Monzo launched a brand new "Build Your Own" investment feature with 11 different ETFs on offer earlier this week. The new feature includes iShares ETFs from BlackRock focusing on themes like tech and global growth. The ETFs have been curated based on feedback from Monzo's customers and aim to reflect their interests.
The new "Build Your Own" feature will sit along Monzo's "Keep it simple" investment option, where customers can pick from three ready-made funds designed to suit different risk levels. The feature is part of Monzo's attempts to meet customers' requests for more investment choices within the app.
It comes after Monzo's latest research, which revealed that 47% of Brits put off investing because of the overwhelming number of choices on the market. However, 3 in 5 (63%) said they'd be more likely to invest if they were offered a simpler way to do so.
Andy Smart, Chief Product Officer at Monzo, said: “We know how much our customers love investing with Monzo - and they’ve told us they want simple, clear options with just the right amount of choice. This new ETF offering is the next step in making investing even easier and more personal. Whether you’re just getting started or ready to go further, we’re here to help you invest with confidence - all through the Monzo app.”
Monzo's research also revealed that almost two-thirds (64%) of those surveyed believed having all their financial activity in one app would make life easier, while over half (58%) were interested in investing in themes they personally cared about. However, 55% said choice overload left them feeling stuck and unsure, as they did not have the confidence to pick investments from long lists (which can include thousands of funds).
Monzo's new feature gives customers more choice than their existing ready-made investments, but still keeps the list short enough to prevent it from becoming overwhelming.
Jane Sloan, Head of iShares for Europe at BlackRock added: “Monzo's expanded investment offering is a game-changer for individuals looking to build their own investment portfolios. With a carefully selected list of iShares ETFs, people can invest according to their investment interests and financial goals. This offering paves the way for millions of people to have the opportunity to grow their money with confidence, starting from as little as £1.”
How will the new Build Your Own ETF investment feature work?
The new Build Your Own investment feature allows investors to choose from 11 hand-picked ETFs across various themes and regions. The ETFs have been selected based on Monzo customer feedback to reflect their interests. Customers will be able to:
- Start investing with just £1
- Automate their investing with features like round-ups and scheduled deposits
- Track their progress with a range of graphs and charts that show how their investments are performing over time
- Build a unique portfolio based on what's important to them
These features are also available via Monzo's ready-made funds option, which works well if you want to pick a basket of investments based on your risk level. If you choose to invest with Monzo, you can either open an ISA or a General Investment Account (GIA).
Monzo charges a 0.45% platform fee for investing through them. You'll pay a reduced 0.35% platform fee if you are a Monzo Plus or Premium member. However, there's also typically a BlackRock fee that is charged on top. The exact cost you'll pay will depend on the type of fund you choose.
What are the new ETFs available through Monzo's investing feature?
The 11 ETFs on offer through Monzo's new feature include:
- iShares Core S&P 500 UCITS ETF
- iShares Core FTSE 100 UCITS ETF
- iShares MSCI Emerging Markets UCITS ETF
- iShares Core MSCI Europe UCITS ETF
- iShares Core MSCI World UCITS ETF
- iShares NASDAQ 100 UCITS ETF
- iShares Healthcare Innovation UCITS ETF
- iShares Metaverse UCITS ETF
- iShares Global Clean Energy Transition UCITS ETF
- iShares Blockchain Technology UCITS ETF
- iShares Automation and Robotics UCITS ETF
A good chunk of the ETFs on offer are geographical in nature, including exposure to the US, Europe, or the UK, as well as a global fund. There are also themed ETFs, including the option to invest in tech ETFs like blockchain, as well as automation and robotics. Healthcare and clean energy funds are also available.
Are the new BlackRock ETFs available to all Monzo customers?
Monzo is rolling out this new feature gradually, so not all customers will have access to the ETF feature yet. However, it's expected that all customers will have access to the feature within a few weeks. In the meantime, those interested in investing with Monzo can take a look at their three ready-made funds designed to suit different risk levels. You can find out more about investing with Monzo by reading our independent Monzo review or checking out the Monzo app.
Monzo "Build Your Own" ETF investing alternatives
Monzo's new feature isn't the first of its kind. There are many investing platforms that offer similar choices. Monzo's unique selling point is that it keeps its options fairly limited to prevent overwhelm. But, if you want more options, you may want to take a look at alternatives. The table below sums up some of the other options on offer.
| AJ Bell Dodl* | Moneybox | Freetrade* | |
| Ready-made portfolio | YES (via AJ Bell) | YES | NO |
| ETFs | YES | YES | YES |
| Shares | YES | YES | YES |
| ISAs | YES | YES | YES |
| GIAs | YES | YES | YES |
| Pensions | YES | YES | YES |
| Platform fee | 0.15% per year (minimum £1 per month) | £1 per month + 0.45% per year | £0 to £9.99 per month (need to pay at least £4.99 per month if you want an ISA) |
| Trustpilot score | 4.6 out of 5.0 | 4.3 out of 5.0 | 4.1 out of 5.0 |
As you can see, there are other options on the market that have a similar offering, including ready-made portfolios as well as a selection of ETFs. There are also opportunities to invest in tax wrappers. That said, the options above offer a lot more choice which can be overwhelming for a beginner looking to build their own ETF portfolio for the first time.
Monzo's new investing option could be a good starting point for those looking to venture beyond ready-made portfolios for the first time. It offers limited choice but a wide enough selection to appeal to investors with varying interests. Monzo's fees may not be the lowest on the market at 0.45% per year, but they may well suit someone who is happy to pay for the convenience of investing through their bank.
If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following links can be used if you do not wish to help Money to the Masses or take advantage of any exclusive offers - AJ Bell Dodl, Freetrade
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