The 5 Best Places to Purchase ETFs
for Black Families
It doesn’t matter if you’re new to the investing world or a seasoned pro, chances are you’ve heard of ETFs. What are they? ETFs, or exchange-traded funds, are like mutual funds, but are more flexible when it comes to trading. Like mutual funds, their stocks are diversified, however, you do not need to choose individual stocks. Unlike mutual funds, ETFs can be traded throughout the day whenever the stock market is open and they generally have lower fees, including commission-free trading. This makes ETFs more fluid than mutual funds and with less risk than individual stocks. All these factors come together to make ETFs incredibly attractive to investors. Let’s take a look at the best places to purchase them.
Charles Schwab is a favorite for purchasing ETFs due to their zero-commission rate on trading, not only on their own offered ETFs, but also across the board with all ETFs you may own. Charles Schwab also loves to educate their investors and has various resources to do so, including information on performance over time and any applicable fees. This allows you to make your best informed decision when you’re ready to make your purchase.
This list wouldn’t be complete without Fidelity, the investment titan in mutual funds, ETFs, and retirement funds. Fidelity offers no commission on any ETFs available for investors, which makes them as attractive as Charles Schwab. An advantage they have is their search tool for ETFs, sorting them according to the criteria you might wish to purchase. This criteria might be expense ratio, company size, or fund size. You’ll also be able to track your portfolio from Fidelity’s mobile app, which allows you to trade your ETFs on the go.
Another investing giant on our list is TD Ameritrade, who also offers their ETFs at a zero commission rate. TD Ameritrade, however, does not require a minimum balance. This brokerage offers an ETF screener tool which allows you to search for funds that might match your existing portfolio, or meet with your investment goals. It is of note, however, to mention that TD Ameritrade has been purchased by Charles Schwab. Their funds will roll over into Charles Schwab at some point in 2023 so now’s the time to purchase.
It’s no surprise that Vanguard is also on our list. This brokerage is well-known and well-loved throughout the investment community and also offers ETFs at no trading cost on their platform. One of the biggest perks of Vanguard is they allow you to compare ETFs with each other regarding passive or active management style, expense ratios, and much more. They also offer planning tools to help you get your portfolio in tip-top shape.
Ally Invest is an excellent choice for ETFs if you already do your banking through Ally Bank. This allows for easy and efficient trading and connects your portfolio with your bank account. They also offer zero commission ETFs and allow you to screen them for various interests you might have, such as ETFs in the tech industry, sustainable ETFs, or currency ETFs. There is no fee to open a brokerage account through Ally Invest.
These five companies are a sure bet when looking into purchasing ETFs and will help you to be well on your way to financial freedom.
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