Understanding The Hispanic Investor



Considering the atmosphere for immigrants of Hispanic heritage, it is perhaps a little difficult to live as a predominantly Hispanic citizen in America these days.

But there are many wealthy Hispanics living in the United States, and they play a significant role in the investment environment, especially as their percentage of the overall population of the United States grows.

The strength and wealth of the affluent Hispanic market makes it a perfect segment for advisors and providers to consider specifically. Along with the cultural differences which exist in the Hispanic community, there are also differences regarding the way Hispanic people view wealth and investing.

Spectrem’s study on the differences in investment attitudes and behaviors based on ethnicity reveals those investment choices which indicate significant differences in investors based on their ethnicity. In segmenting investors who are White, Black, Asian or Hispanic, Ethnic Influences on Investment Decisions allows advisors to have a greater understanding of their clients for whom ethnic culture plays a large role in their lives.

Here are a few of the findings of the Spectrem study related to the unique nature of investment attitudes and behaviors among Hispanic clients:

·         While it is possible that affluent or wealthy Hispanic investors are first-generation wealthy, it is also possible that many Hispanic investors come from families that have been established in the United States for multiple generations and the wealth could be multi-generational.

·         The gender makeup of the Hispanic affluent investor population in America is close to 50-50. Female investors of all ethnicities and demographics complain about being treated poorly or disregarded occasionally in conversations about money and investing, and advisors need to understand that female Hispanics are a strong portion of the population among that culture.

·         While Hispanic investors invest in the stock market like others, they are also more heavily invested in alternative products like hedge funds and commodities.

·         Twenty-nine percent of Hispanic investors credit inheritance as one of their wealth creation factors, but they also have a high percentage of individual business owners in their demographic. As advisors know, business owners are a unique breed of investors, and Hispanic business owners probably have their own attitudes and behaviors.

·         Hispanic investors are much more likely to be offended by a delay in response from advisors, either by telephone or by email, than the general population of investors.



©2019 Spectrem Group

Keywords: Hispanic, investor, advisor, Spectrem, ethnic, communication