ETFmatic Nextbank Madrid (June 2014)


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We help replicate market returns instead of charging huge fees

What are your options if you want to get reasonable returns on your long term savings? A checking or savings account that can't keep up with inflation? Online stock brokers with a dazzling number of instruments that require both time and expertise to tackle? Or whatever mutual funds your bank decides to push, even though management fees and kick-backs will eat up most of the returns?

As many studies show, typical mutual fund underperforms its relevant benchmark index by approximately the amount of its fees levied and expenses incurred. And although the annual difference between the market return (for example, S&P 500) and that of the typical mutual fund may appear minor, the difference compounds over time and results in significant gaps between market returns and actual accumulation in retirement accounts:

Source: The Tyranny of Compounding Fees: Are Mutual Funds Bleeding Retirement Accounts Dry?

ETFmatic offers a disciplined approach to savings, where you can set specific goals and contribute to them on a regular basis. These goals are built on top of low cost index portfolios to make it easier for you to achieve them, and our service maintains the right diversification by continuously rebalancing your portfolio through your contributions, minimising tax consequences and maintaining your prefered risk exposure. And because our commissions are really low, your returns compound faster over the years.

We enable busy people to easily configure their investment cruise-control

With the ETFmatic app for Android and iPad/iPhone our customers can efficiently:
Set goals for their savings and contribute regularly, preferably in an automated way, to make it a no-effort habit
Diversify their investments into low cost index funds or ETFs with low maintenance fees
Ensure that the closer they are to using their savings, the less volatility they will have in their portfolio
Easily manage their accounts from at any point and from any location
And most importantly, rest assured that their assets are kept safe under the custody of one of the most trusted banks in the world

Nobel Laureates such as Markowitz and investors like Buffet, back our approach

We have developed a propietary algorithm that enables our customers to simply:
Define the asset classes and investment instruments that provide best balance between low cost, high market coverage and low tracking error
Create template portfolios matched to various combinations of risk tolerance and duration of investment objectives through Modern Portfolio Theory and Asset-Liability Management techniques
Manage the order of your investment portfolio securing them in your Custodian Bank
Understand your risk preferences and investment objectives to tailor one of the time diversified template portfolios to your specific need
Help you monitor and rebalance your portfolio to stay on track

Published in: Business, Economy & Finance
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ETFmatic Nextbank Madrid (June 2014)

  1. 1. Are you investing in ETFs?
  2. 2. If you like spending 6-8 hours per week working on investments, do it. If you don't, then dollar-cost average into index funds. This accomplishes diversification across assets and time. – Warren Buffett Passive Investment Strategies
  3. 3. Costs of Stock Picking
  4. 4. Costs of Active Investment
  5. 5. Costs of Mutual Funds
  6. 6. A Dow Jones Ind. Avg. ETF
  7. 7. Costs of Timing the Market
  8. 8. Fun with Spreadsheets
  9. 9. Costs of Small Print
  10. 10. Recipe for Sunday afternoon?
  11. 11. We’ve got an app for that!
  12. 12. It finds the best ETFs in the market
  13. 13. To build the portfolio YOU need
  14. 14. Adapting it to YOUR changing needs
  15. 15. To help YOU achieve YOUR goals
  16. 16. Demo
  17. 17. High Street Banks
  18. 18. Meanwhile in the US
  19. 19. Management Team @luisriverag CEO @johan_hellman COO @t_carnell CTO
  20. 20. Advisory Board Bernard Dumas Finance Professor at INSEAD Juan A. Villalobos Flashiz, Business Dev. Former CMO at ING Spain David M. Lecea Bain & Co, Financial Services Principal Francisco Botella CFO at Fox Spain Cristobal Alonso Telenor Denmark COO