Vanguard has launched an index fund-based digital investment service for retail investors in Germany.
The platform, named Vanguard Invest Anlageservice, will be run by a team of client relations associates to provide investors with bespoke portfolios for long-term investment.
Anlageservice asks clients to fill out risk appetite questionnaires and based on the responses provided, Vanguard then provides an investor with a diversified portfolio based on appropriate bond and equity index funds from its own range. The products included in the new platform are:
Fixed income funds
Vanguard U.S. 500 Stock Index Fund EUR
US Government Bond Index Fund EUR Hedged
Vanguard European Stock Index Fund EUR
Global Corporate Bond Index Fund EUR Hedged
Vanguard Emerging Markets Stock Index Fund EUR
Euro Government Bond Index Fund EUR
Vanguard Global Small-Cap Index Fund EUR
Japan Government Bond Index Fund EUR Hedged
Vanguard Japan Stock Index Fund EUR
UK Government Bond Index Fund EUR Hedged
Vanguard Pacific ex-Japan Stock Index Fund EUR
Global Short-Term Corporate Bond Index Fund EUR Hedged
Global Short-Term Bond Index Fund EUR Hedged
Over time, Vanguard will perform continuous and automated monitoring and rebalancing of portfolios to maintain an investor’s desired risk profile.
Individuals can also define their investment objective and success forecast as well as being able to perform gradual risk reduction when approaching their specified investment horizon, if desired.
Anlageservice advertises a “fair and transparent fee structure”, charging a 0.65% all-in service fee and average 0.15% fund fees, with “no hidden costs or commissions paid to bank advisors or intermediaries”.
Individuals can perform free deposits and withdrawals, with a minimum investment amount of €5,000 and a monthly savings plan function from €25 per month.
Anlageservice can be accessed by German private investors as an app on the Android and iOS systems.
Commenting on the launch, Jesper Wahrendorf, head of Vanguard Invest, said: “Since entering the German market at the end of 2017, Vanguard has led the way in giving investors a fair deal through access to good-value, straight-forward, and high-quality investments.
“Vanguard’s new service will help investors navigate Germany’s complex investment landscape.”
Sean Hagerty, head of Vanguard in Europe, added: “For too long, investors have been poorly served with high-cost, complex investments. We firmly believe that our cost-effective and broadly diversified investment approach will appeal to German investors.
“Going forward, we will also broaden our offer to serve investors that wish to build their own portfolios.”
Anglaeservice arrives during a period of rapid development for German retail investment offerings. In January, WisdomTree partnered with ING Germany to offer its products on ING’s online platform, while ETC Group and Comdirect partnered to offer crypto savings plans to German retail investors.
In December last year, Scalabale Capital joined forces with CoinShares to offer its retail clients in Germany access to crypto exchange-traded products (ETPs).