Scalable Capital hits 1 million ETF and stock savings plans

The digital wealth manager is seeing “record demand” from investors for its ETF and stock savings plans.

Scalable Capital now reached one million monthly ETF and stock savings plans, according to an update from the company.

Founded in 2014, Scalable is active in Germany, Austria, France, Italy, the Netherlands, Spain, and the UK and has €10bn on its platform. 

Investors tend to be most numerous in the 26-35 years old category, accounting for 43 per cent of plans followed by the 36 to 45 age range. 

More than 90 per cent is invested in ETFs and just under 10 per cent in individual stocks, with the most popular investments among clients being ETFs tracking a broader index, such as the MSCI World. 

Scalable offers access to 2,400 ETFs from more than 30 available issuers in total and about 7,500 global stocks.

"Against the backdrop of rising inflation and the widening pension gap, easy and affordable investment offerings like those from Scalable Capital are essential for retail clients," said Erik Podzuweit, founder and co-CEO of Scalable Capital: 

The digital wealth manager says plans are commission-free with plans available from €1 per month although its average customer puts in c. €470 per month. 

The company which launched originally as a pure ‘robo advisor’ is split between a brokerage, white label and wealth division It ‘wealth service is available in Germany and Austria only at present, and also offers customers an ETF portfolio automatically managed from €20 euro a month and no initial minimum investment.

One in two of its brokerage customers also invests regularly via a savings plan, the company says.

"Particularly with regard to retirement planning and the often long time horizons associated with it, it makes sense to invest part of one's wealth in ETFs and stocks. This has evidently become more and more clear to decision-makers in politics, as they aim to incentivise investing. However, private pension provision and investing will continue to be essential to close the pension gap.” Podzuweit, added.