Generation Y investors are also more likely to use technology to invest and find it easier to trade ETFs. Ben Johnson, director of global ETF research at Morningstar, argued that ETFs are often marketed in a “generationally friendly setting,” such as a robo-advice app on a smartphone. “It’s not something that’s being sold to them across an old oak desk by one of their dad’s friends.”

Money managers are also seeing the potential of this new group of investors and have launched a number of millennial-themed investment strategies.

SEE MORE: Why Millennials May Be Looking to Change Advisors

For instance, the Principal Millennials Index ETF (Nasdaq: GENY) is an example of thematic investing. GENY tracks the Nasdaq Global Millennial Opportunity Index. This index seeks to capture the global spending and lifestyle activities of the largest generation ever, offering exposure to brand name companies specializing in social media, digital media, technology, healthy lifestyles, travel and leisure. The companies will evolve over time as the spending patterns of millennials change as they age.

Global X also came out with the Global X Millennials Thematic ETF (NasdaqGM: MILN), which focuses on investing in companies poised to benefit from the growing spending power of the US millennial generation.

For more information on the ETF industry, visit our current affairs category.