The coronavirus is reshaping how people spend and consumer trends that particularly clear among younger generations. That theme could benefit nuanced 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.
According to report by CNBC: “TruePublic found, for example, that 55% of those polled will return to restaurants “as soon as isolation ends,” compared to 16% who wait for a few months more before eating out, 13% who will wait until a vaccine is developed and 16% who will wait until “long after a vaccine is out.”
Why GENY Could Work Post-Virus
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.
Data confirm COVID-19 is prompting millennials and Gen Z to further their embrace of online shopping and e-commerce.
“The poll did find there’s a lot of online shopping in the meantime. Half of all respondents are engaging in e-commerce during the lockdown, and a full 34% plan to keep up the increased pace, according to TruePublic. See the results below,” according to CNBC.
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.
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.
GENY is up more than 26% over just the past month.
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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.