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How Do ETFs Compare to Single Stocks?

Comparing ETFs to single stocks is like comparing boats to cars. They have different characteristics, and are potentially appropriate depending on the needs and expectations of the investor.

Financial professionals usually don’t recommend picking investments just because they are a specific kind of investment.
They consider the investment’s risk and return characteristics, assessing how those fit the investor’s overall financial plan.

ETFs are often seen as an efficient way to invest for the long-term because they can help investors diversify their investments among many different stocks. At Stash, we believe ETFs can be a strong foundation for beginner and general investors who want to invest in a diversified way.

Adding individual stocks to a portfolio containing ETFs can help further diversify investments.

A portfolio of only single stocks is typically only recommended for investors who have advanced and/or professional financial knowledge. Equity analysts and experienced traders are usually more involved in buying, selling, or recommending individual stocks.

Stash offers both to help give investors a variety of options that could help them meet their individual financial goals.

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