Indexa Capital: Analysis 2021
Robo-Advisor with Index Investment Funds and Index Pension Plans
Indexa Capital was the pioneer of automated managers in Spain in offering a Full-Service Robo-Advisor and has also managed to become the most popular, not only by volume of managed capital but also by number of clients. This success is not due to luck but to the good work of a great group of professionals. If you want to know what Indexa Capital is, what are the secrets of its success, what products they offer, what are their advantages and disadvantages, commissions and the profitability they have had until 2021, keep reading this article on our blog and discover if this Robo-Advisor is the best for you in this 2021.
Index of contents
1.-What is Index Capital?
2.- Is Indexa Capital safe?
3.-What products and services does Indexa Capital offer?
4.- Index fund portfolios:
4.1.- Main characteristics
4.2.- Investment strategy
5.- Indexed pension plans and EPSV
5.1.- Main characteristics
5.2.- Investment strategy
6.- Advantages and disadvantages
7.- How to invest through Indexa Capital?
8.- Financial Explorer Valuation
Indexa Capital is a Fintech with headquarters in Madrid created in 2015 as the first automated investment manager (or commonly called Robo-Advisor) to offer a discretionary and individualized management service. Indexa Capital is not a bank, nor is it a broker, but an online platform that allows you to invest in an automated, simple and diversified way in index funds (investment funds that replicate an index and have very low commissions)._cc781905-5cde-3194- bb3b-136bad5cf58d_
Indexa Capital currently manages more than 883 million euros and has more than 36,000 clients, which has led it to become the leading Robo-Advisor in Spain and to obtain numerous awards and recommendations:
The discretionary and individualized investment management service consists of completely delegating the management of your investment portfolio to Robo-Advisor. To do this, at Indexa Capital you must answer a series of questions with which its algorithms will determine your risk profile, that is, what is your risk tolerance or aversion. Based on this risk profile, Indexa Capital offers you a diversified portfolio appropriate to your risk profile and personal characteristics. Delegated management greatly simplifies the investment process, leaving your money in the best hands.
If until now you had not heard of Indexa Capital, this is surely one of the first questions that comes to mind.
Indexa Capital is authorized and supervised as a securities agency by theNational Stock Market Commission(No. 257), a public entity subscribed to the Ministry of Economy that ensures the protection of investors in Spain. Indexa Capital is also audited by BDO, the fifth largest auditor of the world.
Indexa Capital is a securities agency and works with two of the leading custodian banks in Spain, Cecabank and Inversis, which are the banks where the current account and the securities account are opened. Both banks have a solvency ratio of more than 25%, being one of the highest in the banking system Spanish.
The current accounts, which Indexa Capital opens in your name, at Cecabank or at Inversis, are affiliated alDeposit Guarantee Fund (FGD)and therefore covered up to €100,000 per holder and account.
Additionally, both the pension plans and the EPSV are managed by Caser Pensiones and Caser Seguros respectively, and also deposited with Cecabank. All these entities are supervised by theGeneral Directorate of Insurance and Pension Funds (DGSFP), which also guarantees the safety of these two products.
On the other hand, the securities account in your name andthe assets linked to your pension plan or EPSVare not part of the balance sheet of the custodian bank (Cecabank or Inversis) or the management company (Caser Pensions or Caser Insurance), which means that said financial assets will always remain yours, regardless of any situation that might affect the custodian bank or the management company. AOther said account is attached to Investment Guarantee Fund (FOGAIN), which offers coverage of up to €100,000 per holder and account.
Lastly, it is important to highlight the degree of commitment of the Indexa Capital team and partners, who have invested more than 17 million euros of their own assets in the different Indexa Capital products. Just take a look at its advisory committee made up of Manuel Conthe (ex-President of the CNMV), Luis Martin Cabiedes (Cabiedes & Partners), Pedro Luis Uriarte (ex-CEO BBVA) and Luis Viceira (Vice Dean Harvard Business School) to see that the Security topic is capitalized in Indexa Capital.
Indexa Capital is a serious, safe and reliable entity, which complies with all investor protection regulations and has the full confidence of Explorador Financiero.
Indexa Capital currently offers three investment products. Here you can see graphically all its products in the year 2021, of which we will analyze in more detail both the Indexed Fund Portfolios and the Indexed Pension Plans and the EPSV:
Index mutual fund portfolios
This was the first product launched by Indexa Capital in 2016. The index investment fund portfolios are automated, globally diversified and appropriate to 10 different investor risk profiles. Most of the funds in these portfolios are institutional-class Vanguard funds, so the intrinsic fees of the funds are really low.
Pension plans
Indexed pension plans: Indexa Capital has two pension plans, one with fixed income and the other with variable income. Using different weightings of these plans, they have created 10 different portfolios adjusted to the investor's risk profile. The plans are made up exclusively of ETFs from the main world managers with global diversification, as well as being managed by Caser and deposited with Cecabank.
Voluntary Social Welfare Entities (EPSV): Portfolios identical to those of the Pension Plans with ETFs but with the particularities of the EPSV, an investment system only available to people with tax residence in the Basque Country.
Employment pension plans: This product has been available since November 2020, it is a multi-ascription employment pension plan (the same plan for many companies), for SMEs and large companies, which works with the same management model as the pension plans indexed with the particularity that it is contracted through the company in which you work. .
Fund of Index Funds
Since April 2019, it is also possible to hire a fund of index funds from Indexa Capital instead of a portfolio of funds through Renta4 or MyInvestor. This is an interesting option for all those investors who do not have the minimum initial investment or for companies or fund platform clients who prefer to contract the management of Indexa Capital via a fund instead of delegating the management of a fund to Indexa Capital. briefcase. For now, there is only one index fund called "Indexa RV Mixta Internacional 75", which invests 75% in global stocks and 25% in global bonds, is deposited in Renta4 Banco and co-managed by Renta 4 Gestión and Indexa Capital.
Now we are going to analyze in more detail the portfolios of indexed funds, the indexed pension plans and the EPSV offered by Indexa Capital, which is what interests us the most.
Since 2016 Indexa Capital has been offering automatically managed index fund portfolios. There are 10 different risk profiles in Indexa Capital as a result of the risk test that is carried out before contracting the automated management products. There are also three different sizes of portfolios (between 3,000 and 10,000 euros, between 10,000 and 100,000 euros and more than 100,000 euros), which multiplied by the 10 different risk profiles means that Indexa Capital has 30 model portfolios de_cc781905-5cde-3194 -bb3b-136bad5cf58d_money indexed.
All the model portfolios of Indexa Capital are globally diversified, thus achieving a better return/risk ratio. Most of the index funds that make up the model portfolios are from the Vanguard manager. Although Indexa Capital has access to the Institutional Plus class of the Vanguard index funds, whose main characteristic is that they are only accessible from an investment of 100 million euros and have notably lower commissions.
By contracting a portfolio of index funds, you delegate the management of the portfolio to Indexa Capital, so you will not have to worry about selecting the funds yourself or carrying out the tedious rebalancing. Indexa Capital rebalancing is automatic once a fund presents a percentage difference of 2.5 points with respect to its target weighting.
Over the course of a lifetime, an investor's risk tolerance can change substantially, for example due to a change in age or a change in the size of the portfolio. For this reason, Indexa Capital updates and repeats the risk test questions once a year to its clients.
4.1.- Main characteristics
Index Fund Portfolios
Minimum initial investment
€3,000
minimum contributions
€1
Total costs and commissions
Management fee
depository commission
Intrinsic costs of the plan
Max. 0.67%
0.15% - 0.44%
0.05% - 0.12%
0.07% - 0.11%
investment type
index funds
number of portfolios
10
Number of assets
from 2 to 9
Promotion
Two pieces of information stand out from the previous table. The first is the relatively high initial investment of €3,000, which is required to contract one of Indexa Capital's index fund portfolios. Once you've passed that threshold, your next contributions can be as low as you like. The second piece of information that draws attention is that the total costs and commissions are not fixed and can be as high as 0.67% (VAT included). In the following table we show you how the commissions vary depending on the amount invested:
amount invested
depository commission
Total
€3,000 - €10,000
0.44%
+
0.12%
+
0.11%
=
0.67%
€10,000 - €100,000
0.42%
+
0.12%
+
0.07%
=
0.61%
€100,000 - €500,000
0.39%
+
0.12%
+
0.08%
=
0.59%
€500,000 - €1,000,000
0.30%
+
0.12%
+
0.08%
=
0.50%
€1,000,000 - €5,000,000
0.25%
+
0.05% with Cecabank
or 0.06% con investment
+
0.08%
=
0.38%
€1,000,000 - €5,000,000
0.15%
+
0.05% with Cecabank
or 0.06% con investment
+
0.08%
=
0.28%
With the help of ourpromotionyou can drastically reduce the management fee during the first year. Once you are a customer, you can invite friends and family yourself, which will allow you to continue reducing the management fee.
Starting with an invested capital of 1 million euros, Indexa Capital offers the lowest and most competitive commissions in the market for Index Fund Portfolios..
4.2.- Investment strategy
Indexa Capital has 10 risk profiles and 3 different portfolio sizes, which means that Indexa Capital works with 30 portfolio models to offer each client a portfolio according to their investor profile and the amount of their investment. All portfolios are automated, invest in index funds and are therefore 100% passively managed.
Here are some drop-downs, in which you can see the weightings of the different asset classes in the different portfolio sizes:
-
Mostrar carteras de más 3.000 €
-
Mostrar carteras de más 10.000 €
-
Mostrar carteras de más 100.000 €
We are struck by the fact that even in profile #10 (higher risk tolerance), the weight of fixed income still exceeds 20%. Index Below we show you the drop-offs of the selection of funds corresponding to the different portfolios:
-
Mostrar carteras de más 3.000 €
-
Mostrar carteras de más 10.000 €
-
Mostrar carteras de más 100.000 €
The funds in the index portfolios have a very gooddiversificationGlobal with majority weight in the US of variable income funds and in Europe of fixed income funds. It should be noted that all fixed income funds have a hedge (Hedge) of the different currencies with respect to the Euro.
Indexa Capital applies its principles of indexed and automated management, which is giving it so much success, also to another type of investment, pension plans. Pension plans in general have a number of advantages over investment in mutual funds, but also a few drawbacks. If you are not very sure if pension plans are the most appropriate investment vehicle for you, we recommend that you read our article on thepension plans.
In this chapter, we not only talk about indexed pension plans, but also about Voluntary Social Welfare Entities, hereinafter EPSV. The only differences that EPSVs present with respect to indexed pension plans are the minimum initial investment, the annual tax bonus limit, costs and availability, since EPSVs can only be contracted as a resident of the autonomous community of the Basque Country. As both investment products are almost identical, in this chapter we are going to analyze the indexed pension plans and we will highlight the differences with the EPSV.
5.1.- Main characteristics
Indexed pension plans
Minimum initial investment
€2,000 (€3,000 for EPSV)
minimum contributions
€50
Total costs and commissions
Management fee
depository commission
Intrinsic costs of the plan
Other costs
0.61% (0.69% for EPSV)
0.39%
0.05%
0.10%
0.07% (0.15% for EPSV)
investment type
ETFs
number of portfolios
10
Number of assets
from 10 to 19
In this table you can see that the commissions are the same for the indexed pension plans and the EPSV. The only difference resides in the "Other costs" section, which are the fixed costs of auditing, fees, and brokerage, which decrease with the volume invested. As the volume managed by the indexed pension plans is greater than that of the EPSV, the fixed costs are distributed among a greater number of participants, so the percentage is lower.
It should be remembered that from 2021, the annual contribution limit is €5,000 for EPSV and the lower of €2,000 or 30% of your net earnings for pension plans. Therefore, when you take out an indexed pension plan or an EPSV through Indexa Capital, the minimum initial investment is equal to the maximum annual contribution. In other words, that year, you must not make any other contribution to another pension plan or EPSV. Once the minimum initial investment has been exceeded, the following contributions must be greater than €50.
5.2.- Investment strategy
Also for these products, Indexa Capital has 10 risk profiles. The Indexed Pension Plans and EPSV portfolios have the same composition of assets and the same weighting and are based on two classes of assets, whose weighting based on the risk profile can be found in the first drop-down. We show you the ETFs that make up these two asset classes in the second and third drop-down:
-
Mostrar carteras de más 3.000 €
-
Mostrar carteras de más 10.000 €
-
Mostrar carteras de más 100.000 €
As you can see in the first drop-down, in this type of product there is a risk profile, in which the weighting of the variable income reaches 100%.
The ETFs that are part of the pension plans are mainly physical replica, that is, they physically buy the shares of the fund, except for the case of "Amundi ETF Govt Bond Lowest", since there is no other physical replica ETF with costs low enough and adequate size. If you want to learn more about the types of replications of ETFs, we recommend that you read thisarticle.
Leading Robo-Advisor in Spain in number of clients and managed capital.
As we said at the beginning, it is neither luck nor coincidence that Indexa Capital is the leading automated investment manager in Spain with more than 900 million euros and more than 36,000 clients. Its results speak for themselves and there is no better advertising than having satisfied customers.
Pension plans with a high Rating in MorningStar
MorningStar is a well-known financial analysis company that, among other functions, has its own valuation rating for all types of financial products, including pension plans called the MorningStar Rating. This Rating measures different analytical parameters of financial products and compares them with each other.
It is a very positive sign that Indexa Capital's pension plans have a MorningStar Rating and if this is high, it means that said product is one of the best on the market within its category.
As we mentioned before, the Indexed Pension Plan Portfolios are made up of two pension plan funds, both with 4-star MorningStar Ratings.
High Rating on Trustpilot
The Trustpilot Rating measures las customer experiences and opinions. In 2021 there are more than 830 opinions on Indexa Capital with an average of 4.8 out of 5 stars, which corroborates that it is the leading Robo-Advisor in Spain andthat clients are very satisfied with Indexa Capital.
Large number of portfolios
The large number of Index Fund portfolios (10 risk profiles x 3 portfolio sizes = 30 model portfolios) and Pension Plan portfolios (10 portfolios) makes it possible to assign the ideal portfolio to all types of risk profiles and size of investments. The greater the number of portfolios, the more possibilities you will have to choose the one that best suits your risk tolerance profile and, what is more important, change it as time progresses and your risk tolerance varies. Indexa Capital has the widest range of portfolios on the market and best of all, you will not have to select it on your own but it is always recommended based on your level of risk.
low commissions
Passive management itself uses financial assets (ETFs and index funds) that are much cheaper than active management products. Additionally, Indexa Capital has access to the Institutional Plus class of many managers, mainly Vanguard, which is normally only accessible for investments of more than 100 million euros. This causes your commissions to be reduced even more. Indexa Capital has reduced its commissions 17 times since 2016.
Indexa Capital is the cheapest Robo-Advisor in the market for capitals over 1 million euros and for lower capitals it is in the Top3.
Excellent promotion for Index Fund Portfolios
using ourinvitation, you can benefit from the promotion that allows you to save the management fee on the first €10,000 of your Index Funds portfolio.
In addition, once you are a customer, Indexa Capital offers you a friend plan with which you can invite your acquaintances to save even more commissions. The promotion consists of inviting other people with your personalized link so that both you and your guest get €10,000 without additional management fees.
In this way, if you register with our links links you will get €10,000 without commissions and if later for each person you invite (without limit of invitations) and contract any of the investment products of Indexa Capital you will obtain another €10,000 more free of commission management.
Great team de professionals
The Indexa Capital team does not like the English term of automated manager (Robo-Advisor). The term Robo-Advisor has a connotation that makes one think of a robot and behind this platform there is a team made up of great professionals. This is very noticeable on its website, where you will find everything from the most basic information to the most technical details displayed in a very transparent way. Not only through the website but also when using the platform is when you realize the quality of the professionals that make up Indexa Capital and the added value that they bring you by delegating management to Indexa Capital._cc781905-5cde-3194-bb3b -136bad5cf58d_
Fiscal optimization
At the time of a partial withdrawal from a fund portfolio, Indexa Capital allows you to optimize the tax impact of your withdrawal in an automated and free manner.
This optimization consists of the following three options:
Each fund in our portfolio has a certain return. The default option is the first one, which is la most de people would select to pay the lowest possible taxes. There are particular cases where you may prefer to make some profits, in order to offset losses obtained with other investments.
New functionality "You pay"
In the world of investment, it is not only about knowing how to invest but also knowing how to divest once the financial objectives have been achieved. "Your pay" is a new functionality with great added value if you are looking for a recurring income such as the rental of a real estate investment or the dividends of a variable income investment or the coupon of a fixed income investment. It is a system that allows periodic withdrawals from your portfolio of funds in Indexa Capital and is similar to having a "pay".
To configure it, you only have to indicate the periodicity of this payment (eg monthly) and the amount you want to receive. With this information, Indexa Capital will tell us if it is appropriate and will allow us to activate recurring withdrawals.
High minimum initial investment
Possibly this is the biggest drawback to Indexa Capital. The minimum of €3,000 to start investing in fund portfolios and €2,000 in Pension Plans (€3,000 in EPSV) represents an entry barrier when selecting a Robo-Advisor or another . However, this does not seem to have been an impediment, since they are market leaders.
In either case, an account can be opened and funds transferred. When said funds reach the initial minimum, is when they are invested in the selected product. As long as the minimum initial investment is not reached, the money remains in the account opened at the depositary bank.
If you do not want to wait to reach the minimum initial investment, you can buy the Indexa fund of funds or the pension plans through, for exampleMyInvestorfrom €10. Once you have reached the minimum initial investment, you can make a transfer to the portfolio of pension plans or index funds managed by Indexa.
Not accessible to Spanish speakers outside of Europe
Although the Index Fund Portfolios are available to residents of the European Union, Switzerland and the United Kingdom, at Explorador Financiero we would applaud if this magnificent investment product was also accessible to our entire Spanish-speaking community, including Latin American countries._cc781905-5cde- 3194-bb3b-136bad5cf58d_
Fixed Income Diversification of Index Fund Portfolios
Looking more closely at the Index Fund Portfolios, we have noticed that in portfolios larger than €10,000 fixed income is not globally diversified but rather overweight Europe. From Explorador Financiero we encourage Indexa Capital to remodel the fixed income of these portfolios to achieve global diversification, which is present in smaller portfolios or in pension plans.
Opening an account at Indexa Capital is a 100% online and digital process, apart from being very simple:
-
To get started, click on thislinkif you want to benefit frompromotion of €10,000 managed free of charge the first yearin case you want hire one index fund chart.
-
Next, you must select the investment product (index funds, pension plans or EPSV) in which you want to invest and based on this product you must answer the questions of the risk tolerance test, which will determine your_cc781905-5cde-3194- bb3b-136bad5cf58d_profile risk. Once your risk profile has been prepared, Indexa Capital will recommend the ideal portfolio for you.
-
To finish creating an account, it is necessary to fill in your personal information, choose the custodian bank and sign the contracts online.
-
Once your account in the custodian bank has been activated, Indexa Capital will notify you so that you can make your first contribution by transfer, o transfer of funds from another entity. Your contributions will be automatically invested in the selected portfolio once the funds reach the minimum initial investment of the selected product.
You can also open an account for your children as their guardian. It is a good way to start them from a very young age in the wonderful world of savings and investment.
8.-Assessment
Since the American companies Betterment and Wealthfront introduced this business model, Robo-Advisors have grown exponentially and are one of the most common investment alternatives in many European countries due to their advantages of automation, low costs and high diversification. . In Spain and in Spanish-speaking countries, the volume managed by Robo-Advisors is still far from reaching the levels of European countries.
ohUsing Indexa Capital's automated management is a success! It has low-cost and highly diversified portfolios and algorithms that will allow you to automate all the management. The level of transparency and professionalism is reflected in the website and in the investment platform, which strengthens our conviction that we are delegating the management of our money to the best possible hands. That is why Indexa Capital has managed to be the leader in the Robo-Advisor sector in Spain and both its fund portfolios andindexed as their pension plans are year after year in the top positions of historical profitability.
The high minimum initial investment is possibly the most important negative point. In this way, Indexa Capital suggests that it is not part of its strategy to get new clients at any price. It seems that this strategy has worked for them and this entry barrier is not such a serious problem, since they are the Robo-Advisor with the highest managed volume and their clients are very satisfied.
Summarizing in a few words, Indexa Capital is a serious, safe, professional and transparent investment service that is totally recommended and deserves all our trust.
So far our analysis of Indexa Capital. We would like to hear your opinion about this Robo-Advisor. Are you their client? What has been your experience with them?
Feel free to comment! Your opinion interests us