5 Millennial Friendly ETF Investing Ideas
Zacks Investment Research | Sep 18, 2016 10:56PM ET
Millennials – population with birth years ranging from 1980–2000 – are increasingly hogging the attention of the investing world. And why not? After all, this cohort seems to be a key growth driver of the U.S. economy, Global X , millennials now earn about $2 trillion, with income projected to grow to $8 trillion by 2025.
While there are pure-play millennial ETFs namely Global X Millennials Thematic ETF (SG:MILN) and Principal Millennials ETF GENY to tap this emerging trend, investors can also tap the below-mentioned ETFs which revolve around millennials.
Look for Value
Millennials are deemed to be value conscious. This part of the population has seen many upheavals in the global equity market including the dot.com bubble burst in 2000, the fall of Lehman Brothers in 2008, and the resultant recession and the Euro zone debt crisis in 2011.
It is not surprising that the backlash of such recessionary events made the large part of this class edgy, value-driven and looking for what’s being sold at bargains. A survey by Goldman Sachs (NYSE:GS) confirmed the fact by indicating “lower employment levels and smaller incomes have left younger Millennials with less money than previous generations.”
Thus, value ETFs, especially those that offer solid dividend yields, should be intriguing picks for Millennials. Our pick is PowerShares S&P 500 High Dividend Low Volatility Portfolio ETF 5 Undervalued ETFs for Dividend Lovers ).
Another choice in the present market scenario could be iShares Morningstar Mid-Cap Value ETF JKI with 13.1 times of P/E and 2.20% dividend yield. On the global level, First Trust Dow Jones Global Select Dividend Index Fund (V:FGD) with 13.8 times of P/E and 4.70% of yield can also be a fascinating pick.
Experiences Over Goods
As millennials are viewed as a class that New Restaurant ETF in the Offing: Will It See Success? ).
Along with precedence over experiences, millennials have a fascination for healthy lifestyle, putting Health & Wellness Thematic ETF (BFIT) in focus.
Social Media on the Radar
Millennials love to indulge in social media. As per a report by Goldman Sachs Global Investment Research, 44% of millennials are into text messaging, 38% in both social media and instant messaging and 16% in blogging – higher than any other generation.
For obvious reasons, this preference pattern puts Global X Social Media ETF (CM:SOCL) and First Trust NASDAQ Smartphone ETF FONE in focus.
Broader Technology a Sweet Spot
Get The News You Want
Not only social media,millennials are known for their tech mania. As much as 50% of millennials play video games compared with 27% Gen X and 16% Boomers. About 45% are busy chatting compared with 31% Gen X and 10% Boomers. Apart from these, downloading music/videos, watching TV online are also in the bucket list of millennials. As a result, PureFunds Video Game Tech ETF Best Sector ETFs for a Rising Rate Scenario ).
Home Buying in the Cards?
Though the percentage of millennials staying with their parents has risen over the years, Goldman’s study reveals that about 93% of the millennials want to buy a home at some point in the future. This should push up home sales. In any case, the housing sector is in great shape lately with 5 ETFs to Cash in on Home-Buying Spree ).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.