Investment Universe
How Your Portfolio is Put Together.
We Invest in All Major, Global Assets Classes for You.
Equities
Government Bonds
Corporate Bonds
Commodities
Real Estate
Cash
When investing, your capital is at risk. Learn more about risk here.
Your Global ETF Portfolio.
Access to these asset classes is gained exclusively through Exchange-Traded Funds (ETFs), which in turn, invest into 8,000 individual securities across approximately 90 countries.
What Are ETFs?
Exchange-Traded Funds are investment funds which track the performance of a market index, such as the FTSE 100. They are therefore also known as index funds. An ETF grants a broad access to stocks, bonds and other asset classes.
ETFs are much less expensive than actively managed mutual funds, as they do not incur expensive management fees. Since ETFs are traded on a stock exchange, they also offer far greater liquidity.
Why Do We Exclusively Use ETFs?
Broad
Diversification
ETFs are an ideal investment vehicle, as it is possible in a single transaction to invest in a whole region or asset class. They allow investors to build diversified portfolios without having to hold thousands of individual securities.
Low
Costs
The ETFs used by Scalable Capital have a total cost of 0.07% to 0.59% p.a. (0.16% p.a. on average), which corresponds to a cost saving of over 75% compared to conventional funds.
(Investment Management Association, own calculation)
High Liquidity
and Transparency
Exchange-Traded Funds are highly liquid. They also offer a high degree of transparency: on a daily basis investors can see the securities held by an ETF, its performance and the costs incurred.
How Does Scalable Capital Choose Your ETFs?
In order to choose from a universe of over 2,000 ETFs, we use a multi-stage process. Important quantitative and qualitative criteria are:
Low
Costs
Selection based on Total Expense Ratio (total cost of tracking the index) and total cost of ownership (external trading costs, bid-ask spreads, taxes).
High
Liquidity
High investment volumes and trading liquidity reduce the bid-ask spreads of the ETFs. This reduces trading costs and Total Expense Ratio.
Low Tracking Error
The tracking error indicates the accuracy of tracking the index. We prefer ETFs with less deviation from the performance of the underlying index.
Replication Method
We prefer physically replicating ETFs over synthetic ETFs. Only in certain asset classes (e.g. Commodities) do we use synthetically replicating ETFs.
Scalable Capital’s Investment Universe.
Our current investment universe includes the below ETFs. The weights of the ETFs differ for each client depending on the investment strategy.
Asset Class | ETF | Number of Securities | Total Costs p.a. (TER) | |
|---|---|---|---|---|
Shares | European Shares | Vanguard FTSE Developed Europe ex UK UCITS | 449 | 0.10% |
US Shares | Vanguard S&P 500 UCITS | 505 | 0.07% | |
Japanese Shares | Xtrackers Nikkei 225 UCITS ETF | 225 | 0.09% | |
Asia Pacific Shares | Vanguard FTSE Developed Asia Pacific ex Japan UCITS | 370 | 0.15% | |
Emerging Market Shares | iShares Core MSCI Emerging Markets IMI UCITS | 1910 | 0.25% | |
UK Shares | Vanguard FTSE 250 UCITS | 252 | 0.10% | |
Real Estate | Real Estate Europe | Xtrackers FTSE Developed Europe Real Estate UCITS | 104 | 0.33% |
Real Estate USA | iShares US Property Yield UCITS | 126 | 0.40% | |
Corporate Bonds | US Corporate Bonds | iShares $ Corporate Bond UCITS | 1,546 | 0.20% |
European Corporate Bonds | iShares Core Euro Corporate Bond UCITS | 1,759 | 0.20% | |
UK Corporate Bonds | iShares Core £ Corp Bond UCITS | 360 | 0.20% | |
Government Bonds | UK Government Bonds | Vanguard U.K. Gilt UCITS ETF | 40 | 0.07% |
UK Government Bonds | Lyxor FTSE Actuaries UK Gilts 0-5Y (DR) UCITS | 14 | 0.07% | |
US Government Bonds | iShares $ Treasury Bond 7-10yr UCITS | 12 | 0.07% | |
European Government Bonds | iShares Core Euro Government Bond UCITS | 303 | 0.09% | |
Emerging Markets Government Bonds | iShares J.P. Morgan $ Emerging Markets Bond UCITS | 299 | 0.45% | |
Commodities | Global Commodities | L&G Longer Dated All Commodities UCITS | 37 | 0.30% |
RISK WARNING
With investment comes risk. The value of your portfolio with Scalable Capital can go down as well as up and you may get back less than you invest.
A Stocks and Shares ISA or a SIPP may not be right for everyone and tax rules may change in the future.
Learn more about risk here.
DOCUMENTATION
Scalable Capital Limited
71-73 Carter Lane, London, EC4V 5EQ, United Kingdom | support@scalable.capital
Scalable Capital Limited is a limited company registered in England and Wales (Company No 09386303).
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