Vanilla Funds ETP Blue Chip Portfolio Review
Investment platform Vanilla Funds offers a number of ETPs.
But what does ETP stand for? Akin to stocks, Exchange Traded Portfolios are financial products traded on stock markets. They are formed to mirror the outcomes of an underlying index, asset, or group of securities.
Products like commodity pools, exchange-traded notes or ETNs, and exchange-traded funds or ETFs are examples of ETPs.
If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or WhatsApp (+44–7393–450–837).
This includes if you are looking for alternatives or a second opinion.
Some facts might change from the time of writing, and nothing written here is formal advice. So, potential investors shouldn’t invest or decide not to invest based on this review of Vanilla Funds Blue Chip Portfolio ETP alone.
For updated guidance, please contact me.
Vanilla Funds Explained
Just like passively managed index funds, the platform’s key target is to give investors simple and efficient investing options.
Vanilla Portfolios seeks to ease the process of selecting funds for individual investors, given the growing complexity of the investment space.
Vanilla Funds ETPs
These are accessible to investors throughout Europe via different brokers, plus intermediary and self-directed platforms.
These include:
· Ardan
· FPI
· Hansard
· Hartley Pensions
· IFGL SIPP
· ITA
· Momentum
· Overseas Trust & Pension
· RL360
· Sovereign
· Utmost IOM
The Vanilla Blue Chip Portfolio, the first ETP Vanilla Funds kicked off, became live on March 26, 2024 on the London Stock Exchange.
Blue chips meaning
Blue-chip stocks are ownership stakes in reputable, financially secure businesses with solid track record.
These firms are well-known for steady revenue and dividends, and they frequently top their respective industries.
Vanilla Blue Chip Portfolio ETP
The Vanilla Funds Blue Chip Portfolio is actively managed. So, its holdings are frequently evaluated and altered, while giving importance on leading US stocks investments.
The investor owns the actual equities in the portfolio since the ETP is backed by real assets.
Acquiring and selling is simple too, sans the hassles of margin accounts or futures.
USD-denominated Blue Chip Portfolio
The top 10 holdings as of March 2025 include Berkshire Hathaway class B shares at 25.15%, Meta Platforms class A at 6.67%, and Broadcom Inc. at 6.65%.
For sector allocations, Financials have the largest at 25.1%, closely trailed by IT with 24.8%. Meanwhile, Communications Services, Consumer Staples, and Consumer Discretionary respectively took 20.1%, 16.8%, and 13.2%.
In terms of performance, the USD-denominated Vanilla Funds Blue Chip Portfolio ETP showed returns of 0.90% at one month, 3.90% at three months, 10.83% at six months, and 23.29% at one year.
A 1.3% management fee applies.
GBP-denominated Blue Chip Portfolio
As per the latest available data for March 2025, the GBP-denominated investment fund’s top 10 holdings include Berkshire Hathaway at 25.15%, Meta Platforms at 6.67%, and Broadcom Inc. at 6.65%.
In terms of sector composition, Financials grabbed the biggest portion at 25.1%, followed by IT at 24.8%, Communications Services at 20.1%, Consumer Staples at 16.8%, and Consumer Discretionary at 13.2%.
The same 1.3% management fee is applied.
The fund’s performance includes:
· One-month loss: 0.47%
· Three-month return: 5.23%
· Six-month return: 15.75%
· 12-month return: 23.81%
Advantages and disadvantages of Vanilla Funds Blue Chip Portfolio ETPs
Pros of investing in Vanilla Funds ETPs
· Vanilla Funds ETPs, such as the Vanilla Blue Chip Portfolio, concentrate on big, reputable businesses that have gained fame for stability and buildout potential. This gives investors access to superior assets that are less erratic overall.
· Investors can acquire and dispose ETP shares at market prices any time during the trading day. Such liquidity allows for flexible asset management.
· ETPs are transparent about their holdings and performance. Investing in them can provide balance for a more diversified basket.
· Vanilla Funds seeks to simplify investing by offering meticulously crafted portfolios based on individual clients’ needs.
Cons of Blue Chip ETP
· The Vanilla Blue Chip Portfolio ETP does have growth potential through exposure to well-known stocks, but investors should be aware of the downsides too.
· Earnings cannot be failsafe since this ETP has no capital protection. Meaning, return on investment or ROI may be far lesser than what was originally invested.
· Each quarter, the portfolio is rebalanced using both technical and fundamental standards. This may not always yield the best results, especially if the markets suddenly swing during the investment term.
· Investors must go through advisors to access the investment, so they should pick one they trust to build their portfolio.
