Top 10 ETFs held by Millennials, Gen Xers, Boomers
Note: This article is courtesy of Iris.xyz
By TD Ameritrade
Since its inception 22 years ago, the exchange-traded funds (ETFs) market has expanded to provide investors exposure to a wide variety of equity markets.
Given their lower cost than actively managed mutual funds and inherent diversification, ETFs are also proving to be a smart way for younger investors to begin their investment journeys.
According to recent TD Ameritrade data, 14% of ETFs assets under custody are held by millennials. And while the three generations (Millennials, Generation X and Boomers) share some of the more common ETFs (VTI , SPY, QQQ) millennials are diversifying with real estate while Gen X and Boomers are more traditional and looking at gold. Millennials and Gen X are also lending more of a priority to emerging markets while Boomers are putting more money into growth and value.
Related: Global X Launches Millennials ETF on Nasdaq
With a constant threat of market volatility and risk, millennials are opting for emerging markets as they are projected to have higher returns over the long-term. Similarly, it seems boomers are moving away from traditional U.S. bonds, which are trading at historically low yields, and are choosing government bond ETFs.
According to the data, Gen X and Baby Boomers both show loyalty to the SPDR Gold Trust ETF (GLD) , as the world’s largest gold ETF is a top 10 ETF holding among both demographics.
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