In an age where online trading is more accessible than ever, it’s unsurprising that there’s been a firm surge in younger people getting into portfolio building with ETFs.
Intriguingly, socially responsible and ethical ETFs seem to be some of the most appealing investments for younger people – with teenagers and traders in their 20s choosing to change the world from the comfort of their trading setups. But what is it about the best sustainable ETFs that appeal to younger demographics in the here and now?
It’s making a measured difference
We live in a rapidly-changing, often scary world where gross inequalities, local rights, environmental issues, and political injustices are more visible than ever before. Between social platforms and general mass media, it’s hard to miss what’s happening around us.
In that sense, younger generations perhaps have a duty to be more socially conscious than their predecessors. Therefore, they are aiming to create more ethical portfolios, ones that reflect their values. They’ve grown up with more access to information – and as they get old enough to try and make a difference, investing in measured ethical ETFs and other stocks allows them to make a genuine impact on societal aspects that matter to them.
ETFs are greener than ever
There are scores of green ETFs available to invest in – socially responsible investing, or SRI, is proving to be lucrative at either end of the scale. Companies that openly demonstrate their eco-friendly policies and where their money travels can make serious strides with a ‘woke’ demographic. Crucially, younger traders and, ergo, members of society are increasingly disillusioned with shady practices and few repercussions.
Companies that genuinely want to do good for society and the planet are not difficult to find. Younger investors can simply open an automated portfolio based heavily in socially responsible ETFs and use a robo-advisor to buy and sell in line with their risk attitude. This emerging AI tech aligns with the user-accessibility demanded by younger traders, who are accustomed to rapid-pace results and little hanging around.
Younger traders are educating themselves
Generation Z is reportedly deeply concerned with the state of the planet – and, as such, many young people are willing to educate themselves on how they can make a difference. The age of passive indifference appears to be on the way out – and with socially responsible ETFs, young traders can give back to causes they identify with and care about, while making money for their portfolios simultaneously. It’s a win-win situation.
While larger ETFs will always score interest regardless of policy and ethics, a tremendous swing towards ethical trading indicates that stock will need to prioritize eco- and socio-progressive openness for the years to come.
The argument is that younger traders are better informed about the state of the planet than anyone that came before them – but everyone else has access to the same tools! Could ethical trading be this generation’s ‘revolution moment’?
