InvestEngine reaches a key AUM milestone in a climate of ETF demand. InvestEngine, the investment platform that offers commission-free ETF trading, has announced it has reached a major milestone, surpassing a figure of £500 million in assets under management or AUM.
This achievement is driven at least in part by a +70.0% increase in assets at the firm, over the past four months, highlighting the platform’s impressive growth trajectory.
What’s driving InvestEngine’s success?
One of the key factors behind InvestEngine’s rapid growth is the increasing demand for ETF and index investing among UK private clients, something we highlighted at larger rivals Hargreaves Lansdown earlier this week.
ETFs, or Exchange-Traded Funds, are designed to track the performance of specific indices, sectors, investment themes and styles, such as growth or value.
Why are ETFs so popular?
ETFs have proved highly popular with investors for several reasons:
ETFs can provide instant diversification to a portfolio, they are usually liquid and can be traded just like stocks and shares.
ETFs often have lower fees than rival mutual funds and other collectives, making them very appealing to cost-conscious investors.
What sets InvestEngine apart in the ETF investing space?
InvestEngine has made a name for itself thanks to a user-friendly platform that simplifies ETF investing.
The firm currently offers investors access to over 620 ETFs drawn from providers like Vanguard, iShares, Invesco, and JP Morgan.
InvestEngine’s commission-free trading structure and automated investing features have been a big draw and the firm amassed more than 50,000 customers.
What other services does InvestEngine provide?
In addition to its core ETF investing platform, InvestEngine has expanded its offerings to include self-invested personal pension (SIPP) accounts and a regular savings plan.
The SIPP accounts allow individuals to take control of their retirement planning, while the Savings Plan enables automated, regular investments to help build long-term wealth more efficiently.
What’s next for InvestEngine and the ETF market?
With the global ETF market projected to grow to over $20 trillion in AUM by 2026, according to data from, PWC, the future looks bright for both InvestEngine and the wider ETF investing space.
However growing a business in ETFs is one thing, monetizing it over the long term, is quite another.
It remains to be seen if a commission-free model can deliver the necessary critical mass, and or, revenues and profitability.
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