Does True Wealth also use fractional shares?
First of all, fractional shares can be used to acquire a portion of equities, ETFs or index funds. This can facilitate access to the financial market, especially for investors with a small investment amount.
Since, as required by law, the pension assets of the third pillar are also held in central custody at a pension foundation, it is possible to trade the securities in bundles on the stock exchange and then allocate them to the individual insured persons (this saves costs, for more information see Pooling & Netting). As a result, we can now also allocate fractionals of ETFs or index funds to an individual client.
For our clients, this has the advantage that a high degree of portfolio diversification can be achieved even with a small investment amount. In addition, this enables us to waive a minimum investment amount for our clients.
Unfortunately, fractional shares cannot be used in the management of free assets at present, as a separate securities account is opened for each client.
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