Retail
traders are increasingly looking for a safe way to store their capital in a
world of high-interest rates and very slow curbing of record-high inflation.
The zero-commission investment platform, BUX has decided to meet this demand and
offer instruments that were previously reserved for institutional traders only.
BUX has
added iBonds exchange-traded funds (ETFs) to its portfolio as part of its
collaboration with the investment market giant, BlackRock. These combine the key
characteristics of traditional bonds and ETFs, providing retail investors
across Europe with cost-effective access to the corporate bond market.
Four
iShares iBonds from BlackRock have been added to the offer, maturing in
December 2026 and December 2028, each available in both dollar and euro
versions. The specifications of the four new instruments are presented in the
table below:
Source: BUX
As BUX
claims, corporate bonds were previously reserved only for institutional
investors. Now, iBonds allow retail investors to access corporate bonds within
an ETF framework, which mirrors the behavior of typical bonds. It ensures the
transparency and liquidity of ETFs and the cost-efficiency of bonds.
“We
are delighted to bring iBond ETFs to our customers across Europe,”
commented Yorick Naeff, the CEO of BUX. “With iBond ETFs, investors can
benefit from the diversification and liquidity associated with ETFs, while also
enjoying the predictability of a set expiry, and benefits of income, much like
a bond.”
Happy to announce that as of today, everyone will get access to a new groundbreaking product: iBonds. It’s a new product from @BlackRock. It’s an ETF, but with a fixed maturity date. #investing #new
Investing involves risk. You can lose your investmenthttps://t.co/gUrmwRVgZR
— BUX (@bux) August 16, 2023
In May, the
BUX platform announced a name change from BUX Zero. According to Naeff,
dropping ‘Zero’ from the name shows the company’s commitment to building its
flagship app and expanding its current services with new instruments.
Traders Move to Passive
Investments
New
instruments for savers appeared a few months after BUX announced that it would
offer an ETF savings plan in Europe, which is in collaboration with BlackRock.
According to a survey conducted by BUX, Europeans are afraid to invest independently
due to a lack of proper knowledge, and the savings plan is designed to change
that. The latest bond offer is a natural extension of this.
The company
allows its users to create portfolios using iShares ETF funds, which provide
broad exposure to bonds and stocks in global markets. The BUX savings plan can
be customized, choosing from various iShares ETF funds, including equities ,
bonds, themes, sectors, factors, and balanced ETF funds.
“When
investing is made cost-efficient and accessible, millions of investors turn to
iShares ETFs as tools to build investment portfolios and achieve financial
well-being. We are delighted to be working with BUX; this partnership creates
an efficient way for investors across Europe to access the benefits of ETFs and
invest in global markets in a straightforward, accessible, and cost-efficient
format,” Christian Bimueller, the Head of Digital Distribution Continental
Europe at BlackRock, commented.
Filip
Kaczmarzyk, a Member of the XTB Management Board, confirmed traders’
willingness to seek passive investments a few months ago. In an interview with Finance
Magnates, he admitted that the firm’s clients were more likely to go for
stocks and ETFs instead of traditional CFDs.
“In
2022, as many as 44% of XTB clients in Poland invested in stocks and ETFs. In
Romania, this result was even higher, reaching a staggering 55%. Therefore, we
can expect that this trend will continue in the coming months, and even
years,” Kaczmarzyk explained.
Retail
traders are increasingly looking for a safe way to store their capital in a
world of high-interest rates and very slow curbing of record-high inflation.
The zero-commission investment platform, BUX has decided to meet this demand and
offer instruments that were previously reserved for institutional traders only.
BUX has
added iBonds exchange-traded funds (ETFs) to its portfolio as part of its
collaboration with the investment market giant, BlackRock. These combine the key
characteristics of traditional bonds and ETFs, providing retail investors
across Europe with cost-effective access to the corporate bond market.
Four
iShares iBonds from BlackRock have been added to the offer, maturing in
December 2026 and December 2028, each available in both dollar and euro
versions. The specifications of the four new instruments are presented in the
table below:
Source: BUX
As BUX
claims, corporate bonds were previously reserved only for institutional
investors. Now, iBonds allow retail investors to access corporate bonds within
an ETF framework, which mirrors the behavior of typical bonds. It ensures the
transparency and liquidity of ETFs and the cost-efficiency of bonds.
“We
are delighted to bring iBond ETFs to our customers across Europe,”
commented Yorick Naeff, the CEO of BUX. “With iBond ETFs, investors can
benefit from the diversification and liquidity associated with ETFs, while also
enjoying the predictability of a set expiry, and benefits of income, much like
a bond.”
Happy to announce that as of today, everyone will get access to a new groundbreaking product: iBonds. It’s a new product from @BlackRock. It’s an ETF, but with a fixed maturity date. #investing #new
Investing involves risk. You can lose your investmenthttps://t.co/gUrmwRVgZR
— BUX (@bux) August 16, 2023
In May, the
BUX platform announced a name change from BUX Zero. According to Naeff,
dropping ‘Zero’ from the name shows the company’s commitment to building its
flagship app and expanding its current services with new instruments.
Traders Move to Passive
Investments
New
instruments for savers appeared a few months after BUX announced that it would
offer an ETF savings plan in Europe, which is in collaboration with BlackRock.
According to a survey conducted by BUX, Europeans are afraid to invest independently
due to a lack of proper knowledge, and the savings plan is designed to change
that. The latest bond offer is a natural extension of this.
The company
allows its users to create portfolios using iShares ETF funds, which provide
broad exposure to bonds and stocks in global markets. The BUX savings plan can
be customized, choosing from various iShares ETF funds, including equities ,
bonds, themes, sectors, factors, and balanced ETF funds.
“When
investing is made cost-efficient and accessible, millions of investors turn to
iShares ETFs as tools to build investment portfolios and achieve financial
well-being. We are delighted to be working with BUX; this partnership creates
an efficient way for investors across Europe to access the benefits of ETFs and
invest in global markets in a straightforward, accessible, and cost-efficient
format,” Christian Bimueller, the Head of Digital Distribution Continental
Europe at BlackRock, commented.
Filip
Kaczmarzyk, a Member of the XTB Management Board, confirmed traders’
willingness to seek passive investments a few months ago. In an interview with Finance
Magnates, he admitted that the firm’s clients were more likely to go for
stocks and ETFs instead of traditional CFDs.
“In
2022, as many as 44% of XTB clients in Poland invested in stocks and ETFs. In
Romania, this result was even higher, reaching a staggering 55%. Therefore, we
can expect that this trend will continue in the coming months, and even
years,” Kaczmarzyk explained.
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- Source: https://www.financemagnates.com//forex/beyond-institutional-bux-unveils-corporate-bond-access-for-the-masses/
