Global X Funds Launches Millennials Thematic ETF

May 5th, 2016 | By | Category: Equities

Exchange-traded fund provider Global X Funds has launched a new ETF offering exposure to companies best positioned to benefit from Millennials, those aged 16-36, entering their peak earning years. The Global X Millennials Thematic ETF (Nasdaq: MILN), tracking the Indxx Millennials Thematic Index, is the ninth ETF in Global X’s suite of thematic funds, and the first in its ‘People’ category, which focuses on emerging trends pertaining to changing demographics and consumer behaviour.

Global X Funds Launches Millennials Thematic ETF

Jay Jacobs, Director of Research at Global X.

There are over 90m Millennials in the United States, making it the largest generation in the country. Millennials currently earn roughly $2tn in income, and are poised to earn roughly $8tn by 2025. Additionally, the total transfer of wealth from Baby Boomers to Millennials is expected to reach $40tn.

“As Millennials enter their prime earning years, companies that cater to their unique spending preferences are expected to gain market share,” said Jay Jacobs, director of research of Global X. “These companies can come from a broad range of industries and hit on a variety of sub-themes inherent with millennials, such as the use of social media, consumption of digital content, a focus on health and wellness, and investment in education and career advancement, among many others.”

The fund has a total expense ratio of 0.68%.

According to Global X, thematic investments aim to access the high growth potential of companies at the forefront of a long-term, structural changes in the economy. By transcending classic sector and industry classifications, thematic investing seeks to harness macro-level trends and the investments best suited to benefit from those trends.

“Thematic investing is a research-driven approach that has long been available to institutional investors seeking growth opportunities,” added Jacobs. “At a time of weak earnings and low GDP growth, we’re excited to broaden our growth-seeking thematic suite of ETFs to now include strategies that seek to benefit from substantial shifts in demographics and consumer behavior.”

Global X plans to further expand the ‘Thematic – People’ category with launches of the Global X Longevity Thematic ETF (Nasdaq: LNGR) and the Global X Health & Wellness Thematic ETF (Nasdaq: BFIT) expected next week.

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