Investors increasingly want more personalization in their portfolios, not only to pursue their financial goals but also to reflect what matters to them most as well.
That’s why one of the most interesting recent trends in finance in our opinion is customized indexing.
Indexes and portfolios can now be designed with an investor’s individual preferences in mind, by including or excluding certain stocks or sectors.
At Interactive Advisors, we believe in transparent, affordable and flexible investing products that help meet your financial targets and reflect your unique values.
The growing interest in customized indexes underscores big advances in financial technology and lower commissions that have made investing more affordable and flexible than ever before.
Index investing, or the buying and holding of a basket of stocks that replicates a benchmark, has been hugely popular for years because of its low cost, transparency and tax efficiency.
Yet, until recently, index investing was an all-or-nothing proposition. An investor had little say in the individual companies that were included in that index. But what if investors could essentially shape their own index fund to invest in?
Customized investing is the latest phase in the evolution of index investing that’s been about offering investors more choice.
At Interactive Advisors, we offer low-cost investing products that can be customized to reflect your values by investing in portfolios seeking to promote certain business behaviors or excluding specific companies or companies engaging in certain activities or businesses investors may not want to support or invest in.
That is why we have developed online tools that allow you to exclude groups of stocks from your portfolioinvestments and facilitate your understanding of the possible impact of such exclusions on your returns.
Interested in companies that promote a clean environment or have clearly defined social justice goals? Want to avoid the tobacco, alcohol, fossil fuel and gun manufacturing sectors? Some of the portfolios we offer may assist you in achieving your investment objectives in these areas.
Just login in to your dashboard to view your options, or call us to get more information.
It’s important to remember that excluding stocks from your portfolio can affect your investments’ performance and you should carefully review important disclosures on the risks on the portfolios you are considering.
At Interactive Advisors, both your financial goals and values matter to us. Let us help you reflect both in your portfolio.
Visit us here and learn more.