Alternative Investments: BlackRock In Move To Attract Younger Savers To Its ETFs

https://dailyalts.com/wp-content/uploads/2023/02/piggy-bank-gc57199416_640.jpg

BlackRock is offering low-cost savings plans that use exchange traded funds.

BlackRock is teaming up with neobroker Bux to offer low-cost ETF savings plans in Europe. The savings plan, which will cost just €1 per month on the Bux platform, will allow investors to build portfolios of up to 10 BlackRock iShares ETFs, with a €1 commission fee for portfolio trades. (FT)

The minimum investment is set at €10 per month, aimed at appealing to younger savers. The Bux ETF savings plan will be launched in eight countries on January 31st. The move reflects the growing price war in ETF fees and shows how it’s spreading into savings plans and fund trading costs.

The plan is expected to attract 10 million new ETF investors in Europe over the next five years, creating a potential pool of assets worth €500 billion by 2026. The plan is aimed at younger or less confident investors who feel overwhelmed by the financial market.

BlackRock – Bux

BlackRock’s partnership with Bux will create an efficient way for investors to invest in global markets in a simple and cost-effective manner. The use of ETF investment plans is rapidly spreading across Europe, driven by large institutional players.

However, regulators believe that encouraging retail investors to use ETFs instead of active mutual funds could lead to better returns for consumers.

The absence of incentives for advisers to recommend ETFs is seen as one of the reasons for slow adoption among European retail investors.

Related Story:  BlackRock Launches Metaverse ETF

Image by luxstorm from Pixabay

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2023/03/Buy-1.jpg
Digital Assets: Ledger, Maker Of Crypto Security Hardware, Raises Nearly All Of $100M Series C Round
March 31, 2023     Digital Assets, News, Venture Capital

Paris-based startup Ledger, which makes hardware wallets for cryptocurrency investors, has raised €100m ($109m) in funding, valuing the company at €1.3bn. The round was led by investors including Digital Finance…

https://dailyalts.com/wp-content/uploads/2023/03/Three-phones-dropping-v3-2021-prosumer.jpg
FinTech: Cogo And Eliq Partner To Help Banking Customers Enhance The Energy Efficiency Of Their Homes
March 31, 2023     ESG and Sustainability, FinTech, News

Cogo, a fintech which collaborates with banks to assist customers in decreasing their carbon footprint as a carbon footprint management firm, is partnering with Eliq, a company that specializes in…

https://dailyalts.com/wp-content/uploads/2023/03/steven-hwg-zBsdRTHIIm4-unsplash.jpg
Venture Capital: The LSP Dementia Fund Closes €260M (US$283M) To Address Dementia, One Of The Most Significant Health Crises Of Our Era
March 31, 2023     Latest News, News, Venture Capital

The LSP Dementia Fund has reached a final close at €260 million (US$ 283 million), surpassing its initial target of €100 million. The fund, which is managed by EQT Life…

https://dailyalts.com/wp-content/uploads/2023/03/faq26.jpg
Artificial Intelligence: The DAGGER AI Model Gives Advance Warning Of Dangerous Solar Storms
March 31, 2023     Artificial Intelligence, News

Researchers have developed an AI-based model that combines satellite data and machine learning to predict where an impending solar storm will strike on Earth, offering 30 minutes of advance warning….