We Invest in All Major, Global Assets Classes for You.
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.
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.
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.
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.
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.
In order to choose from a universe of over 2,000 ETFs, we use a multi-stage process. Important quantitative and qualitative criteria are:
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 investment volumes and trading liquidity reduce the bid-ask spreads of the ETFs. This reduces trading costs and Total Expense Ratio.
The tracking error indicates the accuracy of tracking the index. We prefer ETFs with less deviation from the performance of the underlying index.
We prefer physically replicating ETFs over synthetic ETFs. Only in certain asset classes (e.g. Commodities) do we use synthetically replicating ETFs.
Our current investment universe includes the below ETFs. The weights of the ETFs differ for each client depending on the investment strategy.
Number of Securities
Total Costs p.a. (TER)
Vanguard FTSE Developed Europe ex UK UCITS
Vanguard S&P 500 UCITS
Xtrackers Nikkei 225 UCITS ETF
Asia Pacific Shares
Vanguard FTSE Developed Asia Pacific ex Japan UCITS
Emerging Market Shares
iShares Core MSCI Emerging Markets IMI UCITS
Vanguard FTSE 250 UCITS
Real Estate Europe
Xtrackers FTSE Developed Europe Real Estate UCITS
Real Estate USA
iShares US Property Yield UCITS
US Corporate Bonds
iShares $ Corporate Bond UCITS
European Corporate Bonds
iShares Core Euro Corporate Bond UCITS
UK Corporate Bonds
iShares Core £ Corp Bond UCITS
UK Government Bonds
Vanguard U.K. Gilt UCITS ETF
UK Government Bonds
Lyxor FTSE Actuaries UK Gilts 0-5Y (DR) UCITS
US Government Bonds
iShares $ Treasury Bond 7-10yr UCITS
European Government Bonds
iShares Core Euro Government Bond UCITS
Emerging Markets Government Bonds
iShares J.P. Morgan $ Emerging Markets Bond UCITS
L&G Longer Dated All Commodities UCITS