Exchange-traded funds have exploded in popularity over the past decade, especially among millennials and Gen X investors who see them as low-cost and less risky way of building wealth. Baby Boomers aren’t nearly as enthusiastic as the younger generations, though, according to Charles Schwab’s 2025 ETFs and Beyond study.

The study shows that 66% of millennials say they could imagine moving to an ETF-only portfolio, whereas only 15% of Boomers say the same. And in the next year, 32% of Millennials say they expect to increase ETF investments, while only 6% of Boomers plan to do so. This is understandable, since older generations built their portfolios through mutual funds, employer plans and individual stocks long before ETFs were mainstream. That familiarity makes it harder to switch, even when ETFs might offer similar exposure at a lower cost.

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Another reason for the gap may be the way each generation thinks about risk and investing strategy. The study found that younger investors tend to feel more comfortable investing in a broad range of specialty ETFs and are more confident about their ability to outperform the market. Plus, 54% of millennials say they’re tactical investors who make trades to take advantage of market opportunities, whereas only 29% of Boomers say the same.

Interestingly, Boomers actually care more about minimizing investment fees than younger investors, which you’d think would make ETFs an easy sell. Many ETFs come with low expense ratios, sometimes much lower than comparable mutual funds. But for Boomers, cost alone isn’t enough to prompt a switch.

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The generational gap also reflects the environment in which each group started their investment journeys. Millennials and Gen X grew up with online brokerages, zero-commission trading and robo-advisors. Boomers didn’t. For them, mutual funds are still the most familiar choice, and switching now just feels unnecessary and risky.

If you identify as a Boomer and are interested in ETFs but not quite convinced, start by testing the waters and adding a single broad-market ETF alongside your existing mutual funds to see how the fees, performance and flexibility compare. If you work with a financial advisor, ask them to walk you through the tax implications, cost differences and whether an ETF could replace a pricier fund you already own.