← GO BACK

October 1, 2025

ETP Risk Insights: Next-Level Brokerage

Autor:
Bavest
Markets

The investment world has changed massively over the past ten years. More and more private investors are entering the capital markets, not only through traditional banks, but above all via a new generation of fintechs, neo-brokers and trading platforms that make investing possible with just a few clicks.

A key result of this development is the rapid growth of Exchange Traded Products (ETPs). Whether ETFs, ETCs or ETNs, exchange-traded products are now among the most popular investment vehicles worldwide. They impress with their cost efficiency, transparency and ease of use.

But user expectations are rising. Private investors not only want access to products, but also clear information about costs, risks and sustainability. That is exactly what is crucial for trusting a brokerage platform.

With the new ETP Risk Insights Endpoints Bavest extends the API with exactly these functions. From now on, we cover over 10,000 ETFs and ETPs from the USA, UK and EU and provide advanced metrics that go far beyond price data. This breadth and depth of data is unique to Bavest — we're the only API that provides such comprehensive coverage of risk, cost, and compliance metrics.

What are ETPs anyway? ETFs, ETCs and ETNs at a glance

- ETFs (Exchange Traded Funds): The most well-known type of ETPs. They usually track an index such as S&P 500 or DAX, are broadly diversified, strictly regulated and are considered cost-effective.

- ETCs (Exchange Traded Commodities): These represent individual raw materials such as gold or oil or commodity baskets. They are often structured as bonds and may involve additional risks.

- ETNs (Exchange Traded Notes): Bonds issued by banks that represent an index or strategy. Investors do not directly own the underlying asset and bear issuer risk.

All three types of products are in demand and they have very different risk profiles that investors need to understand.

Why the ETP market is booming — and why the broker concerns

The market for ETFs and other ETPs has been growing unabated for years. ETFs alone manage over 10 trillion US dollars worldwide. For brokers and trading platforms, they have long been a key revenue and growth area. Reasons for this boom:

  • Cost efficiency: ETFs are significantly cheaper than actively managed funds and are therefore particularly attractive for beginners.

  • access: With broker apps, retail investors can make diversified investments even with small amounts.

  • Themed investing: From AI to clean energy. More and more specialized ETFs make it possible to link portfolios with trends and personal values.

  • Regulatory Support: Politicians and regulatory authorities rely on transparent, broadly diversified products such as ETFs.

For brokers, this means that if you want to grow, you have to offer ETPs — and present them with maximum transparency.

Investors demand risk and cost insights

User requirements have changed. Private investors are not only asking for access, but also for answers to crucial questions:

  • How much does the product really cost me (management fee, TER)?

  • How high is the risk (volatility, beta, tracking error)?

  • Does the product match my scores (ESG or SRI scores)?

  • Is it compliant and secure (KID documents in local language)?

Brokers who answer these questions transparently increase customer trust and differentiate themselves from the competition.

The new ETP Risk Insights endpoints

The Bavest API documentation with the ETP endpoint

With the Bavest API, brokers and trading platforms can map exactly that:

Performance & costs
- Management fee and performance fee
- Net Expense Ratio and Total Expense Ratio

Advanced Risk Metrics
- Beta (1, 3 and 5 years)
- Volatility and tracking error
- Sustainable Risk Indicator (SRI)

Leverage & structure
- Labeling of leveraged, complex and structured products
- Benchmark status and index tracking
- Type classification

Distribution & focus
- Distribution or restocking
- Category, investment focus and niche strategies
- Indices shown

Multilingual KID documents
- EU-PRIIPS-compliant KIDs in German, English, French and Italian
- Directly via API for automated compliance and faster product listings

Backrock iShares KID document: KID documents are important documents for investors with information such as risk profile or further information

Why brokers benefit
  • Better customer experience: Investors immediately see risk, costs and sustainability and make well-founded decisions.

  • More trust: Transparency increases customer loyalty and reduces churn.

  • Compliance security: Brokers meet regulatory requirements efficiently and automatically.

  • Faster product integration: New ETFs and ETPs are easier and faster to list.

  • Exclusive advantage: Only Bavest offers this level of data coverage in this depth and diversity — a real competitive advantage.

From data to competitive advantage

The new ETP Risk Insights endpoints turn raw data into real differentiation for brokers. Platforms can not only list products, but also present them with clear insights.

The result: more confidence among investors, higher trading volumes and a stronger competitive advantage.

conclusion

The boom in ETFs and ETPs opens up huge opportunities for brokers. At the same time, there is increasing pressure to offer users transparency and trust. By expanding our API to include ETP Risk Insights endpoints for over 10,000 products from the USA, UK and EU, Bavest enables brokers, neo-brokers and banks to bring their trading offerings to the next level. This wealth of data is only available from Bavest — the only provider that combines risk, cost and compliance insights in this coverage.

Book a demo:

blog

More articles