Since they began trading in the last decade of the 20th century, exchange-traded products (ETPs) have revolutionised the global financial landscape. Their success is due to their flexibility, transparency, high liquidity, and accessibility, which have opened the doors to a growing number of investors. These products allow asset managers to replicate the performance of underlying markets and implement advanced investment strategies that were previously out of reach due to high entry barriers.

The Evolution Towards ETIs

In this context, ETIs (Exchange Traded Instruments), like those offered by altarius | ETI, represent the next evolution of ETPs, combining the best of these traditional instruments with unprecedented flexibility and greater accessibility. Through ETIs, alternative investment strategies that were previously reserved for large institutions or high-net-worth investors are now within reach. Today, thanks to this innovation, the benefits of advanced investments are democratised for a broader audience.

The Advantages of ETIs

The main advantage of ETIs is their adaptability to the needs of the market and investors. Unlike other financial vehicles, ETIs allow replication of a wide range of underlying assets and strategies, from equities and bonds to commodities, cryptocurrencies, and diversified portfolios. Additionally, managers can implement more sophisticated strategies, such as short positions, leverage, or customised indices, with an operational ease that is not available in traditional products.

This versatility allows investors and managers to respond swiftly to market fluctuations, optimising their portfolios with precision and efficiency. ETIs not only replicate existing markets but also facilitate access to alternative assets that have historically been inaccessible to retail investors.

Democratisation and Accessibility

One of the greatest barriers to alternative instruments has been their exclusivity. Traditional funds and other structured solutions often require high minimum investments and complex bureaucratic processes, excluding a large portion of investors. ETIs, however, remove these barriers by being publicly listed and available through global platforms such as brokers and banks. Furthermore, with an accessible nominal value, like that offered by altarius | ETI (€1 per unit), retail investors can participate in strategies previously limited to professional and institutional investors.

Liquidity and Cost Efficiency

Moreover, intraday liquidity is one of the most notable advantages of ETIs. By being listed on recognised stock exchanges, such as the Börse Frankfurt or the Portfolio Stock Exchange, investors can buy and sell their positions in real-time during market hours. This feature provides the necessary flexibility to make active portfolio adjustments and respond swiftly to economic movements or changing market conditions. Additionally, thanks to the participation of market makers, this liquidity is consistently maintained, facilitating efficient execution of trades.

Similarly, ETIs benefit from a cost-efficient structure. The issuance and maintenance of an ETI require fewer resources compared to other financial products, such as mutual funds or structured certificates. The reduction in operational costs enables managers to offer more competitive products, directly benefiting end investors.

The Future of Investment with altarius | ETI

altarius | ETI is leading the way in the evolution of alternative investments by offering a platform that combines:

• Advanced technology
• Regulatory compliance
• Global accessibility

The innovation of altarius | ETI not only simplifies the issuance of ETIs but also promotes the adoption of advanced and sustainable strategies, aligned with current market demands. As the adoption of ETIs grows, these instruments are redefining access to new financial opportunities with tangible benefits for all participants.

With ETIs, managers and retail investors now have a tool that enables them to compete on equal footing, optimise their portfolios, and participate in strategies that were previously unattainable. altarius | ETI is not only transforming the market; it is shaping the future of investment.

Legal Notice

The information in this article is for illustrative purposes only and should not be construed as financial advice nor as an invitation to subscribe to financial instruments. Investing in alternative products, including complex products such as ETIs or ETPs, carries risks that should be considered before investing. Please ensure that you understand and agree with the risks of the investment by seeking professional advice if necessary.

Before investing, make sure to read and understand the KID ("Key Information Document") for each product, as well as the risk warning. Investments are subject to the risk of loss.