It makes sense. The brands that have been along longer and have established credibility tout older mean age of ownership. State Street SPDRs were the first ETFs available and a familiar name for all investors and iShares, BlackRock’s ETF brand, not only has established cred by having the most assets under management, but its influence is tied to more affluent investors through its many investment vehicles.
When you look at a brand like First Trust they are more niche and actively managed, a young man’s game. Ambitious attempts to beat the market with aggressive strategies are a hallmark of younger investors throughout time. That hasn’t changed with ETFs.
The concerning thing for the big players who have a more well-distributed balance of demographics is the Gen Xers and Millennials are coming into their peak earning years. As investors more well-versed in ETFs control more off the money these issuers will jockey for their dollars and having familiarity with them will be essential. Julia Johnston-Ketterer, author of the report and senior director at Market Strategies said, “…looking to the future, companies who do the best job connecting with younger investors who embrace ETFs are the firms that will likely to see the most growth.”