The coronavirus pandemic is crimping consumer spending across an array of demographics, but the reduced spending is particularly acute among millennials. Those near-term hurdles should give way to long-term opportunity with 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 2020 Consumer Culture Report, which was published earlier this year, focused “on Millennials, who are expected to spend $1.4 trillion this year. Per Women’s Wear Daily, Millennials now make up the largest segment of the workforce, the most common users of social media, and are most likely to buy online,” reports Caitlin Mullen for Bizwomen.
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.
GENY Could be Genius Move
GENY is levered to technology and social media trends and venues that are popular with millennials and vital in terms of accessing this prized demographic.
“Millennials are more likely than other generations to say online ads, Instagram or YouTube influencers, celebrities, articles or blogs, or podcast sponsors have some influence over their purchasing decisions, per the report,” according to Bizwomen. “Facebook was the top social media platform across all age groups, but of those influenced by Instagram, 94 percent have clicked, shared or bought a product they saw on that platform, the report found.”
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.
A report out Tuesday from the Commerce Department said online retail sales surged 31.8% year-over-year in the second quarter and that e-commerce accounted for 13.1% of all U.S. retail sales during the April through June period.
“The Census Bureau of the Department of Commerce announced today that the estimate of U.S. retail e-commerce sales for the second quarter of 2020, adjusted for seasonal variation, but not for, was $211.5billion, an increase of 31.8percent(±1.2%) from the first quarter of 2020,” according to the report.
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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.