When investing in themed funds (or Exchange-Traded Funds/ETFs), you are investing in a fund (which contains a collection of companies, grouped by theme) that aims to mirror the performance of a specific stock index without buying stocks in each company individually. With a stock ETF (which is what Wombat offers), you don’t own shares in the individual companies, instead, you own shares of the ETF. As Wombat is a micro-investing platform, you don’t need to buy a whole share of an ETF, instead, you can own fractions of the ETF for just £10 with a Standard GIA. ETFs are considered one of the best ways to diversify your portfolio and are a simple and powerful way to help you realise your investing goals. 

With Wombat’s fractional shares, you can invest, and own a fraction of a whole share from just £10, in individual companies. So no matter your budget, you can own a piece of brands like Tesla, Apple, Amazon or AMC. Fractional shares are only available in General Investment Accounts, though whole shares are also available in ISAs and Junior ISAs.

ETFs can be a more cost-efficient and convenient way to diversify your portfolio (most are exempt from PTM Levy and UK Stamp Duty) because with one single trade you get exposure to multiple assets. However, individual shares, like growth stocks, have the potential to yield greater returns and give you more control to decide exactly which companies to invest in. It’s important to remember that diversification does not fully protect you from risk and does not guarantee returns or eliminate the potential for loss.

We have packaged investments into carefully curated themed ETFs that provide you with access to a broad range of companies and brands that match a specific theme. We believe we have a themed fund to suit everyone’s interests and beliefs.

For more information regarding the themes, please read the Key Investor Information Documents (KIID) and factsheet for each themed fund. You can view this document by clicking on the individual themed fund in the app.

Fund (ETF) managers provide an information sheet called a KIID (Key Investor Information Document) which includes all the key facts about a fund. It describes what the fund does, the investment risk, charges, and performance to help you compare different funds and assess whether that particular investment is right for you. It comes in a standardised format, set out by European regulations.

Round Ups allow you to easily build up a pot of money via rounding up spare change from your everyday purchases. So, if you use your linked account to buy a coffee for £2.30, we’ll automatically round it up and add £0.70 to your Wombat account. Twice a month, we’ll invest the spare change directly into a themed fund, share or fractional share of your choice, or into your Wombat cash account ready for you to invest.

Please note that if the spare change totals less than £10 at the time of the scheduled direct debit, the funds will not be debited from your bank and will instead carry over into the next scheduled date your Round Ups pot is due to be debited. The minimum investment value whether through Round Ups, Auto Invest or One-off Buy is £10. Round Ups will also never take you into your overdraft and you can pause or resume Round Ups at any time.

Round Ups are currently only available with a Wombat Standard ISA, GIA or JISA. Fractional shares are only available in General Investment Accounts, though whole shares are also available in ISAs and Junior ISAs.

With Auto Invest, you can specify a fixed monthly amount to invest in particular themed funds or stocks. It’s a convenient and consistent way to make regular investments and build your portfolio. Auto Invest is also a great way to utilise pound-cost averaging, which means regularly investing the same amount, into the same asset, at regular intervals. This means you will own assets for varying purchase prices and therefore can reduce the overall impact of price fluctuations, as over time the cost per share will average out. Please note, Auto Invest is currently only available with Wombat Standard ISA, JISA or GIA.