Munich, August 16, 2023* - Clients of Scalable Capital, a leading investment platform in Europe, can now invest in a new form of bond ETFs. As a full service broker, Scalable Capital provides retail investors with valuable investment solutions and continues to expand its range of fixed income products. With iShares iBonds, clients are given access to a suite of products that combine the diversification, liquidity and tradability of an ETF with the fixed maturity of a bond. The issuer, BlackRock, one of the world’s leading providers of investment, advisory and risk management solutions, is rolling out iBonds in Europe for the first time. They consist of a diversified set of bonds with similar maturity dates. After a fixed period, the ETFs mature and return a final pay out to investors, in addition to regular interest payments.
This BlackRock product suite, which is bundled into ETFs and has fixed redemption dates, was so far only available in the United States. Julius Weller, Vice President Broker at Scalable Capital: "With the turnaround in interest rates in Europe, bonds have become a relevant asset class again. While stock investing is already easily accessible for retail investors, this is not the case for bonds. High one-off investments with concentrated risk in one company or country as well as complex structures make it challenging. We want to change that, because bonds can help to stabilise a portfolio, especially in volatile markets."
Christian Bimueller, Head of Digital Distribution Continental Europe for iShares and Wealth at BlackRock: “We are excited to broaden access to the bond market and make investing accessible and affordable for everyone. iBonds ETFs are designed to mature like a bond, trade like a stock and diversify like a fund, all in a cost-efficient and transparent ETF wrapper.”
Demand for European bond ETFs reached record levels in the first six months of 2023. During the same period, bond ETF investments exceeded 2 trillion US dollars globally for the first time, according to BlackRock data. After all, at least in Europe's low interest rate environment, it has not been possible for more than a decade to achieve attractive yields on moderate-risk bonds.
The iBonds combine the advantages of investing in individual bonds with the advantages of a classic ETF. Unlike investing directly in bonds, risk is spread across many issuers from a variety of sectors and countries. Buying and selling on the stock exchange is also possible at any time. At the same time, investors experience the same benefits as with classic bond investments, namely the fixed term of the iBonds as well as regular interest payments and a predictable return to maturity.
In the initial offering, iBonds will be available with investment-grade corporate bonds denominated in euro or US dollar with maturities of three or five years.
In the Scalable Broker, the iBonds can be bought without order fees - as part of the PRIME partnership with BlackRock - from an order volume of 250 euro. Savings plans are free of charge as well. In both cases merely product costs, spreads and inducements may apply.
With 2.6% p.a. interest on cash balances in PRIME+, a growing selection of bonds with interest rates of up to 3.6% p.a. and a managed bond portfolio (InterestInvest) in digital wealth management, Scalable Capital today offers numerous opportunities to benefit from higher interest rates.
About Scalable Capital
Scalable Capital is a leading digital investment platform in Europe that makes investing easy and affordable for everyone. Clients of the Scalable Broker can trade 7,500 stocks, 2,200 ETFs, and 2,000 funds and other exchange traded products to build their portfolios and earn interest on their cash balance. The PRIME subscription enables unlimited trading on all orders over 250 euro. Clients in PRIME+ receive an additional 2.6% per year on uninvested cash up to 100,000 euro. People can also have their investments professionally managed via the digital wealth management service. More than 600,000 clients already use the services.
Scalable Capital was founded in 2014 and is active in Germany, Austria, France, Italy, the Netherlands, Spain, and the UK. The investment firm, which is supervised by BaFin and the Bundesbank, has more than 15 billion euros on its platform. In addition to its business for private clients, the company operates B2B solutions. Its long-standing partners include ING, Barclays Bank in the UK, the robo-advisor Oskar, and the Santander Group in Spain. Scalable Capital employs more than 450 people at its offices in Munich, Berlin, and London. Together with the founding and management team around Erik Podzuweit and Florian Prucker, they strive to empower everyone to become an investor.
More information at: www.scalable.capital
VP Communications and Public Affairs
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate
iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 1,300+ exchange traded funds (ETFs) and $3.21 trillion in assets under management as of June 30, 2023, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock.