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More young Australians are investing in Exchange Traded Funds

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young guy ASX 738

The average age of Exchange Traded Fund investors has dropped by 20 years since 2011.

The Australian Exchange Traded Fund (ETF) industry has grown by 31% in one year alone, with 265,000 active investors up from 202,000 the previous year, according to the BetaShares/Investment Trends ETF report released today.

Furthermore, the report projects that a record number of 315,000 investors intend to make an ETF investment in the next 12 months.

ETFs are no longer only popular among retirees; the average age of those who began investing in ETFs in the past year is 39, down from 58 only five years ago.

Interestingly, over one third (37%) of online platform investors who currently use or intend to use ETFs in the coming year are millennials.

ETFs own a range of assets, such as shares, bonds and foreign currency, and divide ownership of these into shares, which then trade like a common stock on a stock exchange.

The report revealed 43% of Australia's financial planners currently advise on EFTs, citing low cost and diversification as the top benefits.

BetaShares managing director Alex Vynokur says, “No longer a niche investment vehicle, ETFs now provide low-cost, liquid and transparent access to a diverse range of asset classes and exposures.”

“In line with the growth we are currently seeing, we project the industry will hit $30-$33 billion in funds under management, with approximately 250 exchange traded products, by the end of 2017,” said Vynokur.

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