Bux And BlackRock Launch Risk-Based ETF Savings Plans

(CTN News) – There is a new risk-adjusted ETF savings plan that BlackRock and digital wealth manager Bux will launch later this year, ETF Stream can reveal.

There will be a number of savings plans available on the Bux platform later this year that will allow retail investors to invest directly in BlackRock ETFs grouped across the risk spectrum – from defensive to growth – in “off-the-shelf” portfolios.

Neither BlackRock nor its representatives would comment on the matter.

The new offering is the result of a partnership between Bux and BlackRock that has been ongoing for some time. There are eight European countries where the pair launched ETF savings plans that are based on thematic themes in January this year.

As an investor, you can purchase the plans for €10 per month with a commission fee of €1 per trade and a minimum investment of €10 per month.

The CEO of the company, Yorick Naeff, told ETF Stream that the launch is aimed at helping retail investors grow their savings in a more “orderly manner” as the group looks to take advantage of the boom in retail investments across Europe, with the launch taking place in July.

There is still a very limited retail investment space in Europe but we believe that this is going to change in the near future,” Naeff explained.

We are currently experiencing a change in pension systems, a spike in house prices, and higher inflation rates and interest rates than we have seen in decades.

“We believe that there is an intrinsic need for people to start investing and diversifying their own money, so we want to be the platform that people can turn to to begin that journey of investing and diversification.”.

During the next 12 months, BlackRock estimates that the number of ETF investors in Europe is likely to grow by 32% – or 6.6 million – as investors realize the cost-effective benefits of investing through ETFs.

According to BlackRock, by 2026, the number of investors contributing to ETF savings plans in Germany alone will total 20 million, up from 10 million in April last year.

According to Naeff, the level of investing knowledge among retail investors is also increasing, which is why he believes an execution-only platform at a lower price point would be ideal.

This upcoming product is designed to compete with Nutmeg, Moneyfarm, and Scalable Capital in terms of passive model portfolio services which offer passive portfolios based on ETFs.

According to Scalable Capital, which is based in Munich, the company reached a million users in Europe with its ETFs and stocks and managed savings plans earlier this year.

According to Naeff, as investing becomes more prevalent and more sophisticated, the level of sophistication is increasing.

We can gain market share from mutual funds and robo-advisor firms by offering this service at a significantly lower price point in an execution only application.

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