ETFs the 'starting point' for Millennials

Almost 40 per cent of first-time ETF investors are Millennials, according to new research by BetaShares and Investment Trends.

BetaShares and Investment Trends have launched a joint report that examines the attitudes of people who are currently invested in (or considering) ETFs.

According to the report, the average age of ETF investors had dropped: the average age of those who began investing in ETFs five years ago was 56, whereas the average age of those who began investing in ETFs 12 months ago was 42.

Furthermore, Millennials were found to have the greatest appetite for ETFs, with the report revealing this demographic made up 38 per cent of online investors currently or intending to use ETFs.

Speaking in Sydney on Wednesday, BetaShares chief executive Alex Vynokur indicated ETFs were a point of entry into the investment world for younger generations.

“Something we look at is: what holds people back from investing? And the number one thing people tend to say is: ‘I don’t know what to invest in,” Mr Vynokur said.

“So ETFs, in a sense, come around and solve that problem for millennials.”

He added that economic factors such as the “very low interest rate environment” as well as a lack of housing affordability had led younger investors to “rethink about their wealth creation strategies” and attract them to the ETF industry.

To read more, please click on the link below…

Source: ETFs the ‘starting point’ for Millennials – InvestorDaily