XTB, a global investment company, announces the launch in Romania of a new financial product dedicated to passive investing: XTB Investment Plans. These plans represent a straightforward and effective approach to constructing a diversified portfolio aligned with individual objectives. With a minimum investment of 75 lei, one can create a plan comprising up to nine ETFs. The maximum number of plans possible for each investor is ten, allowing them to choose from a range of over 300 exchange-traded funds spanning various sectors and countries.
XTB Investment Plans represent the first version of a product designed to evolve alongside market trends and user requirements. It is the outcome of meticulous development, grounded in principles of simplicity, diversity, accessibility, and transparency.
”Following Fractional Shares, we have decided to launch a new product for passive investing firstly in Romania and give our clients exclusive access to the Investment Plans. The rollout model, that’s widely adopted among fintech companies, enables our teams to fine tune details before a wider go-live, reduce the product’s time to market and in the end, strengthen our competitive advantage. We may also apply this approach when launching other new products in the future,” says Omar Arnaout, CEO of XTB.
Romania is the market where many of the XTB clients start investing by buying ETFs. Their percentage is constantly rising – in 2021 it was 50% and in August 2023 it reached58%.
In a survey conducted by XTB Romania, ETF investors highlighted that these instruments offer several significant advantages in the long and very-long-term: very low costs, high liquidity, and diversification. An advantage is also the security provided by exchange-traded fund administrators with a proven track record. At the same time, the ease of replicating a stock index (through index-based ETFs) was mentioned, as well as the passive nature of the investment, which allows busy investors to let their portfolio work autonomously.
”All of our data clearly demonstrate the popularity of ETFs in Romania. As the Investment Plans make passive investing even simpler and more intuitive, it can be an additional booster for this asset class. We are committed to refining and expanding the Investment Plans. Soon, recurring payments will facilitate long-term investing, enabling clients to effortlessly work towards their goals based on their risk profile and preferred horizon. As enhancements roll out, clients will be promptly informed,” says Irina Cristescu, General Manager of XTB Romania.
With the new product, a minimum investment of just €15, 75 RON, or $15 opens the doors to personalized investment strategies. Extensive details about ETFs, including ratings (based on data from Morningstar), financial performance, and portfolio composition, are at their fingertips. While crafting and modifying plans, clients can track their performance over the past 5 years, gaining valuable insights into their investments.
XTB Investment Plans takes a bold stance with 0% commission on ETF investing (up to €100,000 in monthly rolling) and free maintenance of Plans. This means the investment grows without the drag of unnecessary costs. Nonetheless, the news product places control in the hands of the investor. The absence of time constraints allows clients to adapt their investment horizon to their unique objectives. Taxes mirror those associated with purchasing ETFs and stocks.
With the new product, customers will be able to choose the exact amount they want to invest in their Investment Plan without having to pay attention to each individual instrument. Specifically, after setting the amount they want to allocate to build their Investment Plan, clients will be able to set a specific percentage of this amount to be allocated to each ETF in their Investment Plan.
Last but not least, after determining the amount they wish to allocate to build their Investment Plan, customers will be able to allocate a percentage of this sum to each ETF in the plan, without the need to individually focus on each instrument.
For more information about Investment Plans, please visit the website: ro.xtb.com/planuri-de-investitii