Vanguard, the Malvern, Pennsylvania-based exchange-traded funds giant, has joined forces with Berlin-based fintech firm Raisin, as it looks to boost its ETF sales among German retail investors.
Raisin, which currently has about 100,000 customers and manages €5bn in assets, has until now focussed on providing savings product offerings.
It has now added ETF portfolios to its product range, which come with a minimum investment of €2,000 and average annual costs below 0.5%, the company says.
Investors will be able to choose between four portfolios of DAB, BNP Paribas or Vanguard funds with an equity share of 30%, 50%, 70% and 100%, respectively, and be able to invest globally, diversified in up to 16,000 individual securities.
Besides Germany, Raisin also has localised platforms for France, Spain, and Austria, and aims to expand its ETF offering across these countries.
Raisin has been described as one of the largest of a crop of emerging German fintech start-ups to have attracted investor interest, and cash, over the last couple of years. Among its specialties is helping its clients to take advantage of the best interest rates on offer by enabling them to easily move their money between bank accounts.
For its part, Vanguard has been expanding into Europe over the past five years, as exchange-traded funds have captured an ever-larger share of the market.