If you’re waiting for InvestEngine’s managed portfolios to return, you don’t need to sit on the sidelines and miss out on potential returns.
InvestEngine’s DIY portfolios give you access to over 800 exchange-traded funds (ETFs). These range from diverse all-world funds to focused regional markets or specific industries. We also offer Money Market Funds, which aim to track the Bank of England’s SONIA rate and aim to be very low risk.
And the best thing about DIY portfolios? They’re entirely commission-free and we don’t charge a platform fee. You only pay the small underlying ETF fees.
Couple low fees with quality of life tools like automated Savings Plans and easy maintenance with One-Click Rebalancing, and it’s easy for anyone to build a temporary (or perhaps not) home for your investments.
Why a DIY portfolio can be a smart alternative
A DIY portfolio lets you choose your own mix of ETFs. You’re in control, and it’s never been easier to manage your investments yourself. With InvestEngine’s DIY portfolios, you can:
- Pick from globally diversified ETFs like the FTSE All-World UCITS ETF (FWRG), which spreads your money across thousands of companies in developed and emerging markets.
- Focus on popular regions like the S&P 500 (US large caps) or the Nasdaq 100 (US tech giants) if you want a more targeted portfolio.
- Use Money Market ETFs to park cash in relatively low-risk, short-term instruments while still earning interest-like returns.
Because ETFs trade like shares, you can switch between these strategies any time. Also, with no commission fees, there’s no cost to moving your money as your plans change over time.
Before we get into some options, it’s important to note that none of this is financial advice and, if you’re at all unsure about what to do with your money, you might want to speak to a financial advisor before getting started.
Global diversification: the “all-weather” option
ETFs tend to be diversified by default. They’re often made up of hundreds, sometimes thousands, of individual assets, meaning you can get broad exposure to markets with one addition to your portfolio.
An all-world fund, for example, covers the major markets in a single trade. For some investors looking to park their money while they wait for a Managed portfolio, this could be an option.
With an all-world or global fund, you can get:
- Broad exposure to thousands of companies across North America, Europe, Asia, and emerging economies
- A balance between faster-growing regions and more stable markets
- Simplicity. You can “set and forget” while still being globally diversified
This can be a convenient option for investors who don’t want to back any particular regions, businesses or industries more than others. Casting a wide net is a valid approach for many.
Regional focus: US and European market leaders
If you prefer to target a specific market or two, major areas like the US or Europe offer indices that cover those specific regions.
Here are some examples. Follow the links for ETFs that fit the bill:
- The S&P 500: 500 of the largest, most successful US companies across all sectors.
- The Nasdaq 100: Home to tech leaders like Apple, Microsoft, and Tesla.
- The FTSE 100: The UK’s flagship stock market, made up of 100 of the biggest companies in the area.
- Gold ETFs: You may want to invest in gold as an alternative to a major market.
All of these major markets are easily accessible via low-cost ETFs and can be combined with other funds for added portfolio balance.
Capital at risk.
A lower risk approach: Money Market ETFs
If you want to minimise risk while you wait, Money Market ETFs are designed to be a more steady, less volatile option.
These ETFs invest in short-term government and corporate debt and attempt to track the Bank of England’s SONIA rate – a benchmark of interest rates from the major UK banks.
Money Market ETFs aren’t for chasing high returns as that’s not their aim – many investors use them to preserve capital while delivering a yield similar to high-interest savings accounts, with the added benefit of daily liquidity.
The current SONIA rate is just under 4%.
Naturally, for a lot of people, it might be favourable to employ a mix of all these strategies for a balanced approach to investing.
Capital at risk.
How to set it up
Getting started with a DIY portfolio is easy. Just head to InvestEngine, click ‘Get started’ and follow the steps.
- Open or use an existing ISA, SIPP, GIA, or Business Account.
- Choose your ETFs – global, regional, money market or a mixture.
- Use Savings Plans to set up straightforward, fully automated regular investing from just £20 a week.
Of course, you will be able to very easily switch your portfolio once Managed portfolios return.
Important information
Capital at risk. T&Cs apply. The value of your portfolio with InvestEngine can go down as well as up. You may get back less than you invest. Past performance is not a reliable indicator of future results.
ETF costs apply. This communication is for general information only and does not constitute personal advice. If in doubt you may wish to consult a professional adviser for guidance.
Tax treatment depends on your personal circumstances and may change in future.