ETFs (exchange-traded funds) are financial instruments that can consist of various types of securities, most commonly stocks or bonds. ETFs are traded on an exchange, which increases their liquidity. They usually track one of the market indices and are not actively managed. As a result, ETFs are the most cost-effective way of investing for the majority of investors.

wise wealth Core ETF is your personalized investment portfolio crafted from hand-picked ETFs. It includes different types of investments, such as stocks and bonds. Your exact portfolio depends on how much risk you’re willing to take, and how long you plan to hold your investments. By adjusting what assets your portfolio invests in, we tailor the risk level to suit you. You can also select a lower risk level if you prefer. Whether you're just starting your investment journey or have been investing for years, we handle the complicated stuff and aim to grow your money in a way that fits your needs.

Investing in a single, well-rounded ETF portfolio such as wise wealth Core ETF can be a great way to save time and money.

• You don’t have to spend a lot of time researching and choosing between thousands of ETFs and figuring out how to combine them into a balanced portfolio.
• Buying a single ETF portfolio requires fewer trades compared to building a multi-ETF portfolio, which could save you time and money.
• A single ETF can make it easier to reach the target weights with a lower minimum investment (just €50 for wise wealth Core ETF). And when you want to invest additional money or sell part of your portfolio, you won’t have to juggle several ETFs to keep to your target weights.

Getting started with ETF investing on wise wealth is straightforward and tailored to your needs. First, create a free wise wealth account. Once your account is set up, the next step is to complete your Suitability and Appropriateness assessment. This is a crucial step, as it helps us understand your investment experience, risk tolerance, and long-term financial goals. Based on your responses, we'll offer you a personalized ETF portfolio that aligns with your investment profile. You can also select a lower risk level if you prefer.

You can start investing from as little as €50. Just make sure you have sufficient available cash in your wise wealth account. With these steps completed, you're all set to embark on your ETF investing journey with us!

When choosing an ETF, wise wealth will consider the following factors:

• Issuer reputation: The ETF must be issued and managed by an internationally recognized company (such as Amundi, iShares, Vanguard, etc.) with a good reputation and long-term experience managing billions in investor assets.
• ETF size and age: The ETF must have sufficient assets under management, and/or have been on the market for a long time. These factors indicate greater liquidity and less price fluctuation.
• Costs: The ETF must have low costs (also known as Total Expense Ratio, or TER). A low TER positively affects potential long-term profit.
• Tracking error: The ETF must have a low tracking error. This means that the difference between the ETF’s returns and the returns of the index it emulates is small. A low tracking error indicates that the ETF is managed efficiently, reducing the risk of unexpected deviations that could impact investors’ returns.
• Regulation: The ETF must comply with the EU regulatory framework for managing and selling mutual funds, UCITS (Undertakings for Collective Investment in Transferable Securities). This framework serves to protect investors by defining minimum standards for funds. These include limiting which assets funds can invest in, holding a diversified portfolio, transparency regarding costs, and safeguarding investor’s money. This can give investors additional confidence in ETF management and protection.
• Dividend distribution and taxation: The ETF must be accumulating, which means all profits from dividends are automatically reinvested into the ETF. This is the best setup for most investors in Europe, as it could reduce tax burden and allow the deferral of tax payments until the ETF is sold (depending on your country of tax residence). The ETF must also be domiciled (i.e. legally incorporated) in a country that does not require withholding tax on profit distribution.
• Replication: We’ll prefer physically replicated ETFs where available. This means that the ETF directly owns the stocks and bonds that comprise the index. This reduces the investors’ exposure to third-party risks.