Allfunds to offer ETFs on funds platform

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Allfunds is to launch a new ETF service on its platform

The products from Lyxor, iShares, Source and Deutsche Xtrackers will be available from 1 June.

Allfunds says the providers have welcomed the move for its potential to spur greater uptake of ETFs by retail investors.

Chief executive Juan Alcaraz says: “Buying an ETF in the stock market is one thing, incorporating ETFs in the wealth management industry’s current distribution framework is a completely different matter.

“We therefore believe that our ETF service position is unique and brings a new dimension to ETF distribution both for wealth managers and their retail investors”.

Platforum senior analyst Rodolfo Crespo says the offer of fractional trading of ETFs is the bigger news for Allfunds.

He says: “Allfunds becomes the first platform to support fractional trading of ETFs on a cross-border basis, which is essential for an efficient provision of regular investing solutions and model portfolio rebalancing.

“This certainly can be a competitive advantage for Allfunds over its institutional platform competitors now that banks and wealth managers across Europe are considering digital propositions to cater for customers whose portfolios are not large enough to be provided with a personalised face-to-face service”