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Why ETFs Might Be an Ideal Fit for Your Investment Portfolio

 

If you’re feeling overwhelmed by the many choices for your investment portfolio, you’re not alone. There’s a way you can gain exposure to a basket of stocks or bonds, with a professional investment manager overseeing the portfolio. Take a look at Exchange-Traded Funds, or ETFs – an increasingly popular choice for investors.

Here’s why ETFs might be a good fit for your investment portfolio:

  1. Diversification Made Easy: Imagine buying a single basket of fruit instead of picking individual apples, oranges and bananas. That’s the beauty of ETFs: With one purchase, you can own a basket that tracks several stocks, diversified across sectors, industries or countries. The basket can hold dozens, even hundreds of underlying assets. This instant diversification help spread your risk, decreasing risk if one company stumbles. Please note: diversification does not assure a profit or protect against loss in a declining market.
  2. Transparency: With ETFs, what you see is what you get. Holdings in an ETF are, for the most part, publicly available, and the price of the ETF will fluctuate throughout the day, just like individual stocks. This transparency can empower you to make informed decisions about your investments.
  3. Flexibility for Every Investor: There’s an ETF for just about anything you’d like to invest in. From broad market exposure to specific sectors like energy, technology or health care, you can tailor your portfolio to your goals and risk tolerance. Plus, you can easily buy and sell them like individual stocks, on your own or through your financial advisor, offering great flexibility.
  4. Tax Advantages: Compared to other investment vehicles, including mutual funds, ETFs can offer tax benefits due to their efficient structure. They distribute capital gains less frequently, potentially reducing your tax burden.

Remember, ETFs are not without their risks. Stocks and bonds can still go down, and individual holdings within the ETF can underperform. It’s important that you do your own research and choose ETFs that align with your investment goals and risk tolerance.

Even better, talk with a financial advisor who can help you on your journey. A financial advisor can create a diversified portfolio for you, selecting ETFs and other investments to help you achieve your investment goals and objectives.

By taking advantage of the diversification, transparency and flexibility that ETFs offer, you can build a solid foundation for your investment journey and potentially reach your financial goals faster. Start exploring and see if ETFs might be the key to unlocking your investment success.

Disclosure

To determine if this Fund is an appropriate investment for you, carefully consider the Fund’s investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Fund’s prospectus, which may be obtained by calling (800) 994-0755. Please read the prospectus carefully before investing.

Westwood ETFs are distributed by Northern Lights Distributors, LLC (Member FINRA). Northern Lights Distributors and Westwood ETFs (or Westwood Holdings Group, Inc.) are separate and unaffiliated.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice. No representation or warranty is made concerning the accuracy or completeness of any data compiled herein. Any statements non-factual in nature constitute only current opinion, which is subject to change. Any statements concerning financial market trends are based on current market conditions, which will fluctuate.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

Past performance is not indicative of future results. All information provided herein is for informational purposes only and is not intended to be, and should not be interpreted as, an offer, solicitation, or recommendation to buy or sell or otherwise invest in any of the securities/sectors/countries that may be mentioned.

© 2024 Westwood Management Corp.

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The information contained herein represents the views of Westwood Holdings Group, Inc. at a specific point in time and is based on information believed to be reliable. No representation or warranty is made concerning the accuracy or completeness of any data compiled herein. Any statements non-factual in nature constitute only current opinion, which is subject to change. Any statements concerning financial market trends are based on current market conditions, which will fluctuate. Past performance is not indicative of future results. All information provided herein is for informational purposes only and is not intended to be, and should not be interpreted as, an offer, solicitation, or recommendation to buy or sell or otherwise invest in any of the securities/sectors/countries that may be mentioned.