When it comes to the world of investing, few trends have been as popular as the growing ETF market. Exchange-traded funds (ETFs) are tradable products that can be bought and sold on the market like regular stocks, and track groups of equities, bonds, etc. For instance, if you were interested in investing in sustainable/green stocks but couldn’t decide on a single security, you might consider investing in an ETF that specifically tracks sustainable stocks. In doing so, you diversify your portfolio among different securities while retaining your focus on sustainability.
But how should I choose an ETF? Just a quick Google search of ETFs leads to hundreds of different funds, all tracking different sectors and securities. Well, you should start by narrowing down your fields of interest. Investors, besides investing for profit, invest in what they believe. So, if you are driven by a passion for climate advocacy, you should consider investing in a climate-themed ETF. If tech is your forte, consider an ETF that tracks that sector. In doing so, you are investing in what you are passionate and knowledgeable about.
Of course, investments have their inherent risks, and the vast ETF market is no different.
First, check the internal composition of the ETF, specifically how its portfolio is weighted.Are you a risk-tolerant investor? -- than consider ETFs that heavily weigh stocks (1). Risk-averse? -- try ETFs that feature low-risk bonds. By checking how a portfolio is weighted, you can get a high-level overview of how well an ETF matches your risk tolerance. Also consider how popular your ETF of choice is. Generally, the more popular with investors an ETF is, the more likely the fund is effectively managed and safe for investors (2).
The same criteria apply to choosing a playlist: What do you value? What are your interests? What is your risk tolerance? Making smart investments is all about looking under the hood before you put your money in. But beyond that, smart investments are made by people who invest in what they believe in.
Have you wanted to invest in stocks (companies) building in the metaverse (future of the internet)?
As individual investors, it’s important for us to keep ourselves updated on the latest market news, industry trends, and what are things those other investors are thinking about. Here at Alinea, we strive to make investment easier by creating playlists for investing. Investment playlists help individual investors like us get broader industry exposure with a customizable, low-risk experience. This blog shows our top 5 best investing podcasts according to us.
Feeling uninspired to invest? Nervous about what to do with your money? Here is a collection of inspiring financial freedom quotes that illustrate the value and freedom of being financially active to get you back on your feet and ready to invest in what you believe in.
Inherent to life are a variety of paradoxes. One of which include: the fact that investing is the most powerful for the people who stay in the market the longest. However, youth and GenZ’ers are not often taught the power of investing in classrooms, at least in my experience and in conversations I've held with female friends.
What are ETFs? An ETF is a collection of hundreds or thousands of stocks or bonds, managed by experts, in a single fund that trades on major stock exchanges like the New York Stock Exchange and NASDAQ.
Hey there, it’s Anam Lakhani and Eve Halimi, and we’re the co-founders of Alinea Invest.
Giveaway! From Monday the 21st to Friday the 25th of February we’re giving out $250 every day to a lucky winner.
The 50/30/20 rule makes saving easy, realistic, and applicable. This rule tells you exactly how much you should be budgeting for your living costs and savings on a monthly basis.