Millennials have a healthy optimism when it comes to the capital markets. While “healthy” is certainly debatable depending on who you ask, the 10 to 37-year-old age bracket is expecting the highest return on their investments over the next five years.
“Even with the economic downturn caused by the coronavirus pandemic, millennials are still the most optimistic of any age group about the investment returns they expect in the coming years, a survey has found,” a CNBC report stated. “Millennials anticipate an annual total return of nearly 12% on average from their entire investment portfolio over the next five years.”
The data came amid the market panic and uncertainty caused by Covid-19. As such, millennials remained optimistic about the stock market’s prospects moving forward despite any negative ramifications the pandemic poses.
“This was the finding of Schroders’ 2020 global investor study, an online survey which it commissioned, polling 23,450 investors around the world between April and June,” the CNBC report added. “It categorized millennials as those aged 18 to 37-years-old.”
One notable found in the data was the older the age group, the less optimistic they were. Given the data, it’s difficult to dispel the myth of a grump, old investor.
“In fact, the older the age group, the slightly less optimistic investors became,” the CNBC report added. “Generation X, those aged 38 to 50-years-old, predicted they could generate nearly 11% annually from their investments, while baby boomers (aged 51-70) expected nearly a 10% gain on their money each year. The silent generation (aged 71 and over) believed their funds could grow by close to 10% annually.”
Savvy ETF investors sensing an opportunity could consider the Global X Millennials Thematic ETF (MILN ). MILN seeks to provide investment results that correspond generally to the price and yield performance of the Indxx Millennials Thematic Index.
In the case of MILN, the underlying index is designed to measure the performance of U.S. listed companies that provide exposure to the millennial generation, (collectively, “Millennial Companies”), as defined by the index provider. The millennial generation refers to the demographic in the U.S. with birth years ranging from 1980 to 2000.
Whether looking for 12% returns or not, investors can opt for the Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC ). GSLC seeks to provide investment results that closely correspond to the performance of the Goldman Sachs ActiveBeta® U.S. Large Cap Equity Index, which is designed to deliver exposure to equity securities of large capitalization U.S. issuers.