Providers eye fractional ETF dealing services to meet pension and robo-advice demand

ETFs and passives are becoming particularly popular in pensions

Anna Fedorova
clock • 4 min read

Investment services providers are beginning to offer fractional share dealing on exchange-traded funds (ETFs) to meet investor demand for lower entry levels on the vehicles.

Currently, most platforms only allow ETFs to be traded in whole shares, which can often be £100 per share or more, making it harder for retail investors to utilise these vehicles if they are looking to invest smaller amounts on a regular basis. Hargreaves Lansdown passive investment manager Adam Laird said he has identified a particular need among pension investors, who now have more investment flexibility following the introduction of pension freedoms last year. He said: "ETFs have never been used as a vehicle for regular saving, they have always tended to be for a lump sum investmen...

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