above their historical average of 16.0% for the 16th consecutive month and the 17th time in 18 months.

Cash allocations declined 1.6 percentage points to 18.4%. This is the first time cash allocations have been below 20% since February 2020 (14.8%). The historical average is 23.0%.

The increase in equity allocations comes as the stock market experienced its best quarterly performance since 1998. Despite the ongoing rebound, optimism among individual investors about the short-term direction of stocks remained below average throughout June in our weekly sentiment survey.

June AAII Asset Allocation Survey results:

• Stocks and Stock Funds: 63.2%, up 2.4 percentage points
• Bonds and Bond Funds: 18.3%, down 0.9 percentage points
• Cash: 18.4%, down 1.6 percentage points

June AAII Asset Allocation Survey details: 

• Stocks: 27.9%, up 1.7 percentage points
• Stock Funds: 35.4%, up 0.7 percentage points
• Bond Funds: 15.3%, down 0.3 percentage points
• Bonds: 3.0%, down 0.6 percentage points

Historical Averages:

• Stocks/Stock Funds: 61.0%
• Bonds/Bond Funds: 16.0%
• Cash: 23.0%

The numbers are rounded and may not add up to 100%.

The AAII Asset Allocation Survey has been conducted monthly since November 1987 and asks AAII members what percentage of their portfolios are allocated to stocks, stock funds, bonds, bond funds and cash. The survey and its results are available online at: www.aaii.com/investor-surveys.