Millennials - population with birth years ranging from 1980-2000 - are slowly turning out to be the backbone of the U.S. economy, outpacing baby boomers in 2015 and reflecting over one quarter of the nation's population. By 2019, millennials will be America's largest population cohort per projections from the United States Census Bureau.
This makes it important to track their life goals, shopping patterns and investment preferences for investment purposes. This is a pretty diverse generation with ages ranging from 22 to 37, thus capturing various stages of lives from " post-college to starting a family ."
While there are pure-play millennial ETFs like Global X Millennials Thematic ETF MILN and Principal Millennials Index ETF GENY to tap this emerging trend, investors can also play the below-mentioned ETFs that revolve around millennials and their lifestyles.
Millennials indulge in social media. As per a report by Goldman Sachs Global Investment Research, 44% of millennials are into text messaging, 38% into both social media and instant messaging and 16% into blogging. The percentages are higher than any other generation.
Most of the millennials are busy and that's why shop online. They reportedly spend less time in grocery store s than baby boomers and Gen X shoppers. For obvious reasons, such preference patterns put Global X Social Media ETF SOCL , First Trust NASDAQ Smartphone ETF FONE and Amplify Online Retail ETF IBUY) in focus.
Broader Technology a Sweet Spot
On a broader level, millennials are tech savvy. As much as 50% of millennials play video games compared with 27% Gen X and 16% Boomers. About 45% are busy chatting compared with 31% Gen X and 10% Boomers.
Apart from these, downloading music/videos and watching TV online are part of millennials' routine. A Google study showed that 60% of millennials hold a smartphone while cooking.
Around 85% of the generation prefers artificial intelligence to manage their finances. As a result, PureFunds Video Game Tech ETF GAMR and PowerShares NASDAQ Internet ETF PNQI , iShares U.S. Technology ETF IYW , Robotics & Artificial Intelligence ETF BOTZ and ROBO Global Robotics and Automation Index ETF ROBO will catch investors' attention (read: Direxion Launches Leveraged Robotics ETF ).
Organic & Healthy Food Habits
Millennials are currently the driving factor behind organic produce sales. They are health conscious and aware of the importance in food standards and production methods. Such habits should bode well for G lobal X Health & Wellness Thematic ETF BFIT and The Organics ETF ORG (read: Amazon's Foray Into Grocery to Hurt/Help These Stocks & ETFs ).
Experiences Important Than Goods
Millennials are viewed as a class that prefers experiences to things. About 78% likes to shell out on experiences than on possessions, per a 2017 survey conducted by the Harris Group. So, PowerShares Dynamic Leisure and Entertainment Portfolio PEJ and SPDR S&P Transportation ETF XTN and U.S. Global Jets ETF JETS should go well with this fondness (read: ETFs & Stocks to Fly High on Record Spring Travel ).
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PWRSH-ND INTRNT (PNQI): ETF Research Reports GLBL-X SOCL MDA (SOCL): ETF Research Reports SPDR-SP TRANSPT (XTN): ETF Research Reports GLBL-X H&W THM (BFIT): ETF Research Reports PACIFIC (EX: JA (PEJ): ETF Research Reports ROBO GR&AI (ROBO): ETF Research Reports FT-NDQ SMARTPHN (FONE): ETF Research Reports ISHARS-US TECH (IYW): ETF Research Reports US GLOBAL JETS (JETS): ETF Research Reports GLBL-X MILL THM (MILN): ETF Research Reports PRIN-MILLNLS (GENY): ETF Research Reports PF-ISE ELEC GMG (GAMR): ETF Research Reports ORGANICS ETF (ORG): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report