Mintos ETF portfolios offer investors a convenient and diversified way to invest in exchange-traded funds (ETFs). Unlike traditional ETF investments, where investors must purchase whole ETF units, Mintos allows investors to acquire partial ETF units, also known as fractional ETF units, via a portfolio management service. This allows investors to invest in an ETF without having to purchase an entire unit. As a result, investors can gain exposure to a wider range of ETFs without having to commit substantial capital, which can be particularly beneficial for investors with smaller investment amounts.
When you invest in a fractional ETF unit on Mintos, you are co-owning that unit with other investors on Mintos. The custodians (banks or other regulated third-party institutions) that hold the ETFs on your behalf keep track of the ownership of each ETF unit, and Mintos keeps track of the ownership of each fraction of those ETFs. This ensures that investors receive their share of the ETFs’ dividends and capital gains.