Swedish fintech Lysa is preparing to enter the European ETF market

According to public records, the fintech company has registered the Lysa Global Equity UCITS ETF with the Swedish authorities. This would mark the first time the robo-advisor has acted as an ETF provider itself.

Lysa has been active in the German market with its robo-advisor since January 2023, having launched in Sweden in 2017. In addition to Germany, the fintech company also operates in Denmark and Finland.

According to its own figures, Lysa now serves more than 205,000 clients and manages approximately €5.5 billion. Assets under management have almost tripled since 2022. The provider’s main selling point is its very low fees.

Lysa Enters ETF Market With First In-House Fund Launch

Up to now, the company has pooled its investments through its own retail funds managed by its in-house fund company, Lysa Fonder AB, which in turn invest in low-cost ETFs from external providers. However, with its entry into the European ETF market and the development of an in-house toolkit, the fintech could take over part of this value creation itself in the future.

The planned ETF is therefore likely to be more than just an additional investment product. Rather, this move suggests that Lysa and co-founder Patrik Adamson are further developing their existing architecture. While previously a portion of the ongoing product fees flowed to ETF providers like BlackRock or Vanguard, a larger share of the fees could remain within their own ecosystem in the future.

This would mean the fintech company is following a trend that is increasingly observed in European asset management. More and more banks and asset managers are building their own ETF platforms and using them primarily as building blocks for their in-house asset management. The aim is to no longer pass on product fees to external issuers, but rather to gain greater control over the entire value chain.

Until now, this strategy has primarily been pursued by large institutions. Recently, companies such as DZ Bank, UniCredit, Oddo BHF Asset Management, and Fideuram have developed their own ETF solutions or corresponding platforms. Lysa now demonstrates that this model can also be attractive for significantly smaller market participants.

__

(Featured image by Markus Winkler via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in ETF STREAM. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.