Two new investment strategies with Scalable Wealth
December 10, 2024 |
With World Portfolio Classic + Gold and Value & Dividend, we are enriching our automated investment strategy offering.
At Scalable, we are continuously refining our investment strategies in order to offer our clients the best possible investment solutions. To improve our offer, we are now launching two new variations of our most popular portfolios.
World Portfolio Classic + Gold
Our World Portfolios are broadly diversified ETF portfolios investing in worldwide markets without setting any specific focus. This makes them suitable for mid to long term investments and a popular choice among our clients. Additionally to the already available Classicand ESG option, we now also offer an addition with gold: the World Portfolio Classic + Gold. This enhancement aims to achieve a balanced risk-return profile while preserving the potential for long-term growth. The main advantages of adding gold are:
- Diversification: Historically, gold has shown a low correlation with other asset classes such as equities and bonds, meaning that the price of gold often moves independently of other investments, which can reduce the overall portfolio risk.
- Inflation hedge: Additionally, gold has shown to be resilient against inflationary and monetary shocks.
- Store of value: The addition of gold caters to investors seeking a reliable store of value and a protective asset during economic uncertainties.
The gold investment is realised via an ETC (Exchange-Traded Commodity), which is backed by physical gold. This means that you have a delivery claim to the gold, i.e. you can have the precious metal delivered to you when you liquidate your portfolio, for example. This has the advantage that you can enjoy the same benefits in Germany as with an investment in a physical gold bar. For a holding period of more than one year, price gains on gold are exempt from tax. With only 0.12% ETF costs, it equals the World Portfolio Classic and is therefore cost efficient.
The portfolio can be chosen with an equity allocation from 40-90% in 10% steps in order to select the individual risk-reward-ratio. It needs to be considered that the performance of gold is strongly dependent on market movements and volatile gold prices can cause strong fluctuations. Therefore, the investor's individual risk tolerance needs to be carefully evaluated.
The new strategy can be found under Wealth Global. Read more about the key characteristics and advantages of World Portfolio Classic + Gold.
Value & Dividend
The Value Portfolio has been a popular choice among our Wealth Select strategies, capitalising on the growth of fundamentally undervalued stocks, a concept championed by Star Investor Warren Buffet. In order to increase its potential returns even more, it is now enriched by a stable source of income of high-dividend stocks and is available as the new Value & Dividend portfolio.
Dividend strategies have been highly requested and the addition is a fitting supplement to the value factor. With this change, the overall diversification of the portfolio has been increased with eight instead of previously three ETFs and a greater regional coverage. In addition to the existing exposure to the USA, Europe, and Emerging Markets, the portfolio now also covers Japan and the Pacific region.
The new strategy can be found under Wealth Select. Read more about the key characteristics and advantages of the Value & Dividend portfolio.
Portfolio management by Scalable
Like the other portfolios in digital wealth management, the World Portfolio Classic + Gold and the Value & Dividend investment strategy are continuously monitored and reset to their initial weighting if necessary. The Scalable Capital team also monitors the ETF market and ensures that the most suitable products are always used in the portfolios.
With savings plan instalments starting at 20 euros per month, digital wealth management is easily and cost-effectively accessible to everyone. As with all strategies, the costs are 0.75 per cent of the investment volume per year for management plus product costs. The fee is 0.69 per cent for funds invested in excess of EUR 100,000 and a reduced fee of 0.49 per cent for investments in excess of EUR 500,000.
Risk Disclaimer – There are risks associated with investing. The value of your investment may fall or rise. Losses of the capital invested may occur. Past performance, simulations or forecasts are not a reliable indicator of future performance. We do not provide investment, legal and/or tax advice. Should this website contain information on the capital market, financial instruments and/or other topics relevant to investment, this information is intended solely as a general explanation of the investment services provided by companies in our group. Please also read our risk information and terms of use.
Scalable Capital
Digital wealth management & broker with flat rate
Scalable Capital is a leading fintech in Europe that brings people and technology-based investing together. Scalable Capital offers digital wealth management and a broker with a trading flat rate. In digital wealth management, the company creates and manages globally diversified ETF portfolios for its customers with, if desired, sustainable investment strategies. The broker enables customers to trade shares, ETFs, cryptocurrencies, funds and derivatives themselves and to conclude savings plans.