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.

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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