Lloyds Bank has partnered with BlackRock to launch an ‘ETF Quicklist’ service for UK retail investors.
Updated quarterly, the ETF Quicklist will provide retail investors with a shortlist of BlackRock ETFs across a variety of asset classes.
The 16 UK-listed ETFs span regional equity exposures – global, US, emerging markets, UK, China, Japan – fixed income – core corporate and UK gilts – and sector and themes – commodities, clean energy, UK property, healthcare innovation, AI and automation, tech, financials and UK dividends.
The Quicklist is designed to offer a handful of the ETFs on the Lloyds execution-only platform as potential building blocks for an investment portfolio.
“With over 600 ETFs to choose from, we know finding the right investment can be daunting,” Lloyds said.
Investors can access the ETFs commission-free via a regular investment plan starting from £20 per month through either a share dealing account or ISA on the Lloyds app or online.
Investing in ETFs through Lloyds without a regular investment plan carries a £20 semi-annual admin fee and an £11 dealing fee.
The move follows a Lloyds Bank survey which found half of Brits are too intimidated to invest while 28% said affordable options would allay some of their concerns.
A recent BlackRock survey in partnership with YouGov found the UK is set to be Europe’s third-largest ETF growth market over the next 12 months, with the number of new retail investors using ETFs forecasted to increase by 56%.
Manuel Pardavila-Gonzalez, managing director of Lloyds Bank Investments, said: “Investing should be hassle-free, affordable and accessible to all customers and our new ETF Quicklist will provide an easy way to get started on their investment journey.
“ETFs are a great option for people who want to build and manage their own portfolio. They are simple to understand and offer investors a low-cost, diversified set of holdings.
“Those who are completely new to investing or less confident selecting their investments could benefit from taking their first step using our new ready-made investments service.”
Jane Sloan, EMEA head of iShares and index investing at BlackRock, added: “We are delighted to work with Lloyds Bank to help make investing in ETFs even more accessible to a broader range of investors and easier to understand.
“Delivering investments online and through mobile banking, brings the simplicity and affordability of ETFs to more people.”
The launch of the ETF Quicklist follows the arrival of Lloyds Bank’s read-made investments service, allowing customers to invest in funds-of-funds through the bank’s app starting at £50 a month, with a £3 monthly account fee and annual fund charges between 0.21% and 0.23%.
Such moves coincide with challenger fintech banks stepping in to provide investment offerings through their banking apps.
Last month, Monzo partnered with BlackRock to offer its first direct-to-consumer investment service based on BlackRock’s MyMap fund range. Following the launch, more than 200,000 Monzo customers were on the waiting list to access the service.
In May, Revolut partnered with Berlin-based fintech Upvest to launch an investing platform on its app providing European clients access to 158 ETFs, with fractional trades starting from just €1.
In February, Chase UK incorporated Nutmeg – the ETF-based robo-adviser it acquired in 2021 – into its retail banking app under the ‘save and invest’ page.