Millennials — population with birth years ranging from 1980-2000 — are slowly turning out to be the backbone of the U.S. economy, outpacing baby boomers in 2015 and reflecting over one quarter of the nation’s population. By 2019, millennials will be America’s largest population cohort per projections from the United States Census Bureau.
This makes it important to track their life goals, shopping patterns and investment preferences for investment purposes. This is a pretty diverse generation with ages ranging from 22 to 37, thus capturing various stages of lives from “post-college to starting a family.”
While there are pure-play millennial ETFs like Global X Millennials Thematic ETF (BE:MILN) and Principal Millennials Index ETF GENY to tap this emerging trend, investors can also play the below-mentioned ETFs that revolve around millennials and their lifestyles.
Go Online
Millennials indulge in social media. As per a report by Goldman Sachs (NYSE:GS) Global Investment Research, 44% of millennials are into text messaging, 38% into both social media and instant messaging and 16% into blogging. The percentages are higher than any other generation.
Most of the millennials are busy and that’s why shop online. They reportedly spend less time in grocery stores than baby boomers and Gen X shoppers. For obvious reasons, such preference patterns put Global X Social Media ETF (CM:SOCL) , First Trust NASDAQ Smartphone ETF FONE andAmplify Online Retail ETF IBUY) in focus.
Broader Technology a Sweet Spot
On a broader level, millennials are tech savvy. 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 and watching TV online are part of millennials’ routine. A Google (NASDAQ:GOOGL) study showed that 60% of millennials hold a smartphone while cooking.
Around 85% of the generation prefers artificial intelligence to manage their finances. As a result, PureFunds Video Game Tech ETF GAMR and PowerShares NASDAQ Internet ETF PNQI, iShares U.S. Technology ETF IYW, Robotics & Artificial Intelligence ETF (AX:BOT) and ROBO Global Robotics and Automation Index ETF (NASDAQ:ROBO) will catch investors’ attention (read: Direxion Launches Leveraged Robotics ETF).
Organic & Healthy Food Habits
Millennials are currently the driving factor behind organic produce sales. They are health conscious and aware of the importance in food standards and production methods. Such habits should bode well for Global X Health & Wellness Thematic ETF (AS:BFIT) and The Organics ETF (AX:ORG) (read: Amazon (NASDAQ:AMZN)'s Foray Into Grocery to Hurt/Help These Stocks & ETFs).
Experiences Important Than Goods
Millennials are viewed as a class that prefers experiences to things. About 78% likes to shell out on experiences than on possessions, per a 2017 survey conducted by the Harris Group. So, PowerShares Dynamic Leisure and Entertainment Portfolio PEJ and SPDR S&P Transportation (NYSE:XTN) ETF XTN and U.S. Global Jets ETF (KL:JETS) should go well with this fondness (read: ETFs & Stocks to Fly High on Record Spring Travel).
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PWRSH-ND INTRNT (PNQI): ETF Research Reports
GLBL-X SOCL MDA (SOCL): ETF Research Reports
SPDR-SP TRANSPT (XTN): ETF Research Reports
GLBL-X H&W THM (BFIT): ETF Research Reports
PACIFIC (EX: JA (PEJ): ETF Research Reports
ROBO GR&AI (ROBO): ETF Research Reports
FT-NDQ SMARTPHN (FONE): ETF Research Reports
ISHARS-US TECH (IYW): ETF Research Reports
US GLOBAL JETS (JETS): ETF Research Reports
GLBL-X MILL THM (MILN): ETF Research Reports
PRIN-MILLNLS (GENY): ETF Research Reports
PF-ISE ELEC GMG (GAMR): ETF Research Reports
ORGANICS ETF (ORG): ETF Research Reports
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