As the population ages, the changing of the guard into luxury goods will see more millennial buyers. Bain & Company is forecasting that over 50% of millennials will be lux goods’ primary consumers in the next five years.
“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,” a Jing Daily article said. “But that segment will remain cautious about luxury spending, putting more emphasis on brand values and shopping experiences. This change in consumer mindset occurred before COVID-19, but the pandemic has amplified the shift. Therefore, overseas brands that are struggling in the Chinese market must pay attention to these changes and the social dynamics surrounding them.”
Exchange-traded fund (ETF) investors sensing an opportunity could consider the Global X Millennials Thematic ETF (MILN). MILN seeks to provide investment results that correspond generally to the price and yield performance of the Indxx Millennials Thematic Index.
In the case of MILN, the underlying index is designed to measure the performance of U.S. listed companies that provide exposure to the millennial generation, (collectively, “Millennial Companies”), as defined by the index provider. The millennial generation refers to the demographic in the U.S. with birth years ranging from 1980 to 2000.
For traders looking for retail trade, they can opt for the following funds:
- SPDR S&P Retail ETF (NYSEArca: XRT): seeks to provide investment results that correspond generally to the total return performance of an index derived from the retail segment of a U.S. total market composite index. The index represents the retail segment of the S&P Total Market Index (“S&P TMI”).
- Amplify Online Retail ETF (NasdaqGM: IBUY): seeks investment results that generally correspond to the price and yield of the EQM Online Retail Index. The index seeks to measure the performance of global equity securities of publicly traded companies with significant revenue from the online retail business. The index methodology is designed to result in a portfolio that has the potential for capital appreciation.
- ProShares Long Online/Short Stores ETF (CLIX): seeks investment results, before fees and expenses, that track the performance of the ProShares Long Online/Short Stores Index (the “index”). The fund invests in financial instruments that ProShare Advisors believes, in combination, will enable the fund, before fees and expenses, to track the performance of the index. The index consists of long positions in the online retailers included in the ProShares Online Retail Index and short positions in the “bricks and mortar” retailers included in the Solactive-ProShares Bricks and Mortar Retail Store Index.
For more relative market trends, visit ETF Trends.