E*TRADE Study Reveals the Varying ETF Preferences of Older and Younger Investors
Millennial investors are more interested in non-traditional ETFs, while Boomers gravitate to dividend and industry-specific ETFs
- Millennials are more likely than Boomers to show interest in a range of less maintream ETFs, includng commodity, style, and foreign currency ETFs.
- Boomers prefer dividend ETFs over any other type.
- The top three ETFs for the total surveyed investor population are U.S. market index ETFs, dividend ETFs, and sector- and industry-specific ETFs.
"The strong interest in U.S. market index ETFs suggests investors have faith in the domestic markets post-Brexit," said
- Dividend ETFs are popular for income: In a market characterized by uncertainty, geopolitical headwinds, and low fixed income yields, investors of all ages are turning to dividend ETFs as a possible source of income streams.
- Non-traditional ETFs gain traction as investors search for yield: In today's unprecedented low interest rate environment, investors hunting for yield are stalking an increasingly elusive prey, as traditional fixed income yields continue to be under pressure. Investors with larger risk appetites, like some Millennials, are looking to take advantage of lower prices in places like commodity and bond ETFs.
- ETFs focused on non-cyclical sectors can be used to mitigate risk: Sector-specific ETFs such as utilities, consumer staples, and REITs are seen as non-cyclical sectors that can help protect against market volatility, which can be particularly attractive to older investors nearing retirement.
Visit E*TRADE's Newsroom for the full Q3'16 StreetWise study results.
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About the Survey
This wave of the survey was conducted from
In what types of ETFs of are you most interested?
|U.S. market index ETFs||50%||48%||53%||49%|
|Sector- and industry-specific ETFs||32%||23%||30%||41%|
|Foreign market index ETFs||15%||16%||18%||13%|
|Style or market cap ETFs||12%||20%||13%||6%|
|Actively managed or smart beta ETFs||12%||13%||13%||10%|
|Foreign currency ETFs||9%||15%||10%||4%|
|ETNs (Exchange-traded notes)||5%||7%||6%||3%|
|Other (i.e. Vol ETFs, ETFs of ETFs, equal weight ETFs)||3%||2%||3%||3%|
|None of these||9%||4%||7%||14%|
|I don't know||10%||8%||12%||10%|
"Millennials" defined as age 25 - 34 // "Gen X" defined as age 35 - 54 // "Baby Boomers" defined as age 55+
The information provided herein is for general informational purposes only and should not be considered investment advice. Past performance does not guarantee future results. ETFC-G
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