Generation Z ETF is shunned by investors
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Investors donât appear to have much faith in the Gen Z group as a centerpiece for investment decisions. Just look at the performance of the Alpha Architect ETF Trust - The Generation Z ETF (NASDAQ:ZGEN). The fund ranks among the worst-performing actively managed exchange traded funds in 2022, falling 22% so far this year.
Aside from its dismal 2022, the exchange traded fund has flopped since its launch back on Dec. 16, as the fund is down 23.2%. Putting ZGENâs returns into perspective, the Nasdaq (COMP.IND), which has had its own struggles, has posted a decline of 10.5%, less than half the retreat seen by ZGEN since Dec.16. 
According to the fund, ZGEN offers investors exposure to stocks that are born after the internet and whose use, values, disruptiveness and innovativeness align with the 2.5B Generation Z individuals.
The thematic fund may one day take advantage of the future growing Gen Z market that captures innovation and disruption. However, with the prospect of higher interest rates causing investors to look cautiously at speculative ventures, the stocks favored by ZGEN have fallen out of favor. As such, the fund has accumulated less than $5M assets under management in two monthsâ time.
Currently, ZGEN trades at $19.44 a share and has an expense ratio of 0.60%. The fund comes with 51 holdings led by Tesla (NASDAQ:TSLA), Snap (NYSE:SNAP), and Duolingo (NASDAQ:DUOL). Those holdings have a weighting of 4.47%, 4.26% and 4.02%, respectively.
See below chart of ZGEN and the Nasdaq dating back to the fund's launch.