Retail traders are increasingly looking for a safe way to store their capital in a world of high-interest rates and very slow curbing of record-high inflation. The zero-commission investment platform, BUX has decided to meet this demand and offer instruments that were previously reserved for institutional traders only.

BUX Offers Corporate Bonds in the Form of ETFs

BUX has added iBonds exchange-traded funds (ETFs) to its portfolio as part of its collaboration with the investment market giant, BlackRock. These combine the key characteristics of traditional bonds and ETFs, providing retail investors across Europe with cost-effective access to the corporate bond market.

Four iShares iBonds from BlackRock have been added to the offer, maturing in December 2026 and December 2028, each available in both dollar and euro versions. The specifications of the four new instruments are presented in the table below:

As BUX claims, corporate bonds were previously reserved only for institutional investors. Now, iBonds allow retail investors to access corporate bonds within an ETF framework, which mirrors the behavior of typical bonds. It ensures the transparency and liquidity of ETFs and the cost-efficiency of bonds.

"We are delighted to bring iBond ETFs to our customers across Europe," commented Yorick Naeff, the CEO of BUX. "With iBond ETFs, investors can benefit from the diversification and liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term associated with ETFs, while also enjoying the predictability of a set expiry, and benefits of income, much like a bond."

Happy to announce that as of today, everyone will get access to a new groundbreaking product: iBonds. It’s a new product from @BlackRock. It’s an ETF, but with a fixed maturity date. #investing #new

Investing involves risk. You can lose your investmenthttps://t.co/gUrmwRVgZR

— BUX (@bux) August 16, 2023

In May, the BUX platform announced a name change from BUX Zero. According to Naeff, dropping 'Zero' from the name shows the company's commitment to building its flagship app and expanding its current services with new instruments.

Traders Move to Passive Investments

New instruments for savers appeared a few months after BUX announced that it would offer an ETF savings plan in Europe, which is in collaboration with BlackRock. According to a survey conducted by BUX, Europeans are afraid to invest independently due to a lack of proper knowledge, and the savings plan is designed to change that. The latest bond offer is a natural extension of this.

The company allows its users to create portfolios using iShares ETF funds, which provide broad exposure to bonds and stocks in global markets. The BUX savings plan can be customized, choosing from various iShares ETF funds, including equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term, bonds, themes, sectors, factors, and balanced ETF funds.

"When investing is made cost-efficient and accessible, millions of investors turn to iShares ETFs as tools to build investment portfolios and achieve financial well-being. We are delighted to be working with BUX; this partnership creates an efficient way for investors across Europe to access the benefits of ETFs and invest in global markets in a straightforward, accessible, and cost-efficient format," Christian Bimueller, the Head of Digital Distribution Continental Europe at BlackRock, commented.

Filip Kaczmarzyk, a Member of the XTB Management Board, confirmed traders' willingness to seek passive investments a few months ago. In an interview with Finance Magnates, he admitted that the firm's clients were more likely to go for stocks and ETFs instead of traditional CFDs.

"In 2022, as many as 44% of XTB clients in Poland invested in stocks and ETFs. In Romania, this result was even higher, reaching a staggering 55%. Therefore, we can expect that this trend will continue in the coming months, and even years," Kaczmarzyk explained.