As the growing group of millennials come of age and begin to grow their wealth, more younger investors are beginning to look at exchange traded funds.
For example, ETF inflows saw a big bump from millennial investors, those born between the early 1980s to 2000, in February, compared with prior months, according to TD Ameritrade data on clients trading and investing on its platform.
“Millennials play a key role in the future of our industry,” Keith Denerstein, director of product management at TD Ameritrade (AMTD), previously told Investor’s Business Daily. “Approximately one-third of our new accounts are from millennials, and while they’re in the early stages of the investing life cycle, they’ve already proven to be extremely savvy with their investment decisions.”
Specifically, millennial ETF net flows increased at an annualized rate of 24% in January/February, compared to 13% in November/December and 19% in the twelve months prior to November. February net flows a;sp increased at an annualized rate of 26%.
In contrast, Gen X, those born from early-to-mid 1960s through 1980, ETF net flows increased at an annualized rate of 12% in Jan/Feb, compared to 5% in Nov/Dec and 15% in the twelve months prior to Nov. February net flows increased at an annualized rate of 12%.