AnalyticsAddepar Introduces Investor Sentiment Index

Addepar, a technology platform for wealth management, today introduced the Addepar Investor Sentiment IndexSM. An index of high- and ultra-high-net-worth (U/HNW) investor sentiment derived from U.S. equity transactions captured on the Addepar platform, it analyzes activity across more than 10,000 portfolios from investors each with more than $10 million in total assets.

While traditional investor sentiment readings are derived from survey results, which don’t always accurately represent real investment choices, the Addepar Investor Sentiment Index is based on the true aggregated data of actual transactions. Moreover, existing market movement indices are dollar-weighted, meaning small movements by large players can skew results. Conversely, the Addepar Investor Sentiment Index is equal-weighted, giving a more accurate read of overall investment activity. As a result, for the first time, Addepar clients can leverage timely insights to compare their equity investing decisions with those of their peers on a weekly and monthly basis.

“Earlier this year, Addepar surpassed $2 trillion in client assets aggregated on the platform. Using the critical mass of data we have curated, we are meaningfully compounding the value we can bring to Addepar’s clients by complementing our category-defining software with relevant and timely analytic insights,” said CEO, Eric Poirier. “Building on our introduction of Marketplace, which unifies access to desirable financial products that have historically been hard to access and manage efficiently, the Addepar Investor Sentiment Index punctuates Addepar’s ability to provide our clients with a truly unique and differentiated set of offerings to serve their clients and expand their trusted relationships. This new offering is our first of many as we expand our scope to engage with a wider audience. Our broad goal is to empower people everywhere to make more informed, data-driven decisions about their investments, irrespective of market or economic conditions.”

“Addepar has taken a novel approach to measure sentiment. Their preliminary results showing the contrarian investment behavior of sophisticated investors is striking and worthy of continued attention,” said Professor Chris Geczy, Academic Director of the Jacobs Levy Equity Management Center for Quantitative Financial Research, and Academic Director of the Wharton Wealth Management Initiative, The Wharton School, University of Pennsylvania.

The Index provides a uniquely transparent view of how highly sophisticated investors are adjusting their equity portfolios over specific periods of time. Figure 1 (below) demonstrates a high-level example, showing a history of the Addepar Investor Sentiment IndexSM compared to the S&P 500 index (April 2016 – July 2020).

  1. The Addepar Investor Sentiment Index demonstrates that this cohort is contrarian.
  2. Over the past five years (pre-pandemic) this group of investors has tended to invest ahead of the market. However, since April, this relationship has reversed and U/HNW investors have been consistent net sellers of U.S. equities, while markets have continued to rally.
  3. The Addepar Investor Sentiment Index allows clients to learn from their peers as they’re navigating an unprecedented market environment.

The Addepar Investor Sentiment Index and additional analytics are now available to clients. The Addepar Investor Sentiment Index will be made available publicly on a monthly basis. To learn more, visit:


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