Providers eye fractional ETF dealing services to meet pension and robo-advice demand

Investment services providers are beginning to offer fractional share dealing on exchange-traded funds to meet investor demand for lower entry levels on the vehicles.

Currently, most platforms only allow ETFs to be traded in whole shares, which can often be £100 per share or more, making it harder for retail investors to utilise these vehicles if they are looking to invest smaller amounts on a regular basis. Adam Laird, passive investment manager at Hargreaves Lansdown, said he has identified a particular need among pension investors, who now have more investment flexibility following the introduction of pension freedoms last year. Morningstar: High yield ETFs could act as 'safety valve' in stressed markets He said: "ETFs have never been used as...