WisdomTree said today (15 July) it has partnered with Trading 212, a UK investing app, to offer six exchange-traded fund (ETF) model portfolios.
Through this collaboration, UK and European retail investors using Trading 212 can now access WisdomTree’s pre-built and carefully constructed core and thematic model portfolios at no additional cost.
The offering includes three core model portfolios and three thematic model portfolios. The core models are designed to suit different risk tolerance levels, allowing investors to choose between conservative, moderate or aggressive portfolios. The thematic models provide multi-thematic exposure to around 15 growth themes and targeted exposure to environmental and tech investment themes.
The six model portfolios are exclusively built with exchange-traded funds (ETFs) and exchange-traded commodities (ETCs) and with an open architecture approach, allowing investors to benefit from the efficiency, flexibility and low cost of the underlying wrappers.
The core portfolios give diversified exposure to equities, bonds and commodities:
• Conservative: Provides diversified exposure across asset classes with a focus on lower risk by allocating a higher exposure to bonds. While the equity exposure is reduced compared to the moderate portfolio, it remains at a meaningful weight to enable a stable level of growth.
• Moderate: Aims to deliver steady growth potential with moderate volatility through a balanced exposure to equity, bonds, and commodities.
• Aggressive: Seeks to maximise long-term growth through higher exposure to equities. Commodities are maintained to counterbalance the higher volatility typical of this investment approach.
Thematic Portfolios:
• Multi-thematic: Delivers diversified exposure to around 15 relevant themes, across three megatrends – Technological Shifts, Environmental Pressures and Demographic & Social Shifts. Includes themes such as artificial intelligence, cybersecurity, renewable energy, decarbonisation, sustainable food, etc.
• Tech: Provides targeted exposure to the subset of tech-focused themes that we find in the Multi-thematic portfolio.
• Environmental: Provides focused exposure to the subset of environmental themes that we find in the Multi-thematic portfolio.
Adrià Beso, head of digital distribution, WisdomTree, said: “For many retail investors, building a robust portfolio from scratch may be too time-consuming and can seem daunting. This is where model portfolios can empower investors, as they remove the need for extensive research and can help allocate to a diversified portfolio which aligns with their investment needs and risk tolerance. Through our new collaboration with Trading 212, we are bringing our institutional expertise to their UK and European investors, helping them to meet their long-term investing goals.”
David Delchev, head of trading and product, Trading 212, added: “The opportunity to provide diversified portfolios powered by ETFs to our customers through an innovative provider like WisdomTree is an exciting development. WisdomTree brings a wealth of institutional knowledge and a track record of building model portfolios for professional investors, that our customers can leverage in their wealth building journey.
“These model portfolios are available on our app as ready-made pies, that are easy to invest in and do not carry any additional ongoing fees outside the fees charged by the underlying ETFs and ETCs comprising the portfolios. We believe that building wealth is a habit, and now our users can automate this with a ready-made pie.”
Trading 212 is a UK commission-free investing app, available to investors in the UK, Europe and Australia Trading 212 with £4bn in client assets and money under administration and 3 million lifetime funded accounts.
