IG targets UK clients with BlackRock ETF model portfolios
IG Group, the online trading platform, is set to offer its UK clients access to ETF based products based on BlackRock model portfolios starting in 2016.
The portfolios will be available through IG’s stockbroking platform. The services provider is also known for its contracts for difference and spread betting services, claiming to be the world’s biggest provider of both. Offering access to ETF based investments is a way to “broaden its offering to appeal to sophisticated investors and active traders,” IG said.
Ian Peacock, head of UK and Ireland at IG Group, said: “The launch of our stockbroking platform last year provided our clients with the latest in data, pricing and trading technology and the launch of these ETF portfolios is a natural progression in our commitment to provide our clients with an increasingly comprehensive offering. Portfolios composed of passive instruments, such as ETFs, have the potential to disrupt the investment management industry, challenging the traditional high-fee approach to asset management.”
“ETFs have become much more mainstream in the UK and Europe, and providing ETF-based portfolios will help to significantly broaden our reach as investor demand for these products continues to grow. As the clear market leader in the ETF market, BlackRock is a natural choice to provide expertise. This initiative will include marketing and educational efforts to raise awareness and understanding of ETFs, and we consider this to be a significant long-term opportunity.”
Michael Gruener, co-head of Sales for iShares EMEA at BlackRock, added: “The global ETF market is currently growing at a rate of 20% per annum and while this growth has traditionally been driven by the use of ETFs as individual building blocks, we are seeing a growing number of integrated ETF-based model portfolios that provide investors with a low cost, transparent, and flexible way to invest. While the availability of ETFs and ETF-based portfolios through platforms is still limited in the UK compared to many other European countries, solutions like the IG Model Portfolios are instrumental to raising awareness and understanding of ETFs within the market.”