Industry Updates

Neon offers zero-fee trading on two Invesco ETFs

Neon launched its investment service featuring 65 ETFs in July

Jamie Gordon

Online robo trading app

Swiss challenger bank Neon and Invesco have partnered to offer free trading on two global equity ETFs. 

Until 31 December, investors can access the Invesco All-World UCITS ETF (FWRA) and Invesco MSCI World ESG Climate Paris Aligned UCITS ETF (PAWD) with no charges for custody, currency or trading. 

While investors will initially be charged trading fees, these will be refunded to the user’s Neon account on the next business day.

FWRA and PAWD will be issued in Swiss francs with total expense ratios (TERs) or 0.15% and 0.20%, respectively.

Invesco said the move makes it the first issuer to offer free ETF trading in Switzerland.

Julius Kirscheneder, co-founder of Neon, commented: “The cost structure of banking services and investment products in Switzerland is still too high compared to other countries.

“With this cooperation, Invesco and Neon are jointly spearheading investment savings for the Swiss and their basic provision with ETFs.”

Nima Pouyan, head of institutional business and ETF distribution for Switzerland and Liechtenstein at Invesco, added: “As an international asset manager, innovation and technology are integral parts of our DNA. At the same time, we are strongly anchored in Switzerland and with this cooperation, we promote the transfer of knowledge between established companies and challengers.  

“In this way, Invesco is also strengthening the digital investment options for Swiss people.” 

Prior to the news, Neon already enabled users to invest in the Invesco EQQQ Nasdaq 100 UCITS ETF (EQQQ) and broad market, sector, thematic and commodity ETFs from BlackRock, DWS, Amundi, Vanguard and VanEck.

Around 25,000 of the 180,000 Neon customers have used the Neon invest service since it launched in July this year, with the 65 ETFs on offer comprising 38% of total traded volume by 19 October. 

Neon said it plans to launch more ETFs and sustainability ratings in due course.

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