One of the things that the millennial generation is supposedly known for the most is enjoying avocados. But should they be known as the ETF generation?
Love For ETFs Growing… FAST!
According to a 2017 poll done by Huffington Post and YouGov, 57% adults aged 18 to 29 like avocados but only 28% said that they love them. In fact, 38% of 30 to 44-year-olds, 34% of 45 to 64-year-olds and 33% of 65+-year-olds said they loved avocados – all more than the younger generation!
Plus, only 6% of millennials actually said that had paid for avocado toast in a store or restaurant. Yet, when it comes to ETFs, millennials are the ones most excited by them.
CNBC reported a survey from financials business Charles Schwab showing that 79% of millennials considered ETFs the primary investment type for their future portfolios. This was the highest percentage of all respondents. The lowest category belonged to “matures” at 14%.
79% of millennials consider ETFs the primary investment type for their future portfolios – Schwab
More than half of millennials surveyed said that they had dumped all of their individual shareholdings and replaced that with ETFs.
ETF Market Growing Really Fast
According to Statista, in mid 2018 the global ETF market had grown to more than US$3.4 trillion – adding around US$3 trillion over a decade. Young investors are attracted to ETFs for low management fees and trading costs.
ETFs are certainly here to stay with almost every age group. The Charles Schwab survey noted that 96% of the 1,500 respondents said they considered ETFs a necessary part of their investments.
Millennials have benefited immensely from the rise of ETFs, considering the strength of the performance of the share markets over the past few years. In Australian dollar terms, the iShares S&P 500 ETF (ASX: IVV) has risen by 90.2% over the past five years, which doesn’t even include the benefit of dividends, particularly if those dividends had been re-invested.
What the love for ETFs and a reputation for loving avocados goes to show is that millennials actually have excellent taste in low-cost investments and healthy food. What’s not to like about that?
[ls_content_block id=”695″ para=”paragraphs”]
