Are stocks more volatile than ETFs?
Stocks tend to be more volatile than ETFs because their performance relies on how successfully a single company is performing.
An individual stock represents ownership of one specific company. When you buy shares of this company, you are relying on their individual success to bring you gains.
If the company performs well, this can lead to potentially greater returns. By contrast, if that company performs poorly, this may lead to bigger losses.
With ETFs, the performance depends on how the group is doing as a whole, not just one company.
One reason some investors prefer ETFs to individual stocks is that it is easier to diversify their investments.
Rather than just owning one stock in a particular sector, ETFs allow an investor to own shares in different companies in a given sector or across multiple sectors. If one company is having a bad quarter (or year), its performance could be balanced out by others that are doing well.
Related questions View all Tips & Guidance
Q. When will my trades get executed in my Smart portfolio?
Once your money has completed the transfer and arrived in your account, we’ll execute your trades. Typically, this takes 1-2 business days. Please note that a business day is Monday through Friday, excluding weekends and US market holidays. DISCLOSURES This type of account is a Discretionary Managed Account.…0
Q. Once I deposit money into my Smart portfolios, do I need to do anything?
Nope! We’ll handle the rest—this is smart investing, after all. You might want to consider investing (depositing money) regularly, though. That way your investments can grow through the magic of compound interest. DISCLOSURES This type of account is a Discretionary Managed Account.…0
Q. How much can I withdraw from my smart portfolio?
You can request a withdrawal from your smart portfolio for up to the total value of your Smart portfolio — minus any pending withdrawals. For example, if your Smart portfolio is worth $1,000, you can request a withdrawal for the full balance of $1,000 or any number up to $900.…0
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