Millennials Are More Likely to Own ETFs

“Investors like that ETFs allow them to broaden their investment horizons efficiently and value ETFs’ straightforward pricing without hidden fees,” Alison Wertheim, a spokesperson for Charles Schwab, told TheStreet.

ETFs also come with some of the cheapest fees in the fund industry. According to XTF data, there are 1,934 U.S.-listed ETFs with an average expense ratio of 0.58%. Some of the cheapest ETF options come with a dirt cheap 0.03% expense ratio.

The price of owning ETFs is a “fraction of the cost compared to legacy mutual funds,” which makes it attractive for investors comparing costs of investments, Dave Gedeon, head of research and development of global indexes for Nasdaq, told TheStreet.

Related: ETFs Gain Ground as Advisors Look to Passive Beta-Index Strategies

Moreover, Rowland Wilhelm, a director at Reaves Asset Management, argued that new phone apps have also contributed to the growth and popularity of ETFs among Gen Y-ers as an easy means of accessing the markets.

“Security in apps from banks or brokerages which allow you to purchase ETFs has steadily increased,” Wilhelm said. “Automatically generating password apps, two stage authentications and fingerprint IDs have made the phone part of the purchasing process, ensuring quick, easy and secure transactions.”

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CORRECTION: Rowland Wilhelm