Introduction
An exchange-traded funds (ETF) portfolio is a straightforward and flexible investment solution. Typically, such portfolios provide excellent diversification regarding low ongoing expense ratios (Iachini, 2021). A wide range of options exist for building and managing ETF portfolios. Many tools have been created to help investors select the best investment options; some are entirely free. Nonetheless, an analysis needs to be done to understand how helpful free tools can be and what to expect from them. This paper aims to identify the effectiveness of free online tools in ETF portfolio design.
Free Online Tools for Building and Managing ETF Portfolios
An examination of several data sources and the practical application of various investment tools led to the conclusion that free online tools for creating and managing ETF portfolios are good if certain aspects are considered. Indeed, robot advice is free, but a client must pay for investment management transactions (Weinberg, 2014). Services such as Motif, Vanguard, Folio Investing, or E*Trade Financial Corp greatly simplify a person’s work. They give free guides, independently track risk-free offers, and allow an investor to choose suitable options based on a specific investment strategy (Weinberg, 2014).
Indeed, free tools are good for clarifying some basic aspects, but one has to pay for advanced functionality, for example, through premium subscriptions. A large selection of tools will allow people to choose something they like. Moreover, consultations with live experts are still relevant because robots can make mistakes and not take into account several moments at once due to their limited functionality.
Conclusion
In summary, some free online tools are effective and efficient in creating and managing ETF portfolios, but with several caveats. Such tools as Motif, Vanguard, Folio Investing, or E*Trade Financial Corp personalize offers, automatically select profitable assets, and give helpful advice. However, more accurate and reliable predictions and recommendations are possible with paid subscriptions and other types of fees. It is advisable to rely more on living consultants’ words to confirm one’s conclusions and judgments.
References
Iachini, M. (2021). 3 Ways to build an all ETF portfolio. Charles Schwab & Co., Inc. Web.
Weinberg, A.I. (2014). Robot advice for ETFs: We tested free online tools for building and managing an ETF portfolio. The Wall Street Journal. Web.