##  [# The Great Wealth Transfer Will Benefit ETFs: Here’s Why](/sections/conferences/great-wealth-transfer-will-benefit-etfs-heres-why) 

 

# The Great Wealth Transfer Will Benefit ETFs: Here’s Why

 

 

Millennials are leading the ETF charge, showing equal interest in active and passive strategies, confident in their ability to beat the market. Find out why the generational wealth transfer will drive increasing capital to ETFs and how younger generations are positioning portfolios.



 

 

 

 

 [![ETF.com](/sites/default/files/styles/author_image_icon/public/2023-12/etf.com_400x400.png?itok=LO34LQE1)](/contributors/etfcom-staff) 

[By ETF.com Staff](/contributors/etfcom-staff)

 Dec 09, 2025

 Edited by: ETF.com Staff

 

 

 [ + Follow ](/etf/login) 

     Share  <a class="a2a a2a_button_email"> Email </a><a class="a2a a2a_button_linkedin"> LinkedIn </a><a class="a2a a2a_button_facebook"> Facebook </a><a class="a2a a2a_button_x"> X (Twitter) </a> 

 

 

 

 

 

 

 

 

  
            googletag.cmd.push(function() {
                googletag.display('js-dfp-tag-article_page_302x26');
            });
    
    

 

 

  

 



 

 

  Loading 

 

 



 
            let duration = 0, percent = '0', new_percent = '';
            jwplayer("etfVideo").setup({
                playlist: "https://cdn.jwplayer.com/v2/media/zikpZ1h4",
                aspectratio: "16:9",
                autostart: "viewable",
                ga: {}
            });
            jwplayer().on('time', function(e) {
                duration = e.duration
                if (e.position >= duration * 0.25){
                    percent = '25';
                } 
                if (e.position >= duration * 0.50){
                    percent = '50';
                } 
                if (e.position >= duration * 0.75){
                    percent = '75';
                } 
                if (e.position == duration){
                    percent = '100';
                }
                if (new_percent != percent){
                    // GTM Datalayer - Video Event
                    dataLayer.push({
                        'event': 'video',
                        'video_id': 'zikpZ1h4',
                        'video_percent': percent,
                        'video_url': 'http://www.etf.com/markdownify/node/134275' 
                    });
                    new_percent = percent;     
                }
            });
         

 



 

 

Schwab recently announced the results of their annual [**ETFs and Beyond Study**](https://www.schwabassetmanagement.com/content/etf-investor-study) at the Schwab IMPACT 2025 conference in November. David Botset, Head of Strategy, Innovation, &amp; Stewardship at Schwab, sat down with ETF.com's Dave Nadig to talk the findings of the survey, and emerging investor trends.

## Transcript

**Nadig:** David Botset, Schwab Asset Management, thanks so much for joining us. Amazing event here, which has become huge. How many folks are here?

**Botset:** I think there's over 5,000 when you include the over 2,500 RIAs, the exhibitors, asset managers, the FinTech firms. It's an amazing event.

**Nadig:** And so many FinTech firms. I mean, we were just talking, there's like booth after booth after booth with all sorts of innovative solutions for everything from portfolio rebalancing to tax problems to alternatives access. I mean, people are doing all sorts of great stuff, all integrating inside your platform.

**Botset:** That's right. And we need to be able to integrate all of those technologies into our platform to help RIAs serve their clients.

 
            googletag.cmd.push(function() {
                googletag.display('js-dfp-tag-in_article_unit');
            });
    
    

 

 

## ETFs Gain Traction With Greater Use Cases

**Nadig:** Well, I want to turn to the survey because one of the things that was so surprising to me was that it seemed very forward, meaning you look at what investors are looking at. It's not like they don't want target date funds and 60/40 portfolios. They're actively talking about active management, cryptocurrencies, single stock ETFs. Were you surprised by some of the results in the survey?

**Botset:** You know, some of it we're surprised with, but much of it is a continuation of what we've seen in the past. We've been doing this survey for over a decade, right? This is our 14th year. So, it's kind of this wave of growth of ETFs. The momentum continues to build. It's just that ETF investors are using ETFs in different ways. You talk about crypto, you talk about active. The one thing that we're encouraged by for investors is that over half of them indicated they're using ETFs to build core portfolios or core with a satellite allocation. We love to see that because we think it really helps them build their wealth for the future.

**Nadig:** I love the core satellite approach, but I was I was honestly shocked at how aggressive some of the satellite was. You know, over 50% of folks in the millennial generation looking at things like crypto, looking at active management, seemingly completely ambivalent about active versus passive. I think both 65% of investors on both sides said, "Yes” to “Yes, I'm looking at passive. Yes, I'm looking at active." That's a big shift. How do you think about that at Schwab Asset Management because that's intel for you as well?

**Botset:** It it is, but I would go back to, we've been in this industry a long time. ETF used to be a synonym to index investing. That's no longer the case. We've broken that mold apart, and active is becoming much more accepted in the ETF landscape.

I'd go back to your comment though about crypto, single stock. The other thing we see with millennials that came out in the survey is when we asked them what their allocation looked like, yes, they may be using crypto or single stock, but they also indicate they're having a larger fixed income allocation. So, it kind of offsets some of the risk they're taking on that side of the portfolio.

## The Confidence of Younger Investors

**Nadig:** Yeah, and you never know when they say, "I'm interested in crypto," whether that's for 1% of their portfolio or all their portfolio, right? So you can't tease that apart, but one thing that was very clear is when you ask the different generational cohorts, and this is a pretty big study, 2,000 sample size. And you ask them like what their confidence level was in beating the market, something like 68-9% of millennials said, "I think I can beat the market." Did that surprise you, or is that consistent with what you've seen?

**Botset:** It's consistent with what we've seen in the past, right? That that younger generation has that level of confidence that they can do and meet their long-term objectives. You know, some of that may be due to the fact that they haven't seen a significant long-term downturn in the marketplace that the older generations have seen. So, we'll see if it continues forward.

**Nadig:** The other thing I find interesting about your truly, it's a tracking study at this point, is, you know, I've been a Schwab customer since the 80s, and you've really grown with the boomers and then with Gen X and then with millennials. So, you've kind of had this long-term history with every cohort. Now that that baby boomer generation, you know, famously is handing down trillions of dollars, $32 trillion, if you believe the stats. Obviously, most of that money's going to end up at the, you know, younger end of Gen X and millennials when it gets handed down. How do you think that changes now that we know all this about millennial investors who are about to get pretty wealthy?

**Botset:** They are going to get wealthy with that generational transformation. But I think it's an indication of where they're likely to put their assets and their dollars going forward. One, using ETFs more significantly. Focus on cost, right? That's another thing that comes out in this study is, "I want to keep cost low in my portfolio." So, that's the one thing I can always control, and I think we're going to continue to see that, whether it's index or it's active.

## Emergent ETF Trends 

**Nadig:** Is there any piece of this that truly was surprising where you saw a shift in the last couple years that you think is notable?

**Botset:** I think the big thing is just the use of some of the more niche thematic areas in portfolios. That clients are looking for those opportunities to personalize their portfolio in some form or fashion based upon their specific investment views.

**Nadig:** Well, and you had a couple of very specific questions around direct indexing, which Schwab has been a big mover in, right, particularly in getting it closer down to the retail level. What's the move there? Have you been aggressively working with that audience to show them the benefits of direct indexing? Is this really a new effort for you all, focusing on this part of the market?

**Botset:** It's not a new. We've always sought to democratize investing, bring down the cost and the accessibility of investing. I think that direct indexing world, the Schwab Personalize Indexing, allows for even greater personalization in a client's portfolio, but you're doing it in a cost-controlled way, you're doing it indexed and a tax-efficient way.

**Nadig:** Well, great. David, it's been great catching up. Thanks so much for spending some time with us.

**Botset:** Thanks so much for your time.

*Discover the news, data, and voices shaping the ETF community. Follow along* [***here***](https://www.etf.com/topics/active-management)*.*



 

 

 [ + Follow ](/etf/login) 

 [ETF.com Staff](/contributors/etfcom-staff) 

 

 

  etf.com is the single source for ETF intelligence. We provide real-time ETF news and analysis to educate investors and drive financial knowledge in…   [View Bio](/contributors/etfcom-staff)

 



 

 


 Related Topics  [Fixed Income](http://www.etf.com/topics/fixed-income) 

 [Bond](http://www.etf.com/topics/bond) 

 [Active Management](http://www.etf.com/topics/active-management) 

 [ETF.com Videos](http://www.etf.com/topics/videos) 

 [Crypto](http://www.etf.com/topics/cryptocurrency)