Industry Updates

Raisin reduces barriers for German ETF investment platform

George Geddes

a man in a suit smiling

German-based fintech company Raisin is implementing a savings plan for its line of ETF portfolios it offers, starting with its German-based platform WeltSparen. The investment plan enables German investors to start saving and investing from €50 a month.

Raisin offers portfolios named WeltInvest, a result of partnerships with Vanguard and DAB BNP Paribas. In addition to reducing its minimum monthly saving amount, the company is lowering its one-time minimum required investment for its WeltInvest portfolios to €500.

The reduction of capital requirement is Raisin’s bid to enable retail users to start saving and investing with transparent and cost-efficient products. Vanguard was among the several asset managers fighting in the war on fees, as the company slashed its prices on 10 ETFs back in February.

With the German robo-adviser market average for fees being 1.3% and average minimum investment of €9,500, Raisin’s 0.49% all-in fees and €500 minimum first investment are significantly lower.

Launching 12 months ago, WeltInvest has attracted 5,000 users which have invested in excess of €100m.

Sebastian Külps (pictured), Vanguard’s head of Germany and Austria, commented: “Through our partners at Raisin, investors are empowered to start growing their wealth even by putting very small amounts into a globally diversified portfolio consisting of Vanguard ETFs and index funds.

“We are thus joining forces with Raisin to pursue the vision of Vanguard founder (and the inventor of index funds) John Bogle, to democratize investing for everyone: 'when there are multiple solutions to a problem, choose the simplest one and keep cost in mind'.”

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