The investment millennials are turning to instead of property

Millennials now make up 29% of all exchange traded fund investors in Australia, compared to 19% five years ago.

The number of Australians invested in exchange traded funds (ETFs) continues to rise, with more than 385,000 investors as of October 2018 representing a 20% increase for the year prior. Of these 385,000 Australians invested in ETFs, 29% are millennials which is up from just 19% in 2013.

An ETF is an investment product that tracks the performance of an index, for example the ASX200. ETFs are traded on an exchange like regular shares and offer investors instant diversification. “The ETF industry has continued to grow and mature in Australia, and we are seeing a marked decline in the age of the average investor as ETFs become more mainstream,” said CEO of Australian ETF issuer BetaShares Alex Vynokur.

“Investors continue to be attracted to the ease of access, diversification benefits and cost-effectiveness of ETFs. In addition, investors we have surveyed cite the ability to access overseas markets as a key reason for choosing ETFs as an investment vehicle.”

Vynokur said with property prices as high as they are, many millennials are looking for alternative ways to invest their savings. “Younger investors are being squeezed out of the traditional investment market in Australia, which is property. Young Australians are able to save, but certainly they’re not able to save enough for a house deposit,” he said.

To read more, please click on the link below….
Source: The investment millennials are turning to instead of property