5 Millennial Friendly ETF Investing Ideas

Millennials –  population with birth years ranging from 1980–2000 – are increasingly hogging the attention of the investing world. And why not? After all, this cohort seems to be a key growth driver of the U.S. economy, outpacing baby boomers in 2015 and reflecting over one quarter of the nation’s population.

As this group has the prospect of comprising 75% of the workforce by 2025, it surely emerges as a long-term investing bet. As per research by Global X, millennials now earn about $2 trillion, with income projected to grow to $8 trillion by 2025.

While there are pure-play millennial ETFs namely Global X Millennials Thematic ETF (MILN - Free Report) and Principal Millennials ETF (GENY - Free Report) to tap this emerging trend, investors can also tap the below-mentioned ETFs which revolve around millennials.

Look for Value

Millennials are deemed to be value conscious. This part of the population has seen many upheavals in the global equity market including the dot.com bubble burst in 2000, the fall of Lehman Brothers in 2008, and the resultant recession and the Euro zone debt crisis in 2011.

It is not surprising that the backlash of such recessionary events made the large part of this class edgy, value-driven and looking for what’s being sold at bargains. A survey by TD Bank Group shows that about 37% of millennials not at all investing. Even Goldman Sachs confirmed the fact by indicating “lower employment levels and smaller incomes have left younger Millennials with less money than previous generations.”

Thus, value ETFs, especially those that offer solid dividend yields, should be intriguing picks for Millennials. Our pick is PowerShares S&P 500 High Dividend Low Volatility Portfolio ETF (SPHD - Free Report) yielding about 3.30% annually with a P/E ratio of 16.7 times, almost in line with the P/E of SPY at about 16.23 times.

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