Ride The Millennial Wave With These ETFs
Zacks Investment Research | Aug 27, 2019 01:00AM ET
Millennials — people born between 1980 and 2000 — are increasingly being followed by the investing world. After all, this cohort seems to be a key growth driver of the U.S. economy, a research house . The research house went on to point out that immigration added “more population to this group than any other” and the millennial population is likely to jump to 76.2 million in 2036.
As this section of the population has chances of making up Why Millennial ETFs Are Beating the Market ).
Against this backdrop, we highlight a few ETF strategies that will benefit from the rise in millennials.
Home Buying: Millennials’ Preference
Though the percentage of millennials staying with their parents has risen over the years, “many millennials are now reaching prime home-buying age — 30 to 35 years old” — and that could drive sales for homebuilding companies.
John Lovallo, home builder analyst for Bank of America Merrill Lynch (NYSE:BAC), noted that “in 2025 there are going to be 3 million more millennials than baby boomers at their peak in 1987,” which could propel the homebuying industry. SPDR S&P Homebuilders (NYSE:XHB) ETF ETFs to Grab as US Existing Home Sales Hit a 5-Month High ).
Experiences Over Goods
As millennials are viewed as a class that PEJ may be considered by investors due to this preference.
Broader Technology a Sweet Spot
Millennials are known for their obsession with technology. About 85% ) are quite savvy with social media.
Invesco NASDAQ Internet ETF Sign In to Social Media ETFs as Twitter Soars on Q2 Results ).
Organic & Healthy Food Habits
Millennials are currently the driving factor behind organic produce sales. This section of the population is health conscious and aware of the importance of food standards and production methods. This bodes well for Global X Health & Wellness Thematic ETF (AS:BFIT) and The Organics ETF (ASX:ORG) .
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