EXCLUSIVE Monzo partners with BlackRock to offer 11 ETFs
Monzo has teamed up with BlackRock's iShares arm for the launch of an Exchange Traded Fund service designed to attract more investors.
The digital bank with around 11million UK customers is now offering 11 ETFs from fund manager BlackRock's iShares range.
Customers can invest in a few taps using the bank's app starting from £1.
Monzo already allows investors to invest in three BlackRock multi-asset funds, through its ready-made Monzo Investments service, but the latest move will see investors have more choice in low-cost ETFs.
The new ETF offering will be rolled out to existing customers from today and will be available to new customers in the coming weeks.
Customers can invest in the 11 ETFs through an Isa or General Investment account.
ETFs pool investors' money together to buy a basket of investments. They are traded on the stock market, priced daily, and easily bought and sold.
Most ETFs tend to be passive investments that track a set index, although there are increasing numbers of active ETFs that have managers who try to pick investments they think will outperform.
The ETFs Monzo offers are thematic ETFs focused on tech and global growth as well ones which track the FTSE 100 and S&P 500. These are:
iShares Core S&P 500
iShares Core FTSE 100
iShares MSCI Emerging Markets
iShares Core MSCI Europe
iShares Core MSCI World
iShares NASDAQ 100
iShares Healthcare Innovation
iShares Metaverse
iShares Global Clean Energy Transition
iShares Blockchain Technology
iShares Automation and Robotics
BlackRock ETFs are available on many retail platforms, without the need to sign up to Monzo or any other bank.
But the idea behind it is that it will be easier and quicker for people to get investing if they can do it from their banking app, all under one roof.
Nearly half of people have put off investing because the overwhelming number of choices makes it impossible to know where to start, according to Monzo research.
Jane Sloan, head of iShares for Europe at BlackRock ,says: 'This offering paves the way for millions of people to have the opportunity to grow their money with confidence, starting from as little as £1.'
Andy Smart, chief product officer at Monzo, said: 'This new ETF offering is the next step in making investing even easier and more personal.'
When the digital bank opened the waiting list for Monzo Investments in September 2023, more than 200,000 customers rushed to sign up to the new investment service waiting list in two days.
The Monzo Investments platform fee applies for investors buying ETFs - this is 0.45 per cent for free users and 0.35 per cent if you're on a Monzo Plus, Premium, Perks or Max subscriber plan - which range from £5 a month to £17 month.
For example, a £1,000 investment would have a fee of £4.50 a year for free users and £3.50 a year on top of the Plus, Premium, Perks or Max plan fees.
Vanguard by comparison, offers a wide range of low-cost index tracking funds, has an account charge of 0.15 per cent.
While AJ Bell has a £5 dealing charge for ETFs and a 0.25 per cent annual account charge. Trading 212 offers fee free trading for ETFs.
Compare the best DIY investing platforms
Investing online is simple, cheap and can be done from your computer, tablet or phone at a time and place that suits you.
When it comes to choosing a DIY investing platform, stocks & shares Isa, self invested personal pension, or a general investing account, the range of options might seem overwhelming.
> This is Money's full guide to the best investing platforms
Every provider has a slightly different offering, charging more or less for trading or holding shares and giving access to a different range of stocks, funds and investment trusts.
When weighing up the right one for you, it's important to to look at the service that it offers, along with administration charges and dealing fees, plus any other extra costs.
We highlight the main players in the table below but would advise doing your own research and considering the points in our full guide to the best investment accounts.
Charles Stanley Direct * 0.30% Min platform fee of £60, max of £600. £100 back in free trades per year £4 £10 Free for funds n/a More details
Etoro* Free Stocks, investment trusts and ETFs. Limited Isa, no Sipp. Not available Free n/a n/a More details
Fidelity * 0.35% on funds £7.50 per month up to £25,000 or 0.35% with regular savings plan. Free £7.50 Free funds £1.50 shares, trusts ETFs £1.50 More details
Freetrade * Basic account free, Standard with Isa £5.99, Plus £11.99 Stocks, investment trusts and ETFs. No funds Free n/a n/a More details
Hargreaves Lansdown * 0.45% Capped at £45 for shares, trusts, ETFs Free £11.95 Free Free More details
Interactive Investor* £4.99 per month under £50k, £11.99 above, £10 extra for Sipp Free trade worth £3.99 per month (does not apply to £4.99 plan) £3.99 £3.99 Free £0.99 More details
InvestEngine * Free Only ETFs. Managed service is 0.25% Not available Free Free Free More details
iWeb Free £5 £5 n/a 2%, max £5 More details
Trading 212* Free Stocks, investment trusts and ETFs. Not available Free n/a Free More details
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