ETFs are listed on the main stock exchanges in the same way as some of the most successful companies and Government issued bonds. Last year they traded at almost $3 trillion.
ETF assets are expected to continue growing rapidly in the future with predicted annual growth rates of 15-30% around the globe. More significantly, they provide broader diversification and higher liquidity to institutional and retail investors every day.
Research shows that ETFs have been outperforming mutual funds by offering better diversification at a fraction of the cost. ETFDB has published an article aptly titled "Why ETFs are better than Mutual Funds in Two Charts". The article presented simple graphical evidence of why ETFs are cheaper and deliver better returns.
If we study the long term returns of the S&P 500 versus mutual funds, mutual funds tend to underperform. Investors in mutual funds also only get about ⅓ of the profits as most of the money made goes towards management fees and other financial services, whereas with ETFs most of the profit goes right into your pocket.
Moreover, an ETF portfolio can be adapted to fit your changing needs and goals because there are almost 5,000 high-quality, low-cost building blocks that can be combined in almost infinite ways to suit your needs. This includes the option to reduce the volatility of your portfolio as you approach your target date (gliding) and different divestment options that will help pay for your goal (eg monthly installments).
At ETFmatic we constantly review the performance of ETFs available in Europe to choose the best building blocks in terms of efficiency and liquidity amongst other factors. We then combine them in unique Portfolios based on the needs of each of our Customers. We help schedule regular contributions through direct debits and simple app notifications and we rebalance your portfolio when the market moves up or down to help adjust your risk exposure.
Because the Portfolio of every ETFmatic is unique, it can be managed taking into account tax consequences. We are not tax advisors, but thanks to our approach you won't need to pay additional quarterly taxes to keep your Portfolio balanced.
In the U.K. we already offer ISA Accounts that enable us to trade more often without additional tax burden for our customers, and we plan to launch SIPP and equivalent options across different European countries soon.
Because we manage for you a Portfolio based on ETFs from issuers such as Vanguard, State Street and Blackrock, you obtain more transparency than other options can guarantee.
Our customers ETFs are held by Saxo Bank and covered by European protection schemes with the standard conditions.
Our Portfolios currently include ETFs from
Despite the interests of a significant part of the Financial Services Industry, you can now buy ETFs in most banks and online brokers. But beware the small print, many platforms charge endless fees, add trading spreads or dump you into a cookie cuter portfolio. Why pay trading fees for multiple ETFs every time you contribute funds when you can benefit from ETFmatic's all-inclusive pricing?
Our Investment Terms are simple to read and less than 20 pages long. We hate small print and surprise fees, that's why we charge customers a small monthly fee proportional to the value of their ETFs (1/12th of 0.5%, 0.0417%).
Our founders have been applying these strategies to their personal portfolios, but it is a lot of work calculating and entering the right orders every month… and paying the huge fees online brokers and traditional banks charge. Why should investing in an ETF based Portfolio managed towards your needs be complicated?
At ETFmatic we make it as automatic as you want. The benefit of our cruise control is that we can tailor the risk and therefore market return of combinations of ETFs to the time horizon of your goals. You can read more about our approach here.