Raisin launches cut-rate ETF portfolios on German platform

By Roger Baird on Friday 17 May 2019

Savings and Investment

The German savings marketplace said investors can buy into these portfolios from €500.

Raisin launches cut-rate ETF portfolios on German platform
Image source: Provided by Raisin

German savings marketplace Raisin and US investments giant Vanguard will sell exchange traded funds (ETFs) to investors from €50 a month.

The Berlin-based fintech, which operates across Europe, said it will initially only offer its ETF portfolios on its German platform, WeltSparen.

Raisin added it will allow backers on its home site to invest just €500 in these products, compared to the average minimum of around €9,500 offered to German investors, according to its own research.     

The marketplace adds it charges total fees of 0.49 per cent on its ETFs, compared to an average of 1.3 per cent levied by German robo advisors.

The global ETF market - related groups of traded equities, bonds or commodities - has grown to more than $5trn over the last decade. Raisin said its German platform holds €100m of these funds under management, backed by 5,000 customers.  

EFTs have grown in popularity with investors since the financial crisis, allowing them convenient ways to buy into diverse markets such as gold, emerging economies and energy companies. These funds are marked by low entry and service fees, with their tradeable status allowing investors to easily switch markets.

Raisin head of investment products Dr Til Rochow (pictured) said: “With this new savings plan and the lowered minimum investment, we are able to give even more investors a simple way to access a professional portfolio. We want to offer our customers the perfect solution to build their wealth and prepare for retirement.”

Vanguard head of Germany and Austria Sebastian Külps added: “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."

Raisin has brokered €13bn for more than 175,000 customers in 31 European countries and has signed deals with 75 partner banks since it was founded in 2012.

Pennsylvania-based Vanguard, founded in 1975, manages $5.4trn on behalf of more than 20 million investors worldwide.

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