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LLOYDS BANK PARTNERS WITH BLACKROCK TO LAUNCH ETF INVESTMENT QUICKLIST

 * Lloyds Bank has launched a list of 16 ETFs through BlackRock 
 * It comes after the bank launched its Ready-Made Investments service 
 * Banks are looking to build business in the DIY investment space - we look at
   why

By Helen Kirrane

Updated: 10:28, 28 September 2023



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Lloyds Bank is attempting to lure customers to the DIY investment space with the
launch of its ETF Quicklist.

The bank has partnered with BlackRock to put together a list of 16 iShares ETFs
for investors.

It follows Monzo launching its DIY service, Monzo Investments, also in
partnership with BlackRock, in a sign banks are looking to build business in
this area. 


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Lloyds Bank has launched a limited list of ETFs to make it easier for investors
to choose from the many thousands on offer

Lloyds launched a ready made investments service in July. Its new ETF Quicklist
is billed as a 'simple and cost-effective way to invest'. 

There is a £20 half yearly admin fee and if you do not have a regular investment
plan alongside an £11 dealing fee. 

As a result, it is only cost effective if you have a larger pot to invest or are
dealing in large amounts. 


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HOW THIS IS MONEY CAN HELP

 * How to choose the best (and cheapest) DIY investing Isa - and our pick of the
   platforms

Lloyds' ready-made portfolios through its investment service have a £3 monthly
account fee with annual fund charges of 0.21 per cent to 0.23 per cent,
depending on which of the three portfolios is held - Cautious Managed Growth
Fund 2, Balanced Managed Growth Fund 4 or Progressive Managed Growth Fund 6.

With the ETF Quicklist, customers can choose those they want through a share
dealing account or an Isa, accessible from their banking app or online.

The ETF list is split into four categories - themes, around the world, fixed
income, and trending now, which includes ETFs ranging from UK property to
healthcare.

Manuel Pardavila-Gonzalez, managing director of Lloyds Bank Investments, said:
'Investing should be hassle-free, affordable and accessible to all customers and
our new ETF Quicklist will provide an easy way to get started on their
investment journey.'


WHAT ARE ETFS? 

Exchange-traded funds or ETFs are shares listed on stock exchanges and therefore
can be bought and sold throughout the trading day.

Traditionally they clone a market index, and are passively and therefore cheaply
run like a tracker fund, but there are many variations across many sectors so
you need to do your research on them as with any investment.




'ETFs are a great option for people who want to build and manage their own
portfolio. They're simple to understand and offer investors a low-cost,
diversified set of holdings.'

Banks have been trying to claw investors away from DIY investing platforms, but
this isn't a new phenomenon.

Henry Tapper, chief executive of pension comparison service AgeWage, says:
'Lloyds Bank is perhaps the first and the biggest bank to get involved in this,
with their purchase of Embark Group in 2022, while Monzo is a high profile
example of a digital bank looking to diversify in the retail investor space.

'Part of the reason for these moves is due to banks understanding that the
income they receive from traditional banking activities is limited and dependent
on external factors, for example interest rates.

'So this move makes good commercial sense.'

Justin Modray, boss of Candid Financial Advice, agrees that banks are launching
these services to boost revenue if loyal customers invest surplus savings,
especially if it's as simple as a few clicks.

But they are also looking ahead to the next generation of investors. In the case
of the challenger banks, they have a group of customers who have a natural
affinity for digital services to tap into.

Initial demand for Monzo Investments was so strong that the waiting list for the
service grew to 200,000 in two days.   


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Lloyds Bank's ETF list is split into four categories - Themes, Around the world,
Fixed income and Trending now

Mike Barrett, commercial director of financial services consultant the Lang Cat,
says: 'Services like these are targeting a different customer to the existing
investment platforms, with this clearly being first-time investors.

'If you are an experienced investor or are already investing elsewhere, I
suspect you might find them too limited. Monzo most notably only has three
Blackrock funds to choose from.

'But for those starting out, for whom choosing funds from a list of thousands on
a platform is too much, they are a great option.'

There are of course many retail platforms where you can buy BlackRock funds, and
Modray warns: 'Banks have traditionally been a poor option when buying
investment funds, with choice often limited and costs high.

He says: 'Lloyds' £3 monthly account fee with it equates to 0.36 per cent on
£10,000, so could prove extremely expensive on smaller investment pots but
become progressively good value on larger.'

'Comparative investment platforms are less pricey. For example, Vanguard, which
offers a wide range of low-cost index tracking finds, has a much lower 0.15 per
cent annual account charge.'

AJ Bell has a £9.95 dealing charge for ETFs and a 0.25 annual account charge. 

BlackRock says it will review the ETF Quicklist at least each calendar quarter.


COMPARE THE BEST DIY INVESTING PLATFORMS AND STOCKS & SHARES ISAS

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Investing online is simple, cheap and can be done from your computer, tablet or
phone at a time and place that suits you.

When it comes to choosing a DIY investing platform, stocks & shares Isa or a
general investing account, the range of options might seem overwhelming. 

Every provider has a slightly different offering, charging more or less for
trading or holding shares and giving access to a different range of stocks,
funds and investment trusts. 

When weighing up the right one for you, it's important to to look at the service
that it offers, along with administration charges and dealing fees, plus any
other extra costs.

To help you compare the best investment accounts, we've crunched the facts and
pulled together a comprehensive guide to choosing the best and cheapest
investing account for you. 

We highlight the main players in the table below but would advise doing your own
research and considering the points in our full guide linked here.

>> This is Money's full guide to the best investing platforms and Isas 

Platforms featured below are independently selected by This is Money’s
specialist journalists. If you open an account using links which have an
asterisk, This is Money will earn an affiliate commission. We do not allow this
to affect our editorial independence. 

DIY INVESTING PLATFORMS AND STOCKS & SHARES ISAS  Admin charge Charges notes
Fund dealing Standard share, trust, ETF dealing Regular investing Dividend
reinvestment AJ Bell*  0.25%  Max £3.50 per month for shares, trusts, ETFs. 
£1.50 £9.95 £1.50 £1.50 per deal  More details Bestinvest* 0.40% (0.2% for ready
made portfolios) Account fee cut to 0.2% for ready made investments Free £4.95
Free for funds  Free for income funds More details Charles Stanley Direct 0.35% 
No platform fee on shares if a trade in that month and annual max of £240 Free
£11.50 n/a n/a More details Fidelity* 0.35% on funds £7.50 per month up to
£25,000 or 0.35% with regular savings plan. Max £45 per year for shares, 
trusts,  ETFs Free £7.50 Free funds £1.50 shares, trusts ETFs £1.50 More details
Hargreaves Lansdown* 0.45% Capped at £45 for shares, trusts, ETFs Free £11.95
£1.50 1% (£1 min, £10 max) More details Interactive Investor*  £4.99 per month
under £50k, £11.99 above, £10 extra for Sipp £3.99 per month back in free
trading credit (does not apply to £4.99 plan) £3.99 £3.99 Free £0.99 More
details iWeb £100 one-off (no fee until end of 2023) £5 £5 n/a 2%, max £5 More
details  Accounts that have some limits but attractive offers  Etoro*  No Isa or
SippFree Investment account offers stocks and ETFs. Beware high risk CFDs in
trading accountNot available Free n/a n/a More details  Freetrade* No investment
fundsFree for Basic account,  £4.99 per month for Standard with Isa £9.99 for
PlusFreetrade Plus with more investments and Sipp is £9.99/month inc. Isa feeNo
funds Free n/a n/a More details Vanguard  Only Vanguard's own products0.15% Only
Vanguard fundsFree Free only Vanguard ETFs Free n/a More details  (Source:
ThisisMoney.co.uk Sept 2023. Admin % charge may be levied monthly or quarterly

 



DIY INVESTING PLATFORMS
Stocks & shares Isa

Stocks & shares Isa
Easy investing
Capital at risk. Isa rules & T&Cs apply.
Investment ideas

Free fund dealing
Free fund dealing
0.45% account fee capped for shares
Flat-fee investing

No fees
£9.99 monthly fee
One free £5.99 trade per month
Social investing

Social investing
Share investing
30+ million global community
Model portfolios

Investment account
Free fund dealing
Free financial coaching
Affiliate links: If you take out a product This is Money may earn a commission.
This does not affect our editorial independence.
> Compare the best investing platform for you



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LLOYDS BANK PARTNERS WITH BLACKROCK TO LAUNCH ETF INVESTMENT QUICKLIST

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earn a small commission. That helps us fund This Is Money, and keep it free to
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   student loan roulette decision
 * Car firms will still be forced to sell more electric vehicles every year
   despite petrol and diesel ban delay
 * What can 80s TV star Timmy Mallett teach you about your pension? Enlisted the
   support of Mallett's Mallet and Pinky Punky in a special reboot of his old
   gameshows
 * How can you tell if a share is good value? Five tips to work out if that
   company's stock is a winner or a dud
 * Five major mistakes you must avoid when buying a second-hand car - or it
   could cost you THOUSANDS
 * Pound sinks as inflation fall stuns City Bank of England interest rate
   decision now on a knife edge 
 * What inflation falling means for you CPI drops to 6.7% - where will it end
   2023?
 *  Wilko heirs must do right by their workforce ALEX BRUMMER 
 * Average house price inched up 0.6% in the past year, ONS figures show
 * Monzo attracts 200,000 sign-ups to investment platform waiting list in just
   two days
 * 'Sandwich generation' of 35 to 50-year-olds are footing the bill for those
   who don't work Says Bank of England's former chief economist
 * Which car makers have said they won't be selling petrol and diesel models by
   2030?
 * Best inflation-fighting savings rates: Savers STILL can't beat CPI of 6.7%
   but are getting close Here's where to find the best deals 
 * How to bring cracked crockery back to life - and why you should NEVER use
   super glue
 * Dry cleaner shrank my jumper - then went bust. How do I get a refund? DEAN
   DUNHAM 
 * Meet the feisty great grandmother who's driving fraud out of her Wiltshire
   market town Sandie Webb, 70, (pictured), founded Chippenham Community Hub in
   2021
 * Homeowners are facing a Christmas mortgage crisis As they come off their
   current fixed-rate deals 
 * Over-70s drivers worst hit by insurance price hikes... even though they make
   fewer claims Drivers over the age of 70 are being targeted by insurance firms
 * VW revamps its best-selling car How much the new Tiguan will cost - and what
   buyers will get 
 * Here's how new pension changes could give young workers a £120k boost The age
   limit to be auto-enrolled will be cut to 18 from 22
 * Home insurance premiums rise 10% in a year to £329 Are prices set to go even
   higher? 
 * How good is the 2023 European Car of the Year? We test the new £35,000 Jeep
   Avenger EV on UK roads 

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