Robo-adviser ETFmatic offers investors fee lowering incentives

By Daniel Lanyon on 28th February 2018


The platform has unveiled a series of measures that can reduce portfolio costs to zero.

Robo-adviser ETFmatic offers investors fee lowering incentives

Lower fees are the original argument for disruption to ‘traditional’ wealth management and the rise of the so-called robo advisers.

Digital portfolios existing on smartphones only clearly have the opportunity to beat competitors with fancy offices, brass plaques outside the door and substantial headcounts of staff.

To be fair nearly all robo-advisers (digital wealth managers) have total fees significantly less than the average wealth manager or adviser but some have prioritised lower fees more than others.

ETFmatic is one such example having consistently lowered fees in the past year as well as made accounts in the names of children free from fees and launching rewards for goal setting.

The firm has now unveiled a raft of ways investors can further reduce fees, in some cases to zero.

Each month it’s running a campaign allowing investors to earn free investment management fees. For example, in December if you created a new portfolio and funded it you received one month of free fees. In January if you doubled your assets they gave away another month fee-free.

In February, providing a case study meant you received yet another month of free fees. In March, the firm is giving away a free month if you become a beta user and experience its latest feature releases.

The really clever tactic comes straight out of the Uber playbook. If you invite 3 friends and they fund their portfolios you get 3 more months taken off fees.  ETFmatic says it has more campaigns coming throughout the year.

Last year ETFmatic said its annual management fee would reduce from 0.5 per cent to 0.48 per cent for portfolios £25,000. For portfolios above £25,000 they are reducing fees from 0.30 per cent to 0.29 per cent.  Given a 12 basis points average Total Expense Ratio across portfolios, this adds up to a total cost of less than 0.60/0.45 per cent.


Insurance AI & Analytics USA

Insurance AI & Analytics USA (June 27-28, Chicago) is the only forum bridging the gap between the analytical and data minds and the business transformation leaders. As carriers rush to meet customer demands and deliver continuous business growth without dramatically increasing costs, deploying innovative technologies such as AI, machine learning and advanced analytics can be the only way to remain competitive. But in order to deliver real value to the organization, these innovations must have a real application in the core business areas and directly improve operational efficiency and deliver a seamless customer experience

26th June 2018

Companies in this Article:


More like this:

Robo-advice News Wrap – Monday 12 June

12th June 2017
David Tuckwell

IG Group expands its cryptocurrency trading

21st August 2017
Moriah Costa

eToro plans free share trading

20th March 2019
Daniel Lanyon

FCA highlights robo-advisors’ flaws

22nd May 2018
Daniel Lanyon

Digital wealth manager targets £7m fundraise

17th December 2018
Daniel Lanyon