Saving with 0% purchase fee ETFs
At neon, we want to empower you to take control of your finances, without the burden of additional costs. We have done this from the start with the free bank account. And now, with our partner Invesco, we also extend this philosophy to our investment plan. How? By giving you the opportunity to invest in two selected ETFs with 0% trading fees on purchase when you use investment plans. If you're wondering what investment plans are, we recommend you read our blog post first. However, if you want to find out more information about our limited offer with Invesco (and how we selected the two 0%-fee ETFs), keep on reading this article.
Why the ETF Global Stocks (FTSE)?
Why the ETF Global Stocks ESG Climate Paris Aligned?
Who is Invesco?
Invesco is a trusted and renowned financial services company with over 85 years of experience in the industry. Invesco is an independent asset manager, one of the largest issuers of investment products and they are as committed to delivering exceptional value to their users via their products as we at neon are to providing you with our everyday account app. As we want to change the way people have access to investing, we decided to partner together and offer you 0% trading fee ETFs to start with. Our joint ambition to change the market with innovative products makes us a pETFect duo.
About the offer
The investment plan gives you the opportunity to select up to three shares or ETFs from the neon invest universe each month and invest a monthly amount of your choice. As we have no custody account fees and low trading fees, you can save in the long run with low monthly costs (click here for more details on the investment plan). With the Invesco offer, we make it even better: with the investment plan, you pay no trading fees on the purchase of two selected Invesco ETFs. Together with Invesco, we will pay the trading fees back to your main account on the next working day. Only the state stamp duty and the product costs (TER) of the ETF remain.
You can find these two Invesco 0% trading fee ETFs in the neon app, under the «invest» tab. They are named as follows:
- Global Stocks (FTSE)
- Global Stocks ESG Climate Paris Aligned
Read on for more information about why we selected these Invesco ETFs.
Why did we choose the Global Stocks (FTSE) ETF?
We selected this ETF because it is a broad and popular global ETF, covering 90-95% of the investable market capitalisation and invested in companies which are playing a key role in the world's economic growth. Plus, it offers an especially low TER (Total Expense Ratio) of 0.15%. Here are more details about these decision criteria:
- The 1900+ companies composing this ETF represent a variety of sectors of activity: Information technology (22.27%), financials (15.32%), Health care (11.85%), Consumer discretionary, meaning: Retail, Media, Entertainment, etc. (11.49%), Industrials (10.92%) and further sectors. They are also present in the whole world, with a wide geographic allocation including the US (60.38%), Japan (6.80%), China (3.67%), United Kingdom (3.63%), France (3%), Switzerland (2.69%) and in 43 further developed and emerging markets in the world.
- This ETF is also the cheapest when looking at similar ETFs on the stock exchange:
- It is cheaper than the Vanguard FTSE All-World whose TER is 0.22% (ISIN: IE00B3RBWM25)
- It is also cheaper than the MSCI world counterparts (MSCI ACWI), second cheapest on the market (TER 0.17% for SPDR MSCI ACWI IMI UCITS ETF)
- Most competing MSCI ETFs are well above 0.2% in terms of TER (except if you use an American broker like Interactive Brokers and buy an American ETF that European brokers cannot offer).
- You can start investing in this ETF with only 5 CHF. With the largest competitors in this space, the minimum lies between 70 and 100 CHF.
Cherry on the cake: This ETF was rated A in terms of ESG Fund Rating (covering 98.6% of ESG criteria). The term ESG is used for various investment products (including ETFs) that take environmental, social and governance factors into account when selecting and weighting securities. More information here (in German).
If you want to learn more about the Global Stocks (FTSE) ETF, you can find more information here. If you want to precisely see which stocks are included in this ETF, you can find more details here.
Why did we choose the Global Stocks ESG Climate Paris Aligned ETF?
We chose this ETF because of its «completeness» in terms of sustainability, and because it is a broad ETF despite being sustainable. It is a real sustainable ETF because it follows both Environmental, Social and Governmental (ESG) criteria and Paris Alignment Benchmarks (PAB). Meaning that companies which are not following the recommendations of ESG and PAB measures are excluded from this ETF. In addition, it is not only focussing on a specific sector only, which makes its breadth interesting for us. Here are more details about these decision criteria:
- On the sustainability front, this ETF includes companies following Environment, Society and Governance criteria, including companies with even higher ESG metrics (and business exclusions). Plus, all companies in this ETF exceed the minimum standards of the EU Paris-Aligned Benchmark (meaning that these companies are aligned with a 1.5°C climate scenario as they contribute to reducing physical climate risk and to a transition to a low carbon economy). Therefore, the ETF is very compelling in terms of sustainability.
- Yet, it is still a broad, well diversified ETF that covers 650+ stocks and therefore provides exposure to a lot of different sectors.
This ETF also offers a low TER of 0.19% compared to similar ETFs on the market. For instance, the cheapest MSCI world ESG ETF, according to justetf.com, is the iShares MSCI World ESG Screened UCITS ETF (ISIN: IE00BFNM3K80) with a 0,20% TER. However, this ETF is only comparable in terms of its ESG alignment (corporate risk management and investor view of sustainability), since it is not aligned with the Paris Agreement (global ecosystem view of sustainability).
If you want to learn more about the Invesco Global Stocks ESG Climate Paris Aligned ETF, you can read the product facsheet here.
Please read this before opening neon invest!
This blog post is an offer according to FIDLEG, Art. 3 lit. g, and is aimed to inform about our «0% trading fee ETFs». However, please note that we do not advise you to buy or sell any specific financial instruments. In other words: It is up to you if you want to buy or sell these 0% trading fee ETFs or not. That's why, before you engage in neon invest, you should always seek guidance from independent experts and remember that investing involves inherent risks. It's crucial to only invest money that you can afford to lose – in the worst case all of it. And finally, past performance of financial instruments never predicts the future. If you want to read the complete version of this disclaimer in proper legalese, please head this way.
With this offer, we want to make ETFs better known and more accessible in Switzerland. Above all, however, we want to offer our users good products for long-term investments. Together with Invesco, we have therefore decided to waive some of the fees for our users when they use the neon investment plan. This is possible because we greatly reduce the returns achieved with this ETF compared to our normal (already very low) returns from neon invest.
You can find more information on how we earn money on our Partner philosophy blog.
And if you want to know how neon invest compares to Yuh, take a look at this blog post.