Millennials are such a sought after demographic that there are some ETFs dedicated to their spending habits. While this may appear to be too much of a nuanced investment approach, there’s more than meets the eye with ETFs such as the Principal Millennials Index ETF (Nasdaq: GENY).
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.
“The generation is paying for things that were previously seen as taboo by their parents, like therapy and plastic surgery. Social media has helped normalize both of these for millennials,” reports Business Insider. “Millennials’ are also paying for different lifestyle choices as a result of the economy and technological advancements they grew up in. As this generation waits to have kids at a later age than previous generations, taking time to first find their footing in the world, they’re turning to egg freezing to help them delay starting a family.”
Dream of GENY
The millennial generation is classified as U.S. citizens born approximately between 1980 and 2000. Millennials account for one-quarter of the nation’s population and are positioned to become a strong part of the workforce within the next decade. Older millennials are now entering prime earnings years, a point to consider as the U.S. economy starts the gradual reopening process.
Integral parts of the millennial-driven are shopping and entertainment consumption trends. Shopping and consumer trends are changing as more buyers rely on the convenience of online retailers to quickly and easily meet their discretionary needs. As the retail landscape changes, investors can also capitalize on the trend through ETFs that target the e-commerce segment.
Millennials are “renting out all aspects of their lives: There’s Airbnb for travel, Lyft for transportation, and Fernish for furniture, among other things. That’s not to mention other aspects of the share economy, like streaming services such as Netflix and Hulu, which millennials have turned to in order to cope with burnout,” according to Business Insider.
The millennial demographic is expected to outnumber the baby boomer generation, so this rising group’s spending habits will have a huge effect on the markets. For example, the millennials’ quick adoption of new technologies will help support tech companies and technology sector-related ETFs.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.