UK digital wealth manager Nutmeg has launched three ETF portfolios targeting future-focused megatrends.
The three portfolios, which carry a management fee of 0.75% on the first £100,000 invested and 0.35% thereafter, will focus on ‘technological innovation’, ‘resource transformation’ and ‘evolving customer’.
Nutmeg define the three themes as:
Technological innovation: Investing in technological advances and innovation driving the modern world, with exposure to the adoption of robotics and automation, demand for cloud computing and cyber security, and the growing use of semiconductors and artificial intelligence (AI)
Resource transformation: Investing in the ways we utilise energy and resources to meet our future needs, with exposure to the evolving mix of energy sources powering our future, materials required to drive electrification and the growing global demand for clean water
Evolving consumer: Investing in the evolving demand and needs of our global population, with exposure to the rising importance of digital products and services, ageing populations and evolving healthcare sectors and growing wealth of emerging market consumers
The portfolios will invest in thematic ETFs that focus on the respective three themes as well as a globally diversified range of ETFs that are not specific to the megatrends.
Exposure to themes will be determined by investors’ risk tolerance. A customer selecting risk ‘level 5’ will see 10% of their portfolios invested in thematic ETFs while risk ‘level 10’ investors’ exposure to thematic ETFs will be capped at 20%.
James McManus, CIO at Nutmeg, said: “Our thematic investment portfolios have been designed to provide customers with an opportunity to invest in those long-term trends that are shaping society and the economy while also benefitting from a globally diversified approach.
“As thematic investing becomes increasingly popular among investors, our aim is to offer customers a new way of investing with Nutmeg that helps get them closer to achieving their financial goals.”