Firms Respond to Growing Demand for ETFs in Europe

Customers always want options. From an investment standpoint, as they become more aware of the risks involved with investing, many are looking to diversify their portfolios. Looking to add more options for consumers, smart money app, Plum and Spectrum Markets (Spectrum), the pan-European trading venue for financial instruments, have announced new exchange-traded fund (ETF) offerings on their respective platforms.

ETFs have gained investor interest due to their diversification, liquidity and competitive fees. As such Spectrum has announced that 1,757 Exchange Traded Funds (ETFs) are now available for trading. Similarly, Plum has expanded its investment offering to include ETFs across its EU markets.

Plum customers can now invest in diversified funds by geographical region, sector and asset class. This is in addition to tracking multiple stock market indices from around the world.

Expanding on its US stocks offerings

In partnership with Berlin-based fintech Upvest, Plum now offers its customers investments in EUR-denominated ETFs, including fractional shares. As a result, Plum is able to offer its customers a broader, enhanced investment experience. This is in addition to the 3,000 US stocks it already offers.

The Easy ETF range, accessible without a paid subscription, consists of three globally diversified ETFs tailored to different risk levels to help customers start their investment journey. The rest of the ETFs are available with pro and premium subscriptions, with more than 40 carefully selected funds on offer in total, such as CAC 40, S&P 500 US and the Artificial Intelligence ETF .

Victor Trokoudes, CEO and founder of Plum explains: “At Plum, we enable people to build wealth automatically over the long term, and offering ETF investing is a natural step in that direction for our EU customers. ETFs allow investment in multiple assets at once, reducing costs and creating a more diversified portfolio.

“That is why we have carefully selected our range of ETFs to provide customers with a concise but high-quality offering that meets their needs without overwhelming them.

“By offering diversified, expertly created ETFs, we’re making it easier for people to invest in the sectors and regions that matter to them. When combined with the ability to choose an ETF tailored to your risk level, the offering simplifies our customers’ ability to build their wealth over the long-term with less effort.”

ETFs are available to Plum customers in France, Ireland, the Netherlands, Italy, Spain, Portugal, Cyprus and Greece.

Capitalising on Spectrum’s trading hours

The firm’s extended trading hours enable brokers to facilitate intraday trading for their retail investors, within a regulated trading environment. Through its advanced infrastructure and technology, Spectrum was able to innovate to cater to the growing demand in this product class. Additionally, it was able to expand its portfolio of available products.

“ETFs are one of the most exciting product classes right now, and so Spectrum is pleased we were able to instantly respond to meet this demand. This marks a significant milestone for brokers and retail investors throughout Europe, as they can now access a diverse range of ETFs from some of the most recognised providers through Spectrum,” said Nicky Maan, CEO of Spectrum Markets.

“We remain committed to listening to our clients’ needs. We want to ensure they are receiving that in the most secure and transparent way available, as we continue to expand our product set on the venue.”

ETFs from more than 30 leading global fund providers will be made available for trading on Spectrum during extended trading hours, including:

• BNP Paribas
• Goldman Sachs
• Fidelity
• Franklin Templeton
• HSBC
• iShares
• JP Morgan
• Legal & General
• Pimco
• State Street
• UBS
• Vanguard
• WisdomTree

Providing liquidity 

Major market-maker in Germany, ICF BANK AG, the German securities trading bank, will provide liquidity for ETFs on Spectrum. ICF BANK AG was chosen for its quality of execution, uptime presence in the order book, and pricing quality.

“ICF’s substantial growth in recent years underscores our commitment to innovation and looking at partners that can offer us this. As a result, we believe that collaborating with Spectrum aligns seamlessly with our international growth strategy. We look forward to expanding our business beyond Germany and entering into the wider European markets in the near future,” added Lars Lautenschläger, managing director at ICF BANK AG.