Today, investment platform Lightyear announces its expansion into exchange traded commodities (ETCs) with the launch of gold.
Adding ETCs to its existing suite of 3,500+ stocks, ETFs and MMFs, is another way for Lightyear’s retail and business customers across Europe to diversify portfolios. iShares Physical Gold (“PPFB”) seeks to track the day-to-day movement of the price of gold – minus fees – backed by gold bullions. The gold bullion is held as allocated gold bars with the custodian, JPMorgan.
Data shows the price of gold has risen in the past few years, but for longer term investors, the S&P 500 has been shown to outperform the physical asset in the long run. Price fluctuations in assets like gold behave differently to that of normal stocks or funds, so investing in commodities is often seen as another layer of diversification in an investment portfolio, instead of an either-or. The iShares Physical Gold (“PPFB”) has a Risk Indication of 4, on a scale of 1 (low) to 7 (high).
Lightyear launched its new business accounts in August, to help freelancers invest and earn interest on company money. At the same time, it launched BlackRock Money Market Funds for UK businesses, without the high fees or minimum investments typically associated with the instrument.
With interest rates at an all time high, Lightyear’s multi-currency business investment accounts, BlackRock Money Market Funds, and now this Gold ETC, help businesses make the most of their company funds, ensuring that excess corporate cash isn’t eaten up by inflation while sitting in bank current accounts.
Mihkel Aamer, CTO and co-founder at Lightyear, said, “Adding exchange traded commodities to our offering for businesses across Europe is a huge step for us.
“Our business customers can now invest in gold, on top of the existing 3,500+ stocks, ETFs and MMFs on the platform. We’re prioritising products that enable customers to manage and diversify their portfolios amidst rising inflation.
“With our interest rate product that tracks the Central Bank Rate and our BlackRock Money Market Funds, the addition of gold into our offering boosts the many ways that businesses can put their money to work in a higher inflation environment.”
Lightyear, headquartered in London and founded by early Wise alumni Martin Sokk and Mihkel Aamer, was born in September 2021 from personal frustrations with investing in Europe. Hidden fees, confusing user experiences and lack of access to international markets was very much the norm. Since launching, Lightyear has expanded its product set with new customer requested features, all geared towards unlocking the European market and making investing easier.
Bringing multi-currency investment accounts to the market for businesses across Europe, Lightyear has a deep product and feature set for savvy entrepreneurs.
From BlackRock money market funds to ETFs and stocks from major US and EU exchanges, the platform has been expanding its offering with new launches every few weeks. The latest addition of commodities allows business investors to further diversify their portfolios.