Give millennials and Gen Z some credit. They appear to take health and wellness, including eating healthy, somewhat seriously. Investors of all ages can tap into those themes with some thematic exchange traded funds, such as the Global X Health & Wellness Thematic ETF (NASDAQ: BFIT).

BFIT recently turned three years old and tracks the Indxx Global Health & Wellness Thematic Index. The fund “seeks to harness the effects of changing consumer lifestyles by investing in companies geared toward promoting physical activity and well-being,” according to Global X.

BFIT helps investors access some important consumption trends among younger generations.

“For many Millennials, ages 23–38 by some definitions, and Gen Zers, 7–24, it’s simple. Processed food: Bad. Organic food: Good,” said Global X in a recent note. “It’s not just the health benefits of a largely plant-based diet to them, it’s also what that diet represents, i.e., a more humane, ecologically friendly lifestyle that speaks to who they are as people.”

Bank On BFIT ETF

BFIT holds 60 stocks. Importantly, the fund is sector agnostic and is not a traditional healthcare ETF in disguise. About 10 industries are represented in the fund and on a percentage basis, more than half of BFIT’s holdings reside in the consumer discretionary sector.

“According to one survey, Gen Zers (18+) are more than twice as likely to eschew animal protein and identify as vegetarians, vegans, or pescatarians than Gen X and Boomers. Even if not all in, 26% of Gen Zers say that eating less animal protein is a goal, more than Millennials (22%) and the national average (19%),” according to Global X research. “For younger Gen Zers, it’s what they’ve been taught: today, more than half of parents who are organic food consumers are Millennials.”

Data confirm the wellness is big business and a significant opportunity for investors.

“At roughly $4.2 trillion, wellness accounts for more than half of the $7.3 trillion in total global health expenditures. Key wellness segments include Personal Care, Beauty and Anti-Aging; Healthy Eating, Nutrition and Weight Loss; and Fitness,” according to Global X.Mindfulness is another segment already on the road to monetization.”

For more on thematic investments, please visit our thematic ETF channel.

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