Beginning today, BUX clients will be the first in Europe to be able to invest in fractional European ETFs outside of an investment plan. In partnership with ABN AMRO Clearing Bank, BUX has built the technology that makes it possible to offer fractional investing in European ETFs. This new feature follows shortly after BUX introduced fractional investing to its clients in January 2022.
Fractional European ETF investing lowers threshold for monthly investing
With the introduction of fractional European ETFs, clients are now able to invest with an amount as little as €10. European ETFs with a higher price tag, such as the S&P 500 Index which typically costs €80, thus become more accessible to investors with a smaller budget. This allows all investors, regardless of budget, to invest in different ETFs monthly and minimises the investment risk by offering room to diversify portfolios further.
BUX introduces a total of 20 fractional European ETFs
In addition to the fractional European ETFs, BUX has also added an additional 95 new fractional U.S. stocks to its already existing offering. Well-known names among the U.S. stocks that are now also available to invest in fractionally include Mastercard, PepsiCo and IBM. In the future, fractional investing in European stocks will also become available.
“With the introduction of fractional European ETFs, we can offer more ways for our clients to build a portfolio that fits their needs and goals. Since introducing fractional investing to our clients at the beginning of the year, we have seen a great deal of interest and this demonstrates that the modern investor is embracing diverse investment options. As the economic climate continues to swing in uncertain directions, we want to offer Europeans a solution that allows them to put their money to work in an accessible way,” said Yorick Naeff, CEO of BUX.
“Fractional trading is trading made accessible for everyone. With our unique fractional trading service we are supporting our clients to offer embedded investment solutions in capital markets, so all their clients can profit. Expanding this fractional trading service offering with European products will open up the EU capital markets for our clients and their investors to create embedded and efficient investment solutions as well,” said Jan Bart de Boer, CCO of ABN AMRO Clearing.
The modern investor at BUX opts for fractional investing
Fractional investing is quickly gaining popularity among clients at BUX. Internal research has shown that since the launch of fractional investing in January 2022, nearly 1 in 7 orders has been a purchase of a fractional share. The undisputed favorite among fractional U.S. stocks is Tesla. Among all age groups, the electric carmaker is the most purchased fractional stock since the beginning of the year. One notable difference is that among female investors, Beyond Meat (9) and Walt Disney (10) have a spot in the top 10 most purchased fractional stocks, while NVIDIA (9) and Shopify (10) made the top 10 of the most purchased shares by males.