Tickr is coming soon to Seedrs

https://tickr.co.uk/post/does-impact-investing-mean-sacrificing-returns

One more fintech crowdfunding on seedrs.
At first glance seems like a roboadvisor or did I miss something?!

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Yeah it is and they have a gorgeous app

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Indeed. It does look good

A roboadviser that charges you 0.7%pa to buy an ETF (ETF costs not included).

Although Freetrade should look to add some “ethical” ETFs/Trusts as there is an increasing demand.

This is a very competitive space, unsure what Tickr’s unique offer is. But I did see this recently

Fountain is a hybrid service offering pre-made portfolios with add-on extra advisory services, see below for pricing.

Their pre-made portfolios have a annual fee of 0.36% excluding underlying fund fee. For context the cheapest robo-advisor is evestor at 0.35%. While Nutmeg’s fee is 0.75% which scales down to 0.35% for amounts over £100k.

Here is a screenshot of some ( all? ) of Fountain’s add-on services from the App Store

P.S. I have no idea how much value Fountain’s add-on services add. Also not affiliated with any of the above.

Am I missing something here? Fountain seem to offer ‘portfolios’ of one ETF? If I buy their ‘Adventurous’ portfolio I’ll be charged 0.36% to buy an easily accessible Vanguard ETF. Tickr looks like they mix up a combo of 12 ETFs (all easily accessible elsewhere) but at least they ‘manage’ (ahem - ‘rebalance’) them - so at least they have some work to do for the fee!!!

Is this a business model? Charge novice investors 0.36% for the pleasure of buying an ETF they could get for significantly less elsewhere, like, say, Freetrade?

What am I missing? Is this an education piece and users will migrate to Freetrade or ANother broker when they realise? Is this a land grab who’ll sell their client bank to a big broker within a year?

I’m confused

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I like tickr, the app is gorgeous and their ETFs aren’t available on Freetrade. But I really don’t want to pay fees.

Not something I will invest in because I don’t see anything original

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The entire tickr ETF list is only 12
Not all offered by Freetrade, agreed - but easily added
Some are also easily substituted
Nice app. Slightly pointless proposition.

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dozens_list

Same with Dozens
Despite the name they offer 15 ETFs
All easily traded elsewhere
Some on Freetrade - or a close approximation
I don’t get it
Again, nice app tho
Would I use it?
Probably not

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tickr may change the fee structure, though no details as to how

London Fintech Podcast: LFP127 – Impact & Ethical Investment in the Fintech Age w/Tom McGillycuddy CEO Tickr
https://londonfintechpodcast.com/lfp127-impact-ethical-investment-in-the-fintech-age-w-tom-mcgillycuddy-ceo-tickr/ [00:29:32]

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Hi everyone, Tom here! One of the co-founders of tickr :wave:

Thought I’d jump in here and firstly thank everyone for the kind feedback on the design of our app, and address some of the comments about our proposition.

Tickr is being designed for first time investors, using impact investing as the tool to bring them to invest because the themes are relatable and create engagement (vs traditional investments using confusing investment jargon). Almost all investment has collapsed into a simple idea of maximising your return. But what if you don’t want your investments to harm society and the world? What if you want to help the world and make a great return? We believe there HAS to be a way to make a good financial return (one that outperforms the market), that is not bad to society!

We hope to develop an investment proposition that truly engages millennial first time investors (our core target market). We believe offering single line stocks to first time investors is quite risky if it isn’t accompanied with sound advice, so we’ve been really glad to see Freetrade offering community meetups and educating their users!

Later this year we plan to take some of the existing ETFs mentioned and repurpose them and improve them, launching them as our own. We aim to offer them to our users in the app for free (yes free!), and they will sit outside of the app to be invested in by retail and institutional (my background) investors at a small cost. There is huge demand for cost effective, actively created, passively implemented, sustainable/impact ETFs, and we believe we are in a great position to fill this void! So, who knows - hopefully one day soon you will be able to buy low cost tickr ETFs via Freetrade!

This will not be a winner takes all market - we love what Freetrade are doing and many of our team are Freetrade users. Simply put, there are some huge incumbent service providers out there offering unappealing user experiences and we believe there is a huge opportunity to improve the experiences of all investors, whether they are passive/active or first-time/experienced investors.

P.S. we’ll be launching our own tickr community soon, and we hope to see some of you over there!

Thank you,

Tom

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Hi Tom!

Do you plan to migrate existing users to your own ETFs, or leave them with what they have and the legacy pricing?

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Hi Gaoler - yes we’d swap out the existing ones and put ours in there. Taking out the legacy ETFs and pricing altogether.
Thank you,
Tom

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Great! Nothing to put anyone off opening an account straight away then

Hey @TomMcGillycuddy could you confirm if you’re rebranding and selling existing ETF’s initially and then planning to offer your own ETF’s later on?

If launching your own ETF’s won’t this require huge amounts of seed capital, regulation etc?

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What are some of the shortcomings with the existing ETFs in the ESG space?

Sorry to be so horribly scathing, but my take on Tickr from the website is that their target audience are young tree hugging snowflake millennials who probably still live with Mum and Dad and wouldn’t know how to operate a washing machine, but are experts on the latest political correctness and fashion crimes. The same people are saving every penny for a house and/or also have piles of debt and probably too freaked to put into the markets if they wanted to or were able to. Ok, I exaggerate and there are lots of very ethnic orientated people out there, but really? Given that most people with money are middle aged to older people I’m struggling to see how this is a business that will succeed.

“Our portfolios are split into 4 themes addressing global issues” 2 of which are climate change and gender equality. Hmmmm.:roll_eyes:

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I went to see them pitch recently and there was at least one other clone company there doing roughly the same thing. I wasn’t going to invest (saving my cash for Money Dashboard) but FOMO has had me put in a small amount as I want to ride this Fintech bubble!

I don’t think you’re that sorry tbh :grimacing:

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Most ESG ETFs currently just take an existing index - like the MSCI ACWI - and re weight the holdings based on something like carbon emissions. This is a start, but it doesn’t take out any of the worst offenders, so investors are still investing in coal etc.

With impact investing, and the construction of ours ETFs, the starting point is different: which companies in the world are addressing a specific theme, like resource efficiency. We then screen these in, add in some other criteria around governance etc, and create the ETF with positive screening as a starting point.

Thanks,
Tom