Using ETFs to implement an asset allocation

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Simplifying the process of building an investment portfolio

Investment products are the basic building blocks of your portfolio. However, picking the right products can be daunting due to the sheer number of choices available for even the simplest asset classes. With thousands of possible choices, simplifying this process with the right guidance is an important step toward building a portfolio that meets your needs.

ETFs are baskets of many individual investments

For many investors, exchange-traded funds (ETFs) offer a manageable way to build a diversified portfolio. ETFs are baskets of many individual investments, such as stocks, that often track an asset class or index. “Tracking” means that the ETF replicates or follows the asset class or index to seek the same results. For example, by purchasing an ETF that tracks the S&P 500 stock market index, you can add the entire asset class of U.S. stocks to your portfolio with a single product.

ETFs often have other benefits as well, such as low fees (ETFs that track an index don’t have to pay a portfolio manager to actively manage the fund) and a transparent price (ETFs trade on an exchange like a stock, so you can easily look up the current market price at any time).

ETFs can help you reach your goals

By building a portfolio of ETFs that track various asset classes, such as stocks and bonds, you can construct portfolios that help you meet your goals. As a result, ETFs are a great way to simplify the process of building a portfolio and investing in your future.

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