Exploring the Benefits of Investing with Stash Investing can be a great way to grow your financial portfolio, and with Stash’s investing account you can choose from a large selection of ETFs and individual stocks starting from the entry tier. It's important to understand the various types of investments available, and the risks and returns associated with them.
Starting with the entry-level tier, ETFs and individual stocks offer a low-risk option with a moderate to high return. ETFs are exchange-traded funds that track the performance of a particular stock, bond, or commodity index. With ETFs, you can benefit from the diversification of a large portfolio without needing to purchase each stock separately.
While these non-bank products are investments that aren’t insured by the FDIC, they can generally be considered low-risk since they’re backed by the underlying asset. Higher on the investment risk spectrum are bond mutual funds, which are a collection of bonds from different companies. A bond mutual fund can provide higher returns than an ETF, but it also carries more risk.