"The average investor's portfolio now carries more digital asset exposure than ETF exposure, a structural change from how household portfolios were typically built a decade ago."
"The order in which gains and losses occur matters more than the average return when an investor is drawing down a portfolio, a dynamic known as sequence-of-returns risk."
The Charles Schwab Modern Wealth Survey 2025 reveals that cryptocurrency constitutes 10% of the average American investor's portfolio, outpacing ETFs at 6% and bonds at 8%. Currently, 35% of investors hold crypto, with 65% planning to increase their allocation over the next two decades. The survey indicates a significant shift in portfolio composition, particularly for retirees, who must consider withdrawal timing and asset volatility. Sequence-of-returns risk becomes crucial for those drawing down portfolios, as recent market fluctuations have impacted cash realized from asset sales.
Read at 24/7 Wall St.
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