The Economy Is Shifting to Digital Natives: Markets Are Following
April 09, 2026
Read Time 4 MIN
Key Takeaways:
- Gen Z was born into digital finance. 93% use P2P payment apps and cash preference has collapsed to just 7%.
- Three pillars define how this generation lives. GENZ covers digital finance, gig platforms, and online sports betting equally.
- Sports betting shows the scale of this shift. U.S. online betting revenue exploded 55x in just seven years.
Meet the Consumer Who's Never Written a Check: The Case for the Digital Native Economy
There are 145 million of them in the United States. They are the largest spending cohort in the country's history. And they have never walked into a bank branch to open an account.
Gen Z and younger millennials, roughly anyone born between 1981 and 2012, didn't adopt the digital economy. They were born into it. Their first financial account was an app. Their first job was on a platform. Their first bet was placed on a phone. The economy they participate in looks almost nothing like the one their parents navigated.
Today, VanEck is relaunching the VanEck Digital Native Economy ETF (GENZ) formerly the VanEck Gaming ETF (BJK) to capture this structural shift. GENZ seeks to track the MarketVector Digital Native Economy Index (MVGENZTR), a benchmark organized around three segments of the economy that these consumers have reshaped from the ground up.
Why the Digital Native Economy Is Here to Stay
We have been watching this transition unfold for years, but the numbers now make it impossible to ignore:
- 93% of Gen Z and younger millennials use P2P payment apps. Cash preference has collapsed to just 7% (Source: Billtrust as of 2025).
- The gig economy is growing 3x faster than the traditional workforce, with Gen Z leading the charge (Source: Fortune as of 2025).
- 34% of this cohort bets online regularly. U.S. sports betting revenue has exploded from $248 million in 2017 to $13.7 billion in 2024 a 55x increase in seven years (Source: Transunion as of 2025).
These aren't behavioral quirks. They are the permanent financial habits of a generation that has never known anything different. The companies built to serve them, neobanks, gig platforms, digital betting operators are not disrupting incumbents. They are the incumbents for this cohort.
From BJK to GENZ: Aligning with a New Consumer Reality
We launched BJK in 2008 to capture the global gaming and leisure sector. It served investors well for nearly two decades. But the world has changed.
The most interesting growth in consumer behavior is no longer confined to gaming. It runs across three distinct pillars of digital-native life and the companies driving that growth increasingly don't fit inside a "gaming" label. We needed a broader, more accurate lens.
That lens is the digital native economy.
The Three Pillars of GENZ
The MarketVector Digital Native Economy Index organizes this economy around three segments:
1. Millennial Finance
Traditional banking never got the same foothold with this generation. They discovered finance through apps like Venmo, Cash App, Robinhood and Affirm. Neobanks and fintech platforms now handle billions in daily transactions with no physical presence. The index captures companies across:
- Digital payment networks and peer-to-peer transfer platforms.
- Buy-now-pay-later providers and digital lending.
- App-first brokerage and investing platforms.
2. Gig Economy & Online Forums
Work, for this generation, is not entirely 9-to-5. It's a gig, a freelance contract, a creator monetization deal. Platforms like Fiverr, Etsy, and Reddit don't just connect buyers and sellers, they are the economic infrastructure for tens of millions of people who earn, transact, and build community entirely online. The index captures:
- On-demand labor and freelance marketplace platforms.
- Creator economy and community commerce companies.
- Online forum and social commerce operators.
3. Digital Sports Betting & Video Game Developers
Sports betting has gone from niche to mainstream faster than almost any consumer category in history. Since the Supreme Court struck down federal betting restrictions in 2018, state after state has legalized online wagering. Online operators now generate tens of billions in annual revenue and are among the fastest-growing digital consumer platforms in the country. The index includes:
- Online sports betting operators and iGaming platforms.
- Fantasy sports and digital wagering companies.
- Technology providers enabling regulated online gambling.
- Video game developers.
- Sports data and analytics services.
How the Digital Native Economy Index Works
The MarketVector Digital Native Economy Index applies a rules-based methodology to identify and weight companies across all three segments. Eligible constituents must:
- Derive at least 50% of revenues from digital-native economy activities (25% for existing index components).
- Meet minimum market capitalization and liquidity thresholds.
- Be listed on a US exchange.
The index is rebalanced quarterly and reconstituted on a defined schedule, ensuring the portfolio stays current as companies and market dynamics evolve. Each of the three tiers carries an equal weight of approximately 33.3% at rebalance, with individual security weights capped at 8% to manage concentration risk.
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GENZ Brings Consumer Layer to VanEck's Thematic ETF Suite
GENZ fits within a broader suite of VanEck thematic ETFs that collectively trace the infrastructure of modern economic life. SMH captures the semiconductor supply chain powering every digital device. ESPO covers competitive gaming and esports. DAPP provides exposure to digital asset companies. GENZ now adds the consumer layer, the people and platforms where all of that technology meets real economic behavior.
Together, they represent VanEck's conviction that the most durable investment themes are the ones tied to how people actually live, work, and spend not just how they did in the past.
GENZ | VanEck Digital Native Economy ETF
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IMPORTANT DISCLOSURES
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees.
The MarketVector Digital Native Economy Index (MVGENZTR) tracks the performance of US-listed companies that are shaping and driving the emerging next-generation economy.
The companies referenced herein are for illustrative purposes only and do not necessarily represent current or future Fund holdings. Fund holdings may vary. Visit vaneck.com/GENZ for a complete list of holdings.
An investment in the VanEck Digital Native Economy ETF (GENZ) may be subject to risks which include, among others, risks related to investing in the digital native economy, financial sector, communication services sector, consumer discretionary sector, industrials sector, and information technology sector, equity securities, depositary receipts, large-capitalization companies, cash transactions, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversified, and index-related concentration risks, all of which may adversely affect the Fund. Large-capitalization companies may be subject to elevated risks.
An investment in the VanEck Semiconductor ETF (SMH) may be subject to risks which include, among others, risks related to investing in the semiconductor industry, equity securities, information technology sector, foreign securities, emerging market issuers, foreign currency, depositary receipts, medium-capitalization companies, issuer-specific changes, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount, liquidity of fund shares, non-diversified, and index-related concentration risks, all of which may adversely affect the Fund. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. Medium-capitalization companies may be subject to elevated risks.
An investment in the VanEck Video Gaming and eSports ETF (ESPO) may be subject to risks which include, among others, risks related to investing in video gaming and eSports companies, software industry, internet software & services industry, semiconductor industry, equity securities, communication services sector, consumer discretionary sector, depositary receipts, small- and medium-capitalization companies, issuer-specific changes, special risk considerations of investing in Asian, Chinese and Japanese issuers, emerging markets issuers, foreign securities, foreign currency, market, operational, cash transactions, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount, liquidity of fund shares, non-diversified, and index-related concentration risks, all of which may adversely affect the Fund. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. Small- and medium-capitalization companies may be subject to elevated risks.
An investment in the VanEck Digital Transformation ETF (DAPP) may be subject to risks which include, among others, risks related to investing in digital transformation companies, equity securities, small- and medium-capitalization companies, information technology sector, financials sector, foreign securities, emerging market issuers, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount, liquidity of fund shares, non-diversified and index-related concentration risks, all of which may adversely affect the Fund. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. Small- and medium-capitalization companies may be subject to elevated risks.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
© Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation. 666 Third Avenue | New York, NY 10017
Related Funds
IMPORTANT DISCLOSURES
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees.
The MarketVector Digital Native Economy Index (MVGENZTR) tracks the performance of US-listed companies that are shaping and driving the emerging next-generation economy.
The companies referenced herein are for illustrative purposes only and do not necessarily represent current or future Fund holdings. Fund holdings may vary. Visit vaneck.com/GENZ for a complete list of holdings.
An investment in the VanEck Digital Native Economy ETF (GENZ) may be subject to risks which include, among others, risks related to investing in the digital native economy, financial sector, communication services sector, consumer discretionary sector, industrials sector, and information technology sector, equity securities, depositary receipts, large-capitalization companies, cash transactions, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversified, and index-related concentration risks, all of which may adversely affect the Fund. Large-capitalization companies may be subject to elevated risks.
An investment in the VanEck Semiconductor ETF (SMH) may be subject to risks which include, among others, risks related to investing in the semiconductor industry, equity securities, information technology sector, foreign securities, emerging market issuers, foreign currency, depositary receipts, medium-capitalization companies, issuer-specific changes, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount, liquidity of fund shares, non-diversified, and index-related concentration risks, all of which may adversely affect the Fund. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. Medium-capitalization companies may be subject to elevated risks.
An investment in the VanEck Video Gaming and eSports ETF (ESPO) may be subject to risks which include, among others, risks related to investing in video gaming and eSports companies, software industry, internet software & services industry, semiconductor industry, equity securities, communication services sector, consumer discretionary sector, depositary receipts, small- and medium-capitalization companies, issuer-specific changes, special risk considerations of investing in Asian, Chinese and Japanese issuers, emerging markets issuers, foreign securities, foreign currency, market, operational, cash transactions, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount, liquidity of fund shares, non-diversified, and index-related concentration risks, all of which may adversely affect the Fund. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. Small- and medium-capitalization companies may be subject to elevated risks.
An investment in the VanEck Digital Transformation ETF (DAPP) may be subject to risks which include, among others, risks related to investing in digital transformation companies, equity securities, small- and medium-capitalization companies, information technology sector, financials sector, foreign securities, emerging market issuers, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount, liquidity of fund shares, non-diversified and index-related concentration risks, all of which may adversely affect the Fund. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. Small- and medium-capitalization companies may be subject to elevated risks.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
© Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation. 666 Third Avenue | New York, NY 10017