Exchange-traded Funds (ETFs) are designed to track the performance of a specific index, commodity, bond, or basket of assets, and they offer investors a way to buy a diversified portfolio of assets in a single investment.
What ETFs does Lightyear offer?
Lightyear offers a diverse range of ETFs from some of the world’s largest fund managers. You can explore our full universe of ETFs right here, or within the Lightyear app. You’ll find plenty of data about the individual instruments we offer by clicking on a specific fund - this includes dividend metrics, analyst ratings, exchange information, and more.
How much does it cost to trade in ETFs?
We don't charge any execution fees for ETF orders (see our full pricing here). However, depending on the fund's issuer, there may be fees from their side, which is always best to clarify directly with the fund's manager. You can also review the Cost Disclosure Document and Key Information Document (KID) in the About section on the ETF page. We get the KIDs from our ETF data provider and do regular manual checks to make sure they’re up-to-date. At the same time, we review and update the Cost Disclosure Document if needed, based on info from the ETF manager.
Do you offer fractional ETFs?
At the moment, not all ETFs are available in fractions but we're working on making more available as soon as possible. If an instrument is traded fractionally, this will be shown on its instrument page with the “Fractional” label visible at the top.
Do you offer US-domiciled ETFs?
No, we don’t offer ETFs that are listed on a US exchange. This is because there are regulations which restrict US-domiciled ETFs from being offered to European customers. We are looking into the possibilities of making them available in the future.
However, we offer comparable alternative ETFs traded on UK/EU markets for many US ETFs that are traded in EUR and GBP. This means that there are local versions of ETFs in the Lightyear app, which are similar in terms of underlying assets to a counterpart ETF based in the United States. There are also ETFs available that are traded in USD, but these are not listed on a US exchange.
To see on what exchange an instrument is traded, go to the instrument tab in the app and scroll down to the About section.
How do ETF dividends work?
ETF dividends are cash payments distributed by ETFs to their shareholders. Not all ETFs pay dividends, and whether and when you receive them depends on the specific instrument. The ‘Fund highlights’ section of the relevant ETF within the Lightyear app displays whether and what kind of dividends an ETF offers.
Accumulating dividends
This means that the dividends received from the ETF are reinvested into the same instrument.
Distributing dividends
This means that the dividends received from the ETF are paid to your Lightyear balance. Lightyear does this for you once we receive the payment. There’s nothing you need to do, and you’ll be notified in the Activity when the payment has been credited to your account.
See also: