Savings in ETFs have seen rapid growth globally, with an influx of 20,000 billion SEK last year alone. Despite this, there are only a few ETFs listed in Sweden, and no new fund has been listed on the Stockholm Stock Exchange in five years, according to Montrose CEO Alexander Boman.
Montrose is set to launch the Montrose Global Monthly Dividend ETF next week. This exchange-traded fund is designed to provide a 6% annual yield, equivalent to a monthly dividend of approximately 0.5%. “We know that many investors value continuous dividends and stability in their portfolios, especially if they want to generate cash flow without having to sell their assets,” says Montrose product manager Daniel Almer.
But the ambitious online broker is not stopping there. “We will soon launch another global ETF, this time with built-in leverage,” says Boman. The CEO hopes that this initiative will contribute to a broader upswing in ETFs in Sweden. “Given the strong global demand, it is high time that Swedish investors have more options tailored to their needs,” Boman adds.
The monthly dividend ETF has an estimated total fee of 0.44%, with 0.39% in ongoing fees and 0.05% in transaction fees. Since the ETF is listed and traded in Sweden, there are no costs for currency exchange. Additionally, no withholding tax is paid on dividends in an ISK or capital insurance. When you buy the ETF through Montrose, you do so without paying any brokerage fees.
This move by Montrose signals a significant development in the Swedish ETF market, providing investors with more accessible and diversified options to grow their portfolios. With the global economy evolving rapidly, having a range of ETFs tailored to different investment strategies is crucial for investors looking to navigate the financial markets effectively.
Stay tuned for the launch of the Montrose Global Monthly Dividend ETF and the upcoming leveraged ETF, as Montrose continues to innovate and expand its offerings to meet the changing needs of investors in Sweden and beyond.