Whether you’re a seasoned investor or someone creating an investment portfolio for the first time, chances are, you could benefit from ETFs. Like stocks and bonds, ETFs are an investment security that can complement your overall strategy and help you reach your financial goals. While there’s no shortage of ETFs trading on a daily basis – it can be challenging to find a quality ETF for a bargain. We’ll go over everything you’ll need to know about cheap ETFs and how to start investing.
How To Find Cheap ETFs
Exchange-traded funds (ETFs) are investment funds that trade like stocks on popular exchanges and through investment firms. ETFs can be made up of a mix of stocks, bonds, or even commodities like metals, coffee, and sugar. ETFs often track indexes; they can also track currencies or entire industries such as oil or robotics.
ETFs are popular because they are an easy, affordable way to invest in an entire market or industry. This is especially helpful if you’re looking to diversify your portfolio. Many investors buy ETFs in the hopes of spreading their money across multiple securities or industries to achieve a more consistent, steady return. While ETFs come with many benefits, they also come with some costs.
Because ETFs are index-tracking funds, they are typically cheaper than mutual funds, as there are no expensive fund managers or analysts to pay for. However, some ETFs charge fees to cover annual expenses – otherwise known as an expense ratio. It’s calculated by dividing the fund’s costs by the fund’s assets. The average ETF has an expense ratio of 0.44% — or $4.40 in annual fees for every $1,000 you invest.*
On top of these fees, some popular ETFs can trade for hundreds of dollars a share. If you aren’t sure how to choose which ETF to invest in (or you don’t have the time to do so), a managed Investment Account from MoneyLion may be the way to go. Plus, MoneyLion will invest in fractional shares for you, so you don’t need the full share price. You can start with even $1.
Are ETFs Hard To Invest In?
No! ETFs trade on exchanges just like regular stocks. You can buy and sell them on any given trading day through your brokerage account. In fact, the only challenging part is choosing the right ETF and the right brokerage platform.
A good brokerage platform should make it easy to find quality, cheap ETFs you’d want to invest in. However, this isn’t always the case. If you’re overwhelmed by too many options, consider investing in a professionally managed ETF portfolio.
MoneyLion’s investment tools allow you to take advantage of ETFs through professionally managed portfolios. We can help you choose the ETF portfolio that’s right for you based on your investment goals, risk level, and personal preferences. There are no minimums to begin investing, so you won’t need to put up a lot of money up front.
Can You Choose Which ETFs You Invest In With MoneyLion?
MoneyLion always takes into account your preferences when designing your personalized investment portfolio. Although you won’t pick the individual ETFs in your portfolio, you have control over your portfolio’s theme and risk level. You can see which ETFs are in which portfolio, and make adjustments as you see fit or accept MoneyLion’s expert recommendation as is.
You start by answering a few questions about your financial goals, the way you want to approach investing, and how much risk you are willing to tolerate. MoneyLion will match you up with a portfolio based on your answers to those questions. Your portfolio will reflect your own investment strategy and support your financial goals. From there, you can choose to customize further by adding or decreasing risk or adding thematic investing portfolios.
Thematic portfolios allow you to channel your personal preferences into your investments. They can also complement your core portfolio or add a touch of diversification that could pay off in the long run. Even better, you won’t have to do the hard work yourself to find quality, cheap ETFs – you can leave it to the experts to bring you a handpicked selection of top-notch funds.
MoneyLion offers a selection of portfolio themes in collaboration with Global X ETFs and Wilshire Associates. Themes can reflect certain industry trends or investing strategies. Some examples of portfolio themes include robotics & artificial intelligence, socially responsible companies, and clean energy. You can also choose from high-growth or income-generating funds.
Start Investing in ETFs with MoneyLion
Are you ready to start investing in high-quality, cheap ETFs? Getting started is simple, download the MoneyLion app to create an account.
When you have an investment account set up – it’s time to start adding funds to your portfolio! It’s a good idea to set up automatic deposits so you can keep your investment portfolio on track with consistent growth.
Want to add extra funds and to your Investment Account? Add RoarMoney to your MoneyLion account. RoarMoney is an online checking account from MoneyLion that offers a host of benefits like debit card rewards that convert to investment deposits, early paycheck deposit and financial monitoring tools.
MoneyLion can help you take your finances to the next level through investing, banking, and credit!
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Investment advisory services provided by ML Wealth LLC. Investment Accounts Are Not FDIC Insured • No Bank Guarantee • Investments May Lose Value. For important information and disclosures relating to the MoneyLion Investment Account, see Investment FAQs, Form ADV Brochure, and moneylion.com/investing. Accounts are subject to a monthly account fee of $1, $3 (accounts valued over $5,000), or $5 (accounts valued over $25,000).
MoneyLion is a financial technology company, not a bank. RoarMoney℠ demand deposit account provided by, and MoneyLion Debit Mastercard® issued by, Pathward®, National Association, Member FDIC. RoarMoney is a service mark of MoneyLion. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International. Funds are FDIC insured, subject to applicable limitations and restrictions, when we receive the funds deposited to your account.
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Instacash is a 0% APR cash advance service provided by MoneyLion. Your available Instacash advance limit will be displayed to you in the MoneyLion mobile app and may change from time to time. Your limit will be based on your direct deposits, account transaction history, and other factors as determined by MoneyLion. This service has no mandatory fees. You may leave an optional tip and pay an optional Turbo Fee for expedited funds delivery. For a $40 Instacash advance with a Turbo Fee of $4.99, your repayment amount will be $44.99. Generally, your scheduled repayment date will be your next direct deposit date. An Instacash advance is a non-recourse product; you will not be eligible to request a new advance until your outstanding balance is paid. See Membership Agreement and help.moneylion.com for additional terms, conditions and eligibility requirements.