Exchange-traded funds (ETFs) have become increasingly popular among younger investors, particularly millennials and Gen Z.

Advantages of ETFs over traditional mutual funds

One of the main reasons for the growing popularity of ETFs is their advantages over traditional mutual funds.

• Lower costs: ETFs have lower associated fees compared to mutual funds, making them attractive to cost-conscious investors.
• Tax efficiency: ETFs are generally more tax-efficient and do not typically trigger capital gains taxes.
• Ease of trading: ETFs offer greater flexibility in trading, allowing investors to respond quickly to market movements.

As the number of ETFs available in the market continues to grow, young investors are encouraged to conduct thorough research and understand the tax implications associated with their trades.

The growth of retail investors in the ETF space

The growth of retail investors in the ETF space reflects a broader trend towards democratizing investment opportunities.

The demand for accessible and efficient investment options is likely to continue rising, and ETFs are well-positioned to remain popular among millennials and Gen Z investors.