“Firms need to also think beyond these basics, and consider the psychology that draws these investors to particular access points and product features, if they want to remain relevant in this space,” Dunn said.

A recent Charles Schwab survey revealed that 60% of millennial investors use ETFs as their primary investment, compared to 28% for all investors.

Younger investors are also more in tune with the markets. Securian found in a recent survey that 42% of millennial investors say they are very knowledgeable about investments, compared to 17% of baby boomers. Older millennials who were affected by the 2008 financial crisis may also take more cautious approach to investment decisions while those who didn’t experience major sell-offs during the dotcom bust and financial downturn may be more risk tolerant.

Moreover, ETF providers should also keep in mind other considerations, such as targeted market exposures like commodities and generational values or social impact of invested companies like those that adhere to ESG principles.

“Firms who launch thematic investment products should carefully consider what issues resonate with millennials and why,” Dunn said. “Many have grown up in a ‘cyber’ world, for example, and connect to companies that tackle cybersecurity issues.”

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