ETFs may be a good financial resolution
OUT WITH THE OLD, in with the new.
Why not begin 2010 with some new habits,
starting with an easier and more disciplined
approach to accumulating wealth?
ShareBuilder should be a familiar name
for longtime readers of The Connection. Since
2002, many Costco members have taken
advantage of the online brokerage services
provided by ShareBuilder, including their
long-term investment approach, which allows
the purchase of fractional shares via recurring
automatic transactions in set dollar amounts.
Automatic investments occur on Tuesdays,
exclusively online. Investment and funding
instructions can be edited up to 5 p.m. (ET) on
the Monday before your purchase. Real-time
trade fees apply to all sales.
More recently, the option to purchase
exchange-traded funds (ETFs) has added
another investment option.
PortfolioBuilder is a free tool to help you
develop an investment profile.
ETFs are essentially a basket of stocks
grouped into one investment that is traded
like a stock. Many ETFs track popular
indexes, such as the Standard & Poor’s 500.
That means the ETF contains a weighted
assortment of some or all of the stocks in the
index, so you can buy into 500 companies,
for example, in just one transaction.
Other ETFs focus on a particular industry or geographic area, such as health and
biotech or China.
ShareBuilder Online Investing provides
an easy way to invest in ETFs and more. Their
free PortfolioBuilder tool can even suggest an
ETF portfolio based on your risk tolerance,
goals and investing strategy.
Here’s how PortfolioBuilder works. Once
you have a ShareBuilder account, log in and
go to the “Research” tab. Then click on the
“Investment Guidance” link in the “Research
The next page has a start button for
PortfolioBuilder. You’ll be guided through a
few screens that help you focus on your financial goals and the level of risk you can tolerate.
Based on the amount you’d like to invest each
month, a suggested portfolio identifies funds
that are suited to the style of investing determined in your profile.
From that point, you can choose to set up
an automatic investment plan based on the
suggestions or file away the information for
additional consideration. There’s no obligation for having used this helpful tool.
Costco members who invest with ShareBuilder Online Investing through Costco get
an account bonus after the first trade, as well
as rebates on many trade commissions.
For more information, go to Costco.com
and enter “SB ETF” in the search box. C
“I HEARD [talk-show host] Dave Ramsey
say that ING is a good company to
invest with, and I just happened to find
ShareBuilder [an ING DIRECT company]
“I like that ShareBuilder is affordable and doesn’t require a huge
commitment to get into it. I’m still just
a dabbler, not a major investor. It’s so
user-friendly for the average person, and
it’s fun to pick stocks, to see what their
averages and grades are. It’s fun
to just play with it. That’s how I got
“My husband and I have made a
commitment about investing this year.
Any time there’s a pay raise or bonus or
tax refund, we’ll be investing that extra
amount in ShareBuilder in addition to
what we normally invest.”
PortfolioBuilder guidance is generated by customers’ stated investing goals and risk tolerance. ShareBuilder makes no representation that any proposed investing plan will achieve any particular investment goal. ShareBuilder is unable to predict market fluctuations that may affect investment value. The investment return and principal value will fluctuate. Upon redemption, shares may be
worth more or less than their original cost.
While each story is a true experience of an actual investor, ShareBuilder does not represent that everyone will have a similar
experience. Results will vary. These stories should not be considered investment advice or a guarantee of future performance.
By opening an account, you become a customer of ShareBuilder. Costco is not a broker and is not a member of any stock
exchange or SIPC and is not facilitating your investment in Costco or other companies. Costco will have no involvement in any
account you establish with ShareBuilder.
ShareBuilder is a registered broker-dealer, member FINRA/SIPC, and is not affiliated with Costco. ShareBuilder is a subsidiary of
ING Bank, fsb.
Securities products are: Not FDIC insured – Not Bank guaranteed – May lose value
From the ShareBuilder
You should carefully consider an
exchange-traded fund’s investment
objectives, risks, charges and expenses
before investing. For this and other
important information, please review
the fund’s prospectus, available from
the fund sponsor or from our ETF pro-
spectus page (