Introduction
Stash is an investment app that allows you to invest in a variety of stocks and exchange-traded funds (ETFs). One of the features of Stash is the Smart Portfolio option. In this article, we will discuss what Smart Portfolio is and how it works.
What is Smart Portfolio?
Smart Portfolio is a feature of Stash that allows you to create a diversified investment portfolio with the help of technology. It is a robo-advisor that selects and manages your investments based on your risk tolerance, investment goals, and time horizon.
How does Smart Portfolio work?
When you sign up for Smart Portfolio, you will be asked a series of questions to determine your risk tolerance, investment goals, and time horizon. Based on your answers, Stash will create a personalized investment portfolio for you.
The portfolio will consist of a mix of stocks and ETFs that are diversified across different sectors, asset classes, and geographic regions. Stash will also monitor your portfolio and make adjustments as needed to keep it aligned with your investment goals.
Advantages of Smart Portfolio
There are several advantages of using Smart Portfolio on Stash:
Diversification
Smart Portfolio offers diversification across different sectors, asset classes, and geographic regions. This helps to reduce your overall risk and increase the potential for long-term returns.
Professional Management
Smart Portfolio is managed by a team of investment professionals who use technology to make investment decisions. This takes the emotion out of investing and helps to ensure that your portfolio is aligned with your investment goals.
Low Fees
Smart Portfolio has low fees compared to traditional investment advisors. You will pay an annual fee of 0.25% of your account balance, which is much lower than the fees charged by most mutual funds and ETFs.
Auto Rebalancing
Smart Portfolio will automatically rebalance your portfolio as needed to keep it aligned with your investment goals. This helps to ensure that your portfolio is always diversified and aligned with your risk tolerance and investment goals.
Conclusion
Smart Portfolio is a great option for investors who want a diversified portfolio that is managed by technology. It offers diversification, professional management, low fees, and auto rebalancing. If you are looking for a hassle-free way to invest, Smart Portfolio on Stash may be the right choice for you.
