The idiots excuse..."it seemed like a good idea at the time"
Millennials use low-cost ETFs more than any other age group and that usage increased 60 percent during the past three years, according to data from US broker TD Ameritrade. The younger you are, the more likely you are to use low-cost ETFs in your portfolio. Broker Charles W. Schwab Corp. has put out data with similar findings.
And while millennials have shown a taste for some exotic leveraged ETF's, when it comes to their core assets, they like cheap, too. In The U.S. the No. 1 ETF held by millennials is the Vanguard Total Market ETF, which charges 0.05 percent. In fact, six of the top 10 are bargain basement Vanguard ETF's. If this holds up, it will create a generational tsunami that will wipe out large parts of the revenue stream for established asset managers....particularly those that do not perform as hoped for.
All this is why BlackRock Inc., the world’s largest asset manager and ETF issuer, just hired Buzzfeed’s chief marketing officer. So don’t be surprised if you see an ad like this soon: "16 Incredible Low-Cost Fixed Income ETF's You Probably Don’t Know About But Definitely Should".