Monday, June 15, 2015

The Age of ETFs

Are you a fan of exchange-traded funds, or ETFs? Your answer may depend on your age. That's the upshot of a study from TD Ameritrade, which showed that younger investors are much more likely to include ETFs in their portfolios than older ones.

For investors aged 26 to 35 who have accounts with TD Ameritrade, 14 percent of their assets are tied up in ETFs.  Among their parents' generation - those aged 56 to 65 - those investors have just 7 percent of their assets in ETFs.

It may be as simple as the fact that the younger group is the first to have grown up with ETFs always being an investment choice. iShares, now the leader in this category, didn't even put it first product on the market until 2000.

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