25.07.2024
Two years ago, LHV added the option for its Growth Account customers to buy pieces of shares in popular companies for as little as EUR 1. To date, almost 10,000 customers have already taken advantage of this opportunity.
LHV is the only bank in Estonia that offers its customers the possibility to buy individual shares in fractions, allowing them to acquire pieces of shares of Tesla, Nvidia, Apple and other popular companies through their Growth Account. Over the past two years, customers have been actively using this opportunity, with almost one in six investors out of more than 60,000 Growth Account holders buying individual shares.
According to Sander Pikkel, Head of Investment Services at LHV, local small investors appreciate the opportunity to buy shares in the world’s leading companies, which can otherwise reach several hundred dollars. ‘The aim of the Growth Account is to make investing easy and affordable for everyone. Many small investors dream of the chance to share in the growth of popular and successful companies such as Apple, Microsoft, Amazon or Nvidia, but to buy a whole share would require several hundred dollars at a time. With a growth account, however, you can buy a small piece of a selected company’s stock every week and share in their success even if the amounts invested are still small,’ explains Pikkel.
Nearly three quarters of clients investing in individual shares through a Growth Account have selected up to three companies in their portfolio. So far, the most popular companies among Growth Account customers have been Apple, Alphabet (Google), Nvidia, Tesla, Microsoft, Amazon, Meta, Coca-Cola, Wise, and Pfizer. This year, however, Nvidia has been by far the most popular, with its shares up 140% since the start of the year. Over the past two years, for example, Apple’s share value has increased by 26%, Alphabet’s by 25%, and Microsoft’s by 31%.
In total, the Growth Account today offers 30 individual stocks from both the US and Europe and 47 equity funds. The most popular funds are SXR8, which tracks the S&P 500 index of the 500 largest US companies; EXXT, which brings together 100 of the largest technology companies in the US (Nasdaq 100 index); VWRL, which tracks global companies; as well as COINXBE, which tracks Bitcoin movements; and ECAR, which tracks the index of companies involved in the production and supply chain of electric cars.
The LHV Growth Account is already being used by more than 60,000 Estonian investors. This service is designed to bring investing to the masses, making investing easy and affordable for everyone. The Growth Account has proven that investing is not expensive or time-consuming and does not require a lot of prior knowledge. With low fees, smaller amounts can also be invested by spreading risks. The user only needs to select the suitable funds or stocks, and transfer the money to their Growth Account. The bank purchases securities for clients on the Wednesday of each week. By using the permanent payment option or micro-investing, payments also reach the Growth Account automatically.
Check the last five years performance of the stocks mentioned in the article here.
LHV Group is the largest domestic financial group and capital provider in Estonia. The LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. The Group employs over 1,100 people. As at the end of June, LHV’s banking services are being used by 433,000 clients, the pension funds managed by LHV have 118,000 active clients, and LHV Kindlustus protects a total of 168,000 clients. LHV Bank Limited, a subsidiary of the Group, holds a banking licence in the United Kingdom and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.
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