Millennials – it’s the largest generation in the United States made up of more than 90 million people aged 16 to 36.
Global X Funds hopes to capitalize with its launch today of its Global X Millennials Thematic ETF (Nasdaq: MILN).
MILN is the ninth ETF in Global X’s suite of thematic funds, and the first in its ‘People’ category, which focuses on emerging trends pertaining to changing demographics and consumer behaviors.
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Global X plans to further expand the ‘Thematic – People’ category with launches of the Global X Longevity Thematic ETF (LNGR) and the Global X Health & Wellness Thematic ETF (BFIT) expected next week.
MILN includes those companies that are among the best positioned to benefit as Millennials, those aged 16-36, gradually enter peak earning years, and become a major force within the U.S. economy.
[related_stories]Millennials currently earn roughly $2 trillion in income, and are poised to earn roughly $8 trillion by 2025. Additionally, the total transfer of wealth from Baby Boomers to Millennials is expected to reach $40 trillion.
Jay Jacobs, director of research of Global X, said as Millennials enter their prime earning years, companies that cater to their unique spending preferences are expected to gain market share.
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“These companies can come from a broad range of industries and hit on a variety of sub-themes inherent with millennials, such as the use of social media, consumption of digital content, a focus on health and wellness, and investment in education and career advancement, among many others,” Jacobs said.
Thematic investments aim to access the high growth potential of companies at the forefront of a long-term, structural changes in the economy. By transcending classic sector and industry classifications, thematic investing seeks to harness macro-level trends and the investments best suited to benefit from those trends.