A variety of data and research suggest the coronavirus pandemic is shifting how millennials spend and view money, but like any other generation, they still like some frivolities and indulgences. That bodes well for 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 latest luxury report from consulting firm Bain & Company shows that millennials around the globe will consume more than half of all luxury production by 2025, and the wealthy middle class will be the main force behind that consumption,” reports Jing Daily.
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.
Why GENY Matters
GENY’s roster is chock full of companies that are familiar to a variety of demographics as well as those that are embraced by Generation Z and millennials. Younger generations often flock to companies they identify with and view as socially responsible and many GENY holdings check both boxes.
Younger spenders “are paying more attention to a brand’s make-up, and they appreciate domestic brands that have interesting stories behind them. She also touched upon the importance of enjoying high-quality experiences when shopping in physical stores and how her shopping priorities have changed thanks to COVID-19,” notes Jing Daily.
Consumer habits will shape the way the economy will function moving forward, such as a growing gig-focused labor market and a reliance on renting.
Not surprisingly, GENY taps into millennials’ affinity for online shopping, proving that the demographic is a major driver of the move away from brick-and-mortar stores.
“The shopping experience at brick-and-mortar stores should be more immersive. It is necessary for brands to adopt digitalization and online delivery services,” notes Jing Daily.
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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.