What’s the difference between risk level and risk tolerance?
Risk level is determined by a combination of factors.
Risk tolerance is how much risk you feel you can take. Are you ready to risk bigger losses for the potential of bigger rewards? Then you can tolerate a lot of risk. (Risk tolerance: High.) If you want to play it safe and have potentially smaller returns to guard against loss, you can tolerate less risk. (Risk tolerance: Low.)
Your risk level is set by Stash based on a number of factors. You call fall into Conservative, Moderate, or Aggressive. Choosing your risk tolerance helps determine your risk level, but we also must take into account your financial situation, age, and a variety of other factors.
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.
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