Start small, with low costs and broad diversification. You can now invest into over 2,000 ETFs free of charge - with the Scalable Broker.
There are risks associated with investing.
savings plan amount
Stay flexible: If your own financial situation changes, simply adjust the savings plan amount in the Scalable Broker with just a few clicks.
Invest in entire markets with a single investment – in the Scalable Broker you start with a savings plan amount of just 1 euro.
Save at your own pace: Whether at the beginning, middle or end of the month - the Scalable Broker offers a choice of several execution days. You can also set the savings plan interval: savings plans can be invested monthly, every two or three months.
Inflation Protection: Set a dynamic adjustment rate as a percentage by which your savings plan amount will automatically increase each year.
Finding the best index funds and putting together a portfolio from them is not exactly easy with the more than 2,000 ETFs that exist in Europe. You should pay attention to these criteria when making your selection:
Costs: When analyzing the fees of an ETF, the total expense ratio (TER), the bid-ask spread and the total cost of ownership are important. It is also important to note whether there are any additional costs. And to what extent the ETF passes on additional income, for example from securities lending, to the investors.
Replication method: is the ETF replicated physically or synthetically? And what does that mean for security and performance?
Tracking Error: How exactly does the ETF manage to track the performance of the index? Is the tracking error consistent? Will it be affected by fee changes or by the tax characteristics?
Liquidity: How high is the trading volume and how easy is it to buy or sell shares of the ETF in stressful situations? Does the quoted ETF price deviate from the value of the underlying index components under certain circumstances?
Tax considerations: What are the implications of an ETF reinvesting some of its earnings (partial accumulation) or distributing all of its earnings? Which issuing country leads to better treatment of foreign withholding taxes?
There is no right answer as to whether an ETF savings plan is superior to a one-time investment of a larger sum or vice versa. Both are good for different purposes. If you suddenly have a large amount of money at your disposal, in most cases it is better if you invest it in full instead of investing it in installments. A savings plan, on the other hand, is suitable for easily investing the money that you can put aside every month. Anyone who regularly invests a larger sum as a one-off investment and additionally via a savings plan takes advantage of the benefits of both investment options.