Co-founder of Affari Miei
February 9, 2024
Have you heard of the ETF UniCredit and would you like to know more? Today in this guide we will see exactly what are ETFswhat an offer ETF proposes UniCredit and above all we will analyze theirs characteristics eh coststo better understand whether it is an interesting and convenient investment for you.
Enjoy the reading!
This article talks about:
Before we begin… What are ETFs?
First of all let’s get started with a brief introduction, or with a little review: ETFs are passively managed funds, listed on the stock exchange, which replicate quite faithfully a stock or bond index, which we usually call benchmark.
These are passively managed fundsthat is to say there is no manager which is responsible for making decisions to pursue an objective or actually managing your assets, but rather the fund simply replicates the performance of the index.
It is precisely for this reason that the return of an ETF often does not differ too much from that of the market index it replicates.
Furthermore, ETFs have interesting characteristics, and above all… advantages not indifferent:
Costs content management;
Transparency in investment; Remarkable liquid assets;
High diversification.
UniCredit ETFs
In 2012 UniCredit found an answer to the crisis and to the new needs that private customers were expressing with ETFs.
The bank has in fact launched the new management of UniCredit Green walletswhich he created in collaboration with iShares.
This management features 10 replicants signed by iShares, and the client can choose the level of capital guarantee (between 80% and 90%) based on their needs and objectives.
How does the investment happen?
After identifying the level of risk, the composition of the portfolio will be defined, and the specialists will manage the dynamic mine allocation based on market trends.
Furthermore, in 2019 the bank also launched the first ones ETF on European stocks that combine multifactorial strategies with ESG criteria.
The launch took place through the subsidiary Structured Invest S.A.
I fondi replicano l’indice EURO iSTOXX ESG-X & Ex Nuclear Power Multi Factor Index e l’indice EURO STOXX ESG-X & Ex Nuclear Power Minimum Variance Unconstrained Index.
UniCredit Idea
To invest in ETFs through UniCredit another solution is portfolio management specialized in ETFs.
This is a solution designed exclusively for customers of UniCredit private banking.
It is complete management, since you will be able to choose different investment lines that are diversified by risk profile:
The balanced management line; The dynamic management line; The prudent management line.
The assets must be fully invested in one of the lines, so you will have to choose the one best suited to you.
You will subsequently be able to change the investment line, but only by completely transferring the assets to the chosen line, always respecting your risk profile.
As far as management is concerned, however, at the beginning there is a moment of sharing needs and objectives, then subsequently UniCredit will be given the power to operate on the management of subscribed portfolios. This is full delegated management, also known as full mandate.
This is a solution suitable for you if you are looking for a strategy that captures market opportunities and if you are looking for returns.
Bond ETFs
Furthermore, in 2015 UniCredit entered the business with two ETFs on European convertible bonds.
The two ETFs proposed by Unicredit are:
UC Refinitiv European Convertible Bond UCITS ETF (dist);
UC Refinitiv European Convertible Bond UCITS ETF (acc).
These are bond ETFs that have management costs of 0.75%.
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Unicredit ETF: the costs of investing
Let’s now see, after having seen what the offers on ETFs proposed by UniCredit are, what they are costs to invest and how an investment behaves in this sense.
Usually the commission charged to purchase ETFs over the counter it is equal to 1%, i.e. if for example you decide to invest 10,000 euros, then you will have to take 100 euros in commissions into account.
Then of course you will have to take into account the management cost of each ETF that you choose, so every year you will also have to count these expenses.
Plus, since it’s a bank, you’ll need to use a securities account to be able to operate, and to leave the burden of safeguarding and administering the financial instruments you choose for your investment to the bank.
The fixed expenses for management and administration for Italian ETFs it is 58 euros per semester, with an annual outlay of 117 euros.
The trading commissions then these are, as far as the Italian market:
Over the counter: 1.10% Through telephone banking: 0.90%; Via internet: 0.30%.
For the foreign market Instead:
Over the counter: 1.30% Through telephone banking: 1.15%; Via internet: 0.80%.
Is it worth buying ETFs with UniCredit?
We have truly reached the end of our guide, and all we have to do is try to understand now whether it is better to buy ETFs with the bank oppure no.
We have seen that the expenses not management fees they are quite high, since we have to take into account both the fixed expenses for the securities account, the actual management fees of each ETF, and also the various expenses for each operation performed.
Are you really sure that this is a convenient solution?
Without a doubt theUniCredit offer is very broad, and in addition to the ETFs to choose from there is also the possibility of focusing on portfolio management which takes care of the choice, management and strategy of your investment for you. This is undoubtedly an interesting and also convenient solution if we want, since if you don’t want to deal with investments yourself but prefer to delegate, you can do it easily.
In general the banks they are increasingly turning towards investment proposals that include ETFs, precisely because they have realized that customers and investors were and still are particularly interested in an investment of this type.
And indeed these passively managed funds are excellent tools for an investment, especially if thought from a long-term perspective.
I also personally prefer these tools, and I believe that there are other solutions for purchasing them, such as online platforms that are able to amortize the costs.
I’m not telling you that you shouldn’t rely on the bank if you want to invest in ETFsbut I am pointing out to you that there are alternatives, and that perhaps you could make a comparison and then understand which is the most correct, safe and convenient method for you to make your investment.
If you are interested in investing in ETFs you can learn more about the topic here. You can also find out more about Unicredit shares or on Unicredit bonds.
I hope this guide has been useful to you, and I invite you to think before making your investment decision.
Furthermore, I also leave you some guides here if you are interested in learning more about the world of investments in general:
Happy continuation!
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