Industry Updates

German retail platform partners with Whitebox for ETF savings plans

Investors will be offered tailormade ETF savings portfolios

Theo Andrew

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German online retail broker flatexDEGIRO has partnered with digital wealth manager Whitebox to offer investors tailormade ETF saving plan portfolios.

The pair will offer a fully digitised investment solution for retail investors which aims to go live in the summer.

The announcement was made after a Memorandum of Understanding was signed between flatexDEGRIO and Whitebox, building on a seven-year-long partnership.

Muhamad Chahruh, CFO of flatexDEGIRO, said while the ETF savings plans are a great initiative, investors need more guidance when it comes to selecting the right portfolio.

“Be it due to indecision, lack of ideas or the desire for a simple, tailor-made product. ETF savings plans are an important step in the right direction, but clients still have to search for, analyse and select the right ETF themselves,” he said.

“Many customers have asked us for a simple solution – we now deliver this in partnership with Whitebox. In a few clicks, everyone can create their own portfolio – and benefit sustainably from Europe's easiest access to capital markets.”

ETF savings plans, which allow investors to establish a flexible and customisable investment strategy, have fuelled a retail investment boom in Germany with the number of self-directed clients more than doubling to more than three million in two years by the end of 2021.

Furthermore, the amount being invested has rocketed a staggering 254%, up from €166m a month in 2019 to €589m a month in 2021.

Salome Preiswerk, founder and managing director of Whitebox, added: “Our aim is to offer investments that are tailored to individual needs, simple, transparent, cost-effective - and of high quality. Expanding our reach with a trusted partner such as flatexDEGIRO to potentially several million retail investors across Europe means a big step forward for us.”

The move comes after indexing giant Vanguard announced the launch of an index fund-based digital investment service for retail investors in Germany.

The platform, named Vanguard Invest Anlageservice, will be run by a team of client relations associates to provide investors with bespoke portfolios for long-term investment.

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