When it comes to betting on a 2021 recovery, ETF investors shouldn’t leave out the economic force millennials are packing. With positivity surrounding a vaccine and a sense that some pre-pandemic normalcy might be around the corner, millennials could lead the charge towards an economic bounce-back.
Savvy ETF investors sensing an opportunity may 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. The fund offers:
- High Growth Potential: MILN enables investors to access high growth potential through companies at the leading edge of a long-term, structural demographic trend affecting multiple sectors of the economy.
- An Unconstrained Approach: MILN’s composition transcends classic sector and industry classifications by tracking an emerging theme.
- ETF Efficiency: In a single trade, MILN delivers access to dozens of companies with high exposure to the Millennial theme.
MILN has been a stellar performer even amid the pandemic, with a year-to-date gain of 35% per Morningstar. In fact, since its inception in 2016, the fund has churned out an annualized return of about 18%.
The fund gained steam after the pandemic sell-offs in March, surpassing its 200-day moving average, and then later on, its 50-day moving average by mid-May.
What Can Millennials Offer?
From a fundamental perspective, more upside could be ahead with more millennials ready to open up their wallets amidst a recovery. The wild card in the markets, of course, is still the pandemic, but more tailwinds from a vaccine rally could boost MILN.
“Encouraging vaccine news has Wall Street searching for stocks to play the rebound—scouring the market for names that have been beaten up amid the pandemic but poised to boom once things return to normal,” a Fortune article noted. “Katie Koch, cohead of fundamental equity at Goldman Sachs Asset Management, is feeling bullish on trades that bank on a surge in pent-up demand among an increasingly powerful cohort of spenders: Millennials.”
For more news and information, visit the Thematic Investing Channel.