Bonefide Wealth financial planner Douglas Boneparth also pointed out that millennials typically like to do their own research and have looked to ETFs asn an easy way to quickly diversify a portfolio.
“The bottom line is that this age group absolutely needs exposure to stocks in their investment portfolio, however it is important to manage both risk and costs which can take away from returns,” Halpern Financial certified financial planner Melissa Sotudeh, told TheStreet. “There is simply no reason to do it the hard way, since there are so many diversified ETFs available at low cost. Why not take advantage of them?”
Millennials have also exhibited a penchant for minute-by-minute updates through social media and their investments, which has also been a selling point for the ETF investment vehicle that is priced throughout the day.
“[ETFs] provide benefits over mutual funds, predominately the fact that they trade throughout the day so you know what you’re paying or receiving for a share,” Ryan Fuchs, Ifrah Financial certified financial planner, told TheStreet. “Whereas, mutual funds price out once per day after the market closes.”
For more information on ETFs, visit our ETF 101 category.