Multi-asset diversification among retail FX firms continues as IG Group goes down the ETF route

British spread betting and CFD company IG Group Holdings plc (LON:IGG) announced on Thursday that it has completed the acquisition of online investment management company InvestYourWay as part of the firm’s strategic aim of expanding its product offering.

IG Group’s acquisition of a firm which provides services outside the FX trading sector reflects the line being taken by a large number of FX companies which are expanding and diversifying their product ranges.

FinanceFeeds has conducted extensive research within major retail companies, and the resounding conclusion is that evolving into multi-asset trading environments is the way ahead for most companies.

In the case of IG Group’s recent acquisition, the ownership of InvestYouWay will assist IG Group in delivering on its partnership with BlackRock to offer a range of ETF-based investment portfolios, as per its previous announcement in July.

The technology developed by InvestYourWay will be integral to the delivery of the ETF-based investment portfolios. Interestingly, FinanceFeeds took a close look inside Hargreaves Lansdown PLC (LON:HL) recently, a company which this industry focuses very little attention on, but is the UK’s largest retail online financial services firm, which has a market cap of £6.8 billion and its own proprietary platform from which multiple investments, including CFDs, ETFs, ISAs, SIPPs and many more can be managed in one place.

Clearly, the direction paved by Hargreaves Lansdown is now being emulated by FX companies, IG Group being one of the main examples. Indeed, one particular senior IG Group executive, former CFO Christopher Hill, has now joined Hargreaves Lansdown as CFO.

Michael Newell, Founder and CEO of InvestYourWay, is joining IG Group to drive forward its investments offering.

With regard to the acquisition, Ian Peacock, Head of IG UK, commented

“We’re delighted to have acquired such an innovative business as InvestYourWay and look forward to working alongside Michael in his new role at IG. We believe that by combining InvestYourWay’s innovative technology and IG’s world class platform and development expertise we’ll be able to build a truly best in class offering in the investments space in partnership with BlackRock.”