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Guide on How to Buy ETFs on SoFi Invest

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Buying ETFs on SoFi: A Guide
Exchange-traded funds (ETFs) may be unfamiliar to you if you’re just starting out in the investing world. This is a common way for investors to acquire a large number of equities all at once. Exchange-Traded Funds (ETFs) are a type of investment vehicle that combines and distributes ownership of multiple underlying assets (rather than a single company) in the form of shares. Thus, with only one purchase, an investor might greatly increase his or her portfolio’s diversity with a variety of different types of stocks or bonds by buying ETFs on SoFi. If you want to know how to buy ETFs on SoFi Invest, read on.

What Are ETFs?

These funds operate very similarly to mutual funds but do not come from the same fund family. Mutual funds are different from ETFs in that they cost more and have more stringent selling requirements. Unlike mutual funds, which can only be exchanged once the market closes for the day, ETFs can be bought and sold throughout the day. Stock exchange-traded funds, bond exchange-traded funds, commodity exchange-traded funds, foreign exchange-traded funds, emerging market exchange-traded funds, and sector exchange-traded funds are just a few of the numerous ETF varieties available. Liquidity, a variety of investment opportunities, portfolio diversification, and low transaction costs are just a few of the reasons to consider buying ETFs on SoFi. However, similar to trading any stock, you run the risk of losing money while trading ETFs if the market declines.

How to Trade ETFs

Do you want to know how to buy ETFs on SoFi Invest? First, you must have an active and funded SoFi Invest account in order to trade ETFs on the platform. Make use of both technical analysis and fundamental analysis to formulate a trading strategy, just like you would with any other stock investment. You can place a market order or a limit order to buy or sell an ETF on the SoFi Invest dashboard. While limit orders are placed once a certain threshold or price range is fulfilled, the system executes market orders at the asset’s current trading price. SoFi Invest has ETF packages for investors to choose from based on broad categories, including “hot companies,” “sectors” like energy or technology, and “themes.” To get started buying ETFs on SoFi, simply click on one that is available, just as you would a stock. Although most trades on SoFi are commission-free, users should be aware that if they use an external broker, ETFs may incur brokerage fees. Be aware that many guides on how to buy ETFs on SoFi Invest do not often mention this.


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Summary

In the past, the traditional approach to investing in ETFs has been a hands-off, buy-and-hold method. Nowadays, however, investors consider exchange-traded funds less as a long-term investment and more as a tool to instantly diversify a portfolio. The prudent investor will explore and study any assets to add to a portfolio, including ETFs, and will be careful with any financial investment. A wide range of exchange traded funds are available on SoFi Invest, including many popular bundles that are already intelligently diversified and auto-rebalance when necessary. Those who want to know how to buy ETFs on SoFi Invest can take advantage of the many guides on SoFi’s website to get started.

FAQs

1. Does SoFi charge any additional costs for trading ETFs?

Although SoFi Invest does not impose any transaction fees, any ETFs purchased through a broker that does charge commissions will incur such fees. Additionally, maintenance costs for ETFs are typically a percentage of the fund’s value annually. Investors should check the fees associated with a given ETF before making a purchase.

2. Is it possible to trade ETFs using any of SoFi’s account types?

Any of SoFi Invest’s accounts, active or automated, as well as IRAs, can have ETFs added to them.



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The content of this website is for informational purposes only and does not represent investment advice, or an offer or solicitation to buy or sell any security, investment, or product. Investors are encouraged to do their own due diligence, and, if necessary, consult professional advising before making any investment decisions. Investing involves a high degree of risk, and financial losses may occur.


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