Note: This article is courtesy of

By TD Ameritrade

Since its inception 22 years ago, the exchange-traded funds (ETFs) market has expanded to provide investors exposure to a wide variety of equity markets.

Given their lower cost than actively managed mutual funds and inherent diversification, ETFs are also proving to be a smart way for younger investors to begin their investment journeys.

According to recent TD Ameritrade data, 14% of ETFs assets under custody are held by millennials.  And while the three generations (Millennials, Generation X and Boomers) share some of the more common ETFs (VTI, SPY, QQQ) millennials are diversifying with real estate while Gen X and Boomers are more traditional and looking at gold. Millennials and Gen X are also lending more of a priority to emerging markets while Boomers are putting more money into growth and value.

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