Getting started with investing can be absolutely terrifying. I remember the first time I opened up my investment account, I hadn’t the faintest idea what I was doing. What’s a ticker symbol? What do all of these charts mean? What’s the difference between a Mutual Fund and an ETF? Am I really expected to comb through the financial statements of every single company I invest in?
All of these questions remain even as you gain more experience. Hand-picking stocks is incredibly boring, time-consuming, and (most importantly) expensive. There are so many companies on the US stock exchange that choosing just a handful to invest in requires a large amount of time and effort. But what if I told you there’s a way to curate a profitable, stable portfolio, with just a single investment?
“What company could possibly give me all that?” You might be thinking. It’s called the DriveWealth ICE 100 Index ETF. I know, the name’s a mouthful, so from here on I’ll just be referring to it as the CETF.
What on Earth is a CETF?
CETF is an ETF. So then, what’s an ETF?
An ETF (formally known as an Exchange Traded Fund) is a fund in which investors give their money to a team of investment analysts, who then curate a portfolio of stock investments based on the fund’s goals and the investors’ preferences.
Essentially, you’re sending money to a group of fund managers, and they take that money and invest small amounts of it across a bunch of different companies in a bunch of different market sectors. The rate of return on your investment is dependent on the average growth rate of all the companies the ETF invests in, instead of just a single company.
Why Choose CETF Over Other ETFs?
What sets CETF apart is that it doesn’t invest in individual companies – it invests in other ETFs. It’s the ETF of ETFs, if you will. Specifically, its investments track an index of the top 100 ETFs listed in the US. This comes with a number of advantages:
- Reduced Volatility
- ETFs are already less risky / volatile than investing in singular stocks because they spread investments across a large basket of companies. This way, if a single company fails, the others will still keep the ETF price stable.
- CETF doesn’t just invest in a basket of companies – it invests in a basket of baskets. This leads to even more diversification and lower volatility.
- Broad range of sectors and industries
- By targeting ETFs across the entire US market, almost every industry will be covered.
- More diversified than the S&P 500
Not to mention, it’s an incredibly accessible investment for beginners. CETF is a zero fund:
- Zero minimum investment
- Zero exit fees
- Zero monitoring
It’s the perfect way to diversify your portfolio without the hassle of hand-picking all of your own investments!
Shown below is a graph displaying the composition of CETFs investments based on sector and asset type, as well as a list of all investments based on their market capitalization.
How Can I Invest?
CETF is available to all Stockal users, no matter what plan you have. In the age of infinite choices, we have chosen one asset which stands out above the rest. Navigate the waters of US investing with this simple yet diversified investment which is designed to be ignored. Make your money work for you, not the other way around.
So log in and quickly diversify your portfolio today!