Investing

Is an ETF Targeting Millennial Trends Too Late to the Party?

Jon C. Ogg

Published: May 10, 2016 2:22 pm

Last Updated: January 13, 2020 9:36 am

There is a new kid on the block in the world of exchange-traded funds (ETFs). It has been a common saying for years now that there is an ETF for just about any investing theme that investors can think of. A recent launch of the Global X Millennials Thematic ETF (NASDAQ: MILN) is a lot of what it probably sounds like.

The ETF has recently launched, with May 6, 2016 as its first day. It seeks to track the performance of the INDXX Millennials Thematic Index. Over 80% of its total assets are in securities within that index.

As far as what matters here, this ETF is loaded full of the companies listed in the United States which provide exposure to the millennial generation (birth years ranging from 1980 to 2000). Global X Funds says:

These companies come from a broad range of categories, including: social media and entertainment, food and dining, clothing and apparel, health and fitness, travel and mobility, education and employment, housing and home goods, and financial services.

Some of these holdings might be obvious, but others are not. 24/7 Wall St. wanted to look to see if this ETF would have been a far greater move a year ago. As such, the performance from capital gains (price) and income (dividends) has been incredible as you might have guessed. Here is a breakdown of the top ten holdings, by percentage of the fund, as of May 9 — along with a one-year total return:

• 3.36% AMAZON.COM INC. (NASDAQ: AMZN) – 1YR return 56%
• 3.33% FACEBOOK INC. (NASDAQ: FB) – 1YR return 52%
• 3.28% The WALT DISNEY CO. (NYSE: DIS) – 1YR return -3%
• 3.21% AVALONBAY COMMUNITIES INC. (NYSE: AVB) – 1YR return 15%
• 3.19% FISERV INC. (NASDAQ: FISV) – 1YR return 29%
• 3.16% EXPEDIA INC. (NASDAQ: EXPE) – 1YR return 10%
• 3.15% PAYPAL HOLDINGS INC. (NASDAQ: PYPL) – 1YR return n/a, 8% six month performance
• 3.14% LINKEDIN CORP. (NYSE: LNKD) – 1YR return -39%
• 3.12% EQUITY RESIDENTIAL (NYSE: EQR) – 1YR return 11%
• 3.10% The HOME DEPOT, INC. (NYSE: HD) – 1YR return 24%

As with almost all ETF launches (and closed-end funds) of this sort, its launch was at $15.00 per share. The Global X Millennials Thematic ETF has only traded since May 6, 2016. Its last price was $15.17, and its post-launch range has been $14.75 to $$15.17.