Covestor, the online investment subsidiary of Interactive Brokers Group, has launched 10 smart beta portfolios designed to provide broad market exposure with a low USD5,000 investment minimum.
“These are unique products that combine the advantages of actively-managed mutual fund stock-selection techniques and the low cost of exchange traded funds,” says Thomas Peterffy, chairman and CEO of Interactive Brokers Group.
The 10 portfolios have low management fees of 0.08 per cent, industry-low brokerage fees ranging between 0.01 per cent and 0.15 per cent depending on investment amount, and investment minimums of USD5,000.
The initial Covestor smart beta products include broad-based equity, value, growth, quality and high-dividend portfolios.
“Covestor Smart Beta portfolios find the sweet spot between ETFs and mutual funds,” says Sanjoy Ghosh, Covestor’s chief investment officer. “They are designed to provide broad market exposure and potentially higher returns than passively-managed index trackers.”