4 ETF Ideas to Follow Millennials' Lifestyle

Shutterstock photo

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.

Go Online

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 ).

Want key ETF info delivered straight to your inbox?

Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.  Get it free >>

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

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , ETFs
Referenced Symbols: PNQI , SOCL , XTN , BFIT , PEJ

More from Zacks.com




Equity Research

Research Brokers before you trade

Want to trade FX?