Even headed into a tumultuous year for the S&P 500, millionaires were surprisingly steady with where they put their money.
High-net-worth investors (HNWI) barely changed their asset allocation coming into 2025, says a new report from Capgemini Research Institute. Of the five major asset classes millionaires invest in, two were completely unchanged entering 2025 as compared with their levels coming into 2024.
And of the three asset classes that did change, the modifications were tiny. Wealthy investors took down their allocation to bonds by just 2% to 18%. And they shifted half of that small amount of freed-up capital to inch up exposure to cash and the rest to stock.
"Cash holdings remained a vital asset class for HNWI investors as market volatility and fears of geopolitical tensions prompted a flight to safety," said the report.
But overall, wealthy investors appear to be mostly staying the course.
Millionaires Remain Somewhat Bullish
Wealthy investors are willing to scurry into cash when they're nervous. But that's not the case now.
In fact, with just 26% of their portfolios in cash, that's considerably less than the panicked 34% allocation to cash in 2023. Cash is getting tougher to ignore. The yield on the JPMorgan Ultra-Short Income ETF is up to an attractive 4.9%. Safe assets like cash get more attractive at or around the 5% level.
But rich investors are not just exiting the stock market, either. Millionaire investors also added to their exposure to stocks to 22%. That's their second-largest position, following cash. And so far, it's paying off despite the volatility in April. The Vanguard Total Stock Market ETF is up nearly 13% in a year's time.
If there's any change, it's that wealthy investors don't see as much opportunity in bonds. They trimmed their exposure to 18%. It's easy to see why. With the Vanguard Total Bond Market ETF yielding just 3.7%, investors simply aren't getting paid for the risk they're taking. Meanwhile, millionaire investors held their positions steady in real estate and alternatives at 19% and 15% weightings, respectively.
Where Are Millionaires Coming From?
North America continues to be the hot spot for millionaires. The wealth of millionaires grew the fastest, 8.9%, in North America. The number of millionaires, too, grew the most in the region: by 7.3%.
In contrast, the wealth of millionaires only grew 4.8% in Asia and 0.7% in Europe.
But overall, the ranks of the wealthy continue to grow. Global high-net-worth wealth rose 4.2% in 2024.
"To leverage market momentum and tackle volatility, HNWIs are rebalancing their portfolios by pairing capital protection and return potential, resulting in a relatively stable asset allocation, very similar to that seen during 2024," the report said.
Millionaires' Portfolios Mostly Unchanged For 2025
| Asset class | 2025 allocation | '25 allocation change | Representative ETF | Symbol | 1-year change | Yield |
|---|---|---|---|---|---|---|
| Cash and equivalents | 26% | 1% | JPMorgan Ultra-Short Income | JPST | 0.4% | 4.9% |
| Stock | 22% | 1% | Vanguard Total Stock Market | VTI | 12.6% | 1.3 |
| Fixed income | 18% | -2% | Vanguard Total Bond Market | BND | 0.7% | 3.7 |
| Real estate | 19% | 0% | Vanguard Real Estate | VNQ | 7.5% | 3.8 |
| Alternatives | 15% | 0% | NYLI Hedge Multi-Strategy Tracker | QAI | 3.0% | 2.2 |
