Exchange traded fund assets could continue to rise at a rapid pace since younger investors are the biggest users of the low-cost financial products, according to a report.

“Seven out of 10 Gen Y investors — loosely defined as those born in the late 1970s through around 2000 — said they purchased their first ETF within the last 12 months, while just 20% of all investors said they’d done the same,” reports Jason Kephart at InvestmentNews, citing a Cogent Research study.

As the U.S. population ages, some analysts think changing demographics are fueling the growth of ETFs and continued outflows from stock mutual funds. [Are Shifting Demographics Driving ETF Growth?]

ETF sponsors say their investors represent a younger demographic. [ETF Investors ‘Represent a Younger Demographic’]

Among investors with more than $100,000 in investible assets, Generation Y is by far the most prevalent users of ETFs, InvestmentNews reports. “More than 40% of Gen Y investors said they own at least one ETF, compared with just 19% of Generation X investors and around 10% of baby boomers,” it said.

A key reason Generation Y is a big user group of ETFs is that they are most likely to use advisors, who as a group have embraced ETFs, according to the article.

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