VanEck, the US-based pioneer of exchange-traded funds (ETFs), has launched VanEck Direct, a new app that enables the company to sell investment products directly to retail investors—bypassing banks and brokers. This marks a significant step in opening its own direct distribution channel.
The app, currently available exclusively in the Netherlands, offers five standard portfolios tailored to different risk profiles. VanEck aims to attract individuals hesitant to invest their excess savings.
“We’re targeting non-investing investors. Our app provides an accessible solution with minimal decision-making stress.”
Martijn Rozemuller, VanEck Europe
“We’re targeting non-investing investors. Our app provides an accessible solution with minimal decision-making stress,” said Martijn Rozemuller, CEO of VanEck Europe, in a conversation with Investment Officer.
To complement, not replace
Rozemuller emphasised that VanEck Direct is designed to complement, not replace, existing distribution channels through brokers and banks. “A proprietary distribution channel isn’t a priority for us right now. The main driver behind this initiative is that we’ve observed existing channels don’t reach or engage everyone. Banks and brokers cater well to those who find investing relatively easy; there’s no value for us to add there,” he explained.
VanEck is not the first to experiment with selling funds directly to retail clients in the Dutch market. Goldman Sachs Asset Management offers a similar service through its Dutch platform Fitvermogen.nl. Robeco and other fund managers also use their online channels to market proprietary products, often targeting retirement savings.
Loyal following
VanEck has built a loyal following among Dutch ETF investors, which specialists believe will react positively to the app. However, many retail investors may still prefer banks or brokers for their broader investment options.
The app is unlikely to significantly boost VanEck’s assets under management, which stood at approximately 118.6 billion dollars globally at the end of last year, including around 14 billion dollars in Europe. Rozemuller estimated that between 1.5 and 2.5 billion dollars of this originates from the Netherlands. The firm has seen significant growth in the Dutch market in recent years, partly due to its active engagement with ETF investors.
“Any initiative that encourages a broader group of people to start investing is a welcome addition.”
Jean-Paul van Oudheusden, independent investment specialist
“Any initiative that encourages a broader group of people to start investing is a welcome addition,” said Jean-Paul van Oudheusden, an independent investment specialist. “While I doubt the app will generate 10 percent of their AUM, it’s certainly a valuable complement to what they’ve already built.”
“It’s unique for an ETF provider like VanEck to create a retail broker-like structure. But it makes sense because it eliminates certain costs for retail clients,” added Jeroen Scherbeijn, an expert in investment apps. He noted parallels with CFD providers like IG Markets and Plus500, where clients trade products within proprietary apps.
Savings market potential
VanEck sees potential in the vast Dutch savings market. By the end of September, Dutch households held 480 billion euros in savings, while only 185 billion euros was invested in securities, according to the Dutch central bank.
Rozemuller attributed this imbalance to a psychological barrier: “Many people feel they want to invest but struggle to take that first step.”
“Education alone isn’t enough,” he added. “They feel overwhelmed by the broad offerings at banks and brokers. We provide a convenience solution where they don’t have to make active choices themselves.”
Limited options for beginners
Like in most other European countries, investment options for beginner investors in the Netherlands remain limited. International players like Vanguard do not offer apps locally, and platforms from BlackRock and DWS target different demographics. Alternatives like Degiro, Saxo, and Etoro are often more complex and suited to experienced investors.
Major domestic banks such as ING, Rabobank, and ABN Amro provide simpler access to investing but with a narrower ETF selection and higher costs.
A Dutch pilot
Launching VanEck Direct in the Netherlands was a deliberate choice. “The Netherlands is a small, manageable market that works well as a pilot,” said Rozemuller. A 2022 report from the Dutch financial regulator AFM estimated that around three million Dutch citizens have the financial means to invest but currently refrain from doing so.
Some major European markets, such as Germany and the United Kingdom, already have a more extensive range of ETF investment platforms. In contrast, financial institutions dominate the more closed markets of France and Belgium.
VanEck’s success with this initiative could provide a blueprint for expansion into other European markets, offering insights into how to engage retail investors who might otherwise avoid investing.