What am I investing in on Stash?
ETFs make up the majority of the investments currently available on Stash. ETF stands for Exchange-Traded Funds. An ETF is a basket of investments (for example: stocks and bonds) bundled into funds that are traded on an exchange. That fund owns the underlying assets (i.e. stocks, bonds, cash, or even physical gold bars!) and tracks an index – or group of companies with something in common.
If you’re interested in investing in specific industries such as technology, you can invest in an entire group of tech stocks as opposed to choosing just one company to purchase their shares. And when you purchase fractional shares, you can build a diversified portfolio with as little as $5.
Stash picks a select group of the thousands of ETFs and stocks available, based on factors like low fees, managed risk, and historical performance.
Stash recommends a set of those investments for you, based on the profile you fill out when you sign up. For each investment available to you on Stash, you can see the primary companies included, read our investment profile, and you can always visit the fund website for more information.
Q. What does ETF stand for?
ETF stands for Exchange-Traded fund. Here is breakdown of that means. Exchange-Traded means you can buy and sell ETFs on public stock exchanges like the Nasdaq or the New York Stock Exchange. In this context, a fund is a bundle of assets, usually stocks, bonds and/or cash. These bundles of stocks, bonds, and cash usually…
Q. Do ETFs pay dividends?
It depends on the ETF! Some ETFs definitely do pay dividends. And just like companies decide when to pay dividends to investors, managers of ETFs decide when or if an ETF will pay dividends. Usually ETFs pay dividends depending on whether the companies within the fund are also paying dividends and if the prospectus (aka…
Q. Are ETFs safe?
Investing involves risk, even when investing with ETFs. Like other investments (stocks, bonds, mutual funds), ETFs are deemed “safer” or riskier depending on what is in the investment. Risk isn’t determined by the type of investment as much as it is determined by what is ‘under the hood’ of each investment. In the finance and…
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Now That’s What I Call an Investment! ETFs Explained
You may have heard that Exchange-Traded Funds are a great first investment. But what's an ETF? We use a helpful analogy to break it down.
Stay up to date on ETFs and learn something new each week.