Exchange traded funds, or ETFs (Exchange Traded Funds), are increasingly attracting a young audience in France, thus revolutionizing the landscape of investments in financial markets. But how and why do they manage to appeal so much?
ETFs are now attracting young people
Recent data from the Financial Markets Authority (AMF) shows a significant decrease in the average age of ETF holders in France.
The majority of new investors in these financial products are now under the age of 35.
Investor demographics are getting younger, with the average age having dropped to 48 in 2023, from over 60 just five years ago. In 2023, 56% of ETF holders were under the age of 35, illustrating a dynamic shift towards a new generation of investors.
In total, there are more than 200,000 active investors who chose ETFs in the first quarter of 2024. The number of ETF transactions exceeded one million in the same quarter. This clearly indicates a paradigm shift in the choice of investments by young people.
Why this craze for ETFs?
The AMF highlights a remarkable development: the number of new investors has more than doubled, leading to a historic first of more than a million transactions on European ETFs.
ETFs offer several advantages that make them particularly attractive for the new generation of investors, but you still need to know how to choose your ETF. Easily tradable on the stock market, these funds also have ultra-competitive fees, two characteristics valued in particular by investment novices.
- Accessibility: Low initial cost and possibility of purchasing through online platforms.
- Management : You don’t have to manage your portfolio on a daily basis.
- Diversification: Exposure to a more or less wide range of assets through a single product.
- Flexibility: High liquidity which allows you to sell and buy easily (depending on the fund’s conditions).
The ETF craze shows no signs of slowing down in 2024, with a spectacular 36% increase in the number of individuals active in the market in the first quarter. These financial instruments, which replicate stock market indices, now attract 216,000 individual investors, an impressive figure.
A future dominated by ETFs?
As the market continues to adapt to the preferences of younger investors, ETFs may well play a central role in financial education and long-term investment planning.
The growing adoption of these funds is a testament not only to their accessibility but also to their ability to meet the needs of a new generation that values delegation, flexibility and economic efficiency.
