Millennials are a powerful force when it comes to consumer cyclical spending and consumer trends and those shifts are accessible via dedicated ETFs, such as the Global X Millennials Thematic ETF (NasdaqGM: MILN).
MILN, which is nearly four years old, tracks the Indxx Millennials Thematic Index. Member firms “come from a broad range of categories, including social media and entertainment, food and dining, clothing and apparel, health and fitness, travel and mobility, education and employment, housing and home goods, and financial services,” according to Global X.
With older millennials now approaching their 40s and peak earning years, long-term investors may want to consider MILN.
“Over the past few years, the Millennial generation has matured from primarily a cohort of cash-strapped students to one that makes up the majority of the US workforce and is a powerful consumer group,” said Global X in a recent note. “And like a glacier carving out the side of a mountain, the 90 million-person strong generation is are slowly, but surely making an indelible mark on the world’s largest economy.”
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.
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.
Central to the MILN thesis is the ETF’s broad-based approach to capturing the millennial spending opportunity set.
Thematic investments aim to access the high growth potential of companies at the forefront of long-term, structural changes in the economy. By transcending classic sector and industry classifications, thematic investing seeks to harness macro-level trends and the investments best suited to benefit from those trends.
MILN member firms “come from a broad range of categories, including social media and entertainment, food and dining, clothing and apparel, health and fitness, travel and mobility, education and employment, housing and home goods, and financial services,” according to Global X.
For more on thematic ETFs, please visit our Thematic Investing Channel.
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.