Industry Updates

InvestEngine launches ETF savings plans in the UK

DIY investment platform looking to emulate ETF savings plans success in Europe

Theo Andrew

a stack of coins

ETF investment platform InvestEngine is launching an ETF savings plan allowing its UK customers to make regular investments from as little as £10 a week.

The savings plans, which have proved hugely popular in Germany and across Europe, will offer investors access to its 550 commission-free ETFs which they will be able to select and manage themselves.

Investors will see their chosen amount invested automatically on a weekly, fortnightly or monthly basis into their chosen strategy.

The group said it hopes to open the door to new and less experienced investors, with less than 30% of UK adults feeling like investing is “not for people like them”, according to a survey by Opinium.

It comes as ETF savings plans have exploded in popularity across Europe, with the number of people investing in a plan expected to hit 20 million by 2026, according to Blackrock, with the overall volume invested in ETFs by retail investors globally expected to hit €350bn by the same year.

InvestEngine’s platform will also use fractional trading, another technology enabling retail entry in ETFs, allowing investors to purchase any fraction of an ETF – from as little as £1 – rather than an entire unit.

Andrey Dobrynin, co-founder and managing director at InvestEngine, said: “ETF savings plans have grown significantly in popularity around the world as a simple, low-risk way for people to invest little and often, and grow their wealth.

“While we have seen our financial lives transformed by tech innovations in recent years, the way we invest has not always kept pace, and is restricting people’s ability to put their money to work for the future.

“With the launch of our savings plans, we are utilising the latest innovations in automation and investing, building on the success seen in countries like Germany and helping make the UK the investing capital of Europe.”

In a bid to capture the growth, ETF issuers have been rushing to partner with online investment platforms.

Last month, ETF Stream revealed BlackRock was extending its partnership with digital wealth manager Bux to launch risk-based ETF savings plans available on the Bux platform.

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