As competition in the exchange traded fund industry heats up with many market segments filled out, fund sponsors will have to rethink the way they do business to attract younger investors.
“Millennials have dramatically changed how we think about the ETF industry, how we position products, and how we shape the marketing strategies around them. They will continue to influence how we work, interact and invest, and their behaviors will eventually become the norm,” writes Steven Dunn, Executive Director and Head of U.S. for ETF Securities, for Wealth Management.
It is important for firms who want to stay competitive to consider branding, marketing and product development strategies aimed at meeting the millennial generation’s needs.
With over 75 million people, the millennials demographic is the largest market segment in the U.S. and largely remains an untapped source for many financial services firms.
The old way of doing business may not be right for targeting this young investment group as many millennials rely on self-directed platforms and so-called robo advisors based on ETF models. Many new investors are also evaluating funds based on the right exposure at the cheapest price.