ETF Securities Launches Portfolio Simulator Amid Retail Push

March 10, 2014

ETF Securities UK is continuing to make exchange traded products more accessible to the retail market by launching a portfolio simulator enabling retail investors to practise building their own ETP portfolios.

The ETP Portfolio Builder will allow investors to familiarise themselves with ETPs is powered by Just ETF and offers access to a broad range of investment strategies.

It enables investors to structure a hypothetical portfolio and visualise how their ETP assets would have performed on a historical basis.

Features of the Portfolio Builder include a choice of four currencies - EUR, USD, GBP and CHF; a choice of asset class, including equities, commodities, currencies and precious metals; a choice of 87 benchmarks including the FTSE 100 and S&P 500; and the ability to set the time horizon from one to five years in the portfolios.

Frank Spiteri, head of retail distribution strategy at ETF Securities, said in a statement: “We have been focusing on educating retail investors on the importance of asset allocation and how ETPs can be used as building blocks to achieve their allocation. This simulator further strengthens our commitment to making ETP investing more accessible to the retail market.

“The tool not only helps users understand the benefits and risks of investing through ETPs but encourages them to include asset classes such as commodities as part of a diversified portfolio. Gold represented 8 percent of the retail turnover in ETPs in the UK last year and this trend may continue as investors become increasingly aware that accessing commodities such as gold via ETPs is as easy as trading shares, without having to take physical delivery of the metal,” Spiteri said.

According to a note from ETF Securities:  “Retail investor appetite for these products [ETPs] has increased significantly in recent years and in 2013, retail investors and their advisers accounted for close to 12 percent of ETP turnover in the UK.”

Most recently ETF Securities were reported to be part of early talks over coming together as a group to boost the fledgling retail ETP market.  The ETP providers in the joint venture are: Vanguard, iShares, SPDR ETFs, Source, UBS, HSBC, Lyxor, ETF Securities and db X-trackers, according to a source.

The UK’s ETP market was given a boost at the start of last year when the Retail Distribution Review (RDR) came into force, but the anticipated uptake of ETPs from retail investors has not materialised as hoped and several challenges remain.


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