Exchange-Traded Funds

Diversify your portfolio without losing trading flexibility.

While diversification does not ensure against loss, Exchange-traded funds (ETFs) offer diversified exposure to a particular focused area or sector of the market. They combine some of the key benefits of mutual funds (broad diversification, professional management and industry- and sector-specific strategies) with the flexible trading of stocks to provide a typically low-cost, tax-efficient investment option.

Why add ETFs to your portfolio?

  • Because they tend to employ “passive” management strategies (like tracking an index or sector), they typically carry lower fees than mutual funds, ETFs trade like stocks on the open market, which in most cases involves a commission.
  • Like mutual funds, they provide you with built-in diversification
  • Some offer targeted investment strategies to help address specific goals
  • They allow you to enjoy stock-like trading flexibility

Exchange-Traded-Funds values will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost.

The Rise of ETFs

In the 20+ years since coming into existence, ETFs have surged in popularity in the U.S. and their assets are expected to nearly triple over the next few years.1

image showing the rise of exchange-traded funds

Why work with SunTrust to augment your portfolio with ETFs?

  • Gain access to ETFs including many focused on specific sectors, asset classes or investment strategies.
  • Get help with screening, evaluating and monitoring funds from a knowledgeable SunTrust Investment Services advisor (STIS)
  • Access market analysis and insights from SunTrust's Investment Advisory Group  

Learn how our SunTrust SummitView goals-based planning approach can give you a clear view into all your stocks, bonds, retirement and savings accounts, allowing you and your advisor to better align your investments to your goals and objectives.

DISCLAIMERS

1 PwC “2nd Annual Global ETF Survey,” 2015

 

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