InvestUSA

Downloading our apps is your first step to potentially saving thousands of dollars on investment fees and learning overall financial management concepts. Utilize these easy-to-use apps to save time, learn how to diversify your portfolio, pay less income tax, reduce investment fees, and create your own perfect retirement plan. Albert Einstein once said, “Everything should be made as simple as possible, but not simpler.” In this vein, I have created apps to solve financial problems that almost every human will encounter. Your biggest enemy is high fees. By making a one-time purchase of these inexpensive apps, you’ll have the recommendations of a financial planner for the rest of your life. When you manage your investments with an online brokerage, your savings will be dramatic.

An ETF Portfolio Builder for Americans

For investors wanting to build an ETF portfolio, the construction work just got easier. InvestUSA is an ETF portfolio builder that can help investors learn how to start constructing a diversified portfolio with just ETFs. With thousands of affordable ETFs covering all sectors, investors can create a complete investment portfolio using only ETFs. This tool is for newer investors looking to build an ETF Portfolio. To execute your portfolio, you need to choose an ETF for each asset class and purchase the ETFs through your broker. Customize a personal retirement portfolio. Managing your investments provides a valuable learning experience, allowing you to deepen your understanding of financial markets, investment strategies, and risk management techniques.

• Assesses Risk Tolerance: Selects equities to fixed income balance
• Determines Asset Mix: Build a risk-adjusted retirement portfolio
• Recommends Investments: Buy exchange-traded funds (ETFs)

InvestUSA Portfolio Construction

Building a well-diversified investment portfolio is essential for balancing risk and return while aligning with your financial goals. Portfolio construction involves selecting a mix of asset classes that work together to reduce volatility, generate income, and provide long-term growth. By incorporating equities, bonds, commodities, and cash equivalents, investors can create a portfolio that suits their risk tolerance and time horizon.

What is an Emerging Markets Equity ETF?

An Emerging Markets ETF is a type of investment fund that tracks a basket of stocks from developing economies, also known as emerging markets. These funds provide investors with exposure to high-growth regions such as China, India, Brazil, South Africa, and other developing nations, without the need to buy individual stocks in these markets.

• Higher Growth Potential: Emerging markets often have stronger economic growth rates compared to developed markets.
• Liquidity: Traded on major stock exchanges, making it easier to buy and sell compared to traditional mutual funds.
• Higher Volatility & Risk: Prone to geopolitical risks, currency fluctuations, and regulatory changes.
• Diversification: Spreads risk across multiple companies and countries within emerging markets.

What is an International Equity ETF?

An International Equity ETF invests in stocks or other assets from countries outside of the investor’s home country, providing global exposure and diversification. These ETFs allow investors to participate in foreign markets without directly purchasing international stocks.

• Diversification: Reduces risk by spreading investments across multiple economies.
• Access to Growth Markets: Exposure to high-growth economies outside the U.S.
• Currency Diversification: Reduces dependence on a single currency (e.g., the U.S. dollar).

What is a US Sector Equity ETF?

A U.S. Sector Equity ETF is a type of ETF that focuses on a specific sector of the U.S. economy, such as technology, healthcare, or energy. These ETFs allow investors to gain targeted exposure to industries that may outperform the broader market at different times.

• Tactical Investing: Focus on high-performing sectors based on economic trends.
• Hedge Against Market Cycles: Defensive sectors (e.g., healthcare, utilities) can provide stability during downturns.
• Growth Potential: Technology and consumer discretionary sectors can outperform during bull markets.
• Industry-Specific Exposure: Invests in companies within a particular sector.
• Diversification Within the Sector: Holds multiple companies within that sector to spread risk.
• Liquidity & Cost Efficiency: Traded on major stock exchanges like regular stocks, often with lower expense ratios than actively managed funds.
• Cyclicality & Economic Sensitivity: Different sectors perform better in different economic cycles.

What is a US Small & Mid-Cap Equity ETF?

A U.S. Small & Mid-Cap Equity ETF is an exchange-traded fund that invests in small-cap and mid-cap stocks based in the United States. These ETFs provide exposure to companies with smaller market capitalizations, which often have higher growth potential but also come with increased volatility.

• Small Cap Company: Companies with a market cap of $300 million to $2 billion.
• Mid-Cap Company: Companies with a market cap of $2 billion to $10 billion.
• Higher Long-Term Returns: Historically, small and mid-cap stocks have outperformed large caps over long periods.
• More Growth Potential: Many small and mid-sized companies are in expansion phases.
• Diversification from Large Caps: Helps balance a portfolio that may be too focused on large-cap stocks.
• Higher Growth Potential: Smaller companies can grow faster than large corporations.
• Diversification: Reduces risk by holding a basket of small- and mid-cap stocks.
• Increased Volatility: More sensitive to economic conditions compared to large caps.

What is a US Large Cap Equity ETF?

A U.S. Large-Cap Equity ETF is an exchange-traded fund that invests in large-cap stocks, typically companies with a market capitalization of $10 billion or more. These ETFs provide broad exposure to some of the biggest and most established companies in the U.S. stock market, offering investors stability, steady growth, and lower volatility compared to small- and mid-cap stocks.

• Steady Long-Term Growth: Large-cap companies dominate their industries and generate consistent returns.
• Good Core Investment: A strong foundation for any diversified portfolio.
• Dividend Potential: Many large-cap companies pay reliable dividends.
• Stability & Lower Volatility: Large-cap companies tend to be more resilient during economic downturns.
• Consistent Returns: These companies often generate strong revenue, profits, and dividends.
• Diversification: Many large-cap ETFs track major indices, offering exposure to multiple industries.

What is a Foreign Bond ETF?

A Foreign Bond ETF is an exchange-traded fund that invests in bonds issued by governments, corporations, or other entities outside the investor’s home country. These ETFs provide international fixed-income exposure, offering diversification, potential yield opportunities, and currency exposure.

• Diversification: Helps balance a portfolio that may be too focused on domestic bonds.
• Higher Yields: Some foreign bonds offer better yields than U.S. Treasuries.
• Hedge Against U.S. Market Risks: Protects against potential downturns in domestic markets.
• Global Diversification: Reduces reliance on domestic bonds and spreads risk across different economies.
• Interest Rate Diversification: Different countries have varying central bank policies, which can impact bond performance.
• Currency Exposure: Some foreign bonds are denominated in foreign currencies, which can benefit from exchange rate fluctuations (or be hedged to avoid them).
• Different Risk Profiles: Developed market bonds tend to be lower risk, while emerging market bonds offer higher yields with more volatility.

What is a Corporate Bond ETF?

A Corporate Bond ETF is an exchange-traded fund that invests in corporate bonds issued by companies rather than governments. These ETFs provide fixed-income investors with diversified exposure to corporate debt, offering potentially higher yields than government bonds but with slightly higher credit risk.

• Higher Yields: Corporate bonds generally pay higher interest than government bonds.
• Diversification: ETFs hold bonds from multiple companies, reducing the risk of default from any single issuer.
• Liquidity: Easier to buy and sell than individual corporate bonds.
• Varied Credit Quality: Investors can choose between investment-grade (lower risk) and high-yield (junk) bonds (higher risk, higher return).
• Steady Income: Great for income-focused investors.
• Higher Yields Than Treasuries: More return potential than U.S. government bonds.
• Diversification: Reduces exposure to a single corporate bond default.
• Lower Cost vs. Individual Bonds: ETFs allow exposure without needing to buy individual bonds with high minimum investments.

What is a Government Bond ETF?

A Government Bond ETF is an exchange-traded fund that invests in bonds issued by national governments, such as U.S. Treasury bonds or sovereign bonds from other countries. These ETFs provide investors with stable income, low credit risk, and portfolio diversification, making them popular among conservative and income-focused investors.

• Low Credit Risk: Government bonds, especially from stable countries like the U.S., are considered safe investments.
• Regular Interest Payments: Bonds provide periodic coupon payments, offering consistent income.
• Diversification: Helps balance risk in a portfolio, especially during stock market downturns.
• Different Maturity Options: Short-term, intermediate-term, and long-term government bond ETFs are available.
• Interest Rate Sensitivity: Longer-term bonds are more affected by interest rate changes.
• Stability & Lower Risk: Government bonds, especially U.S. Treasuries, are among the safest investments.
• Income Generation: Regular interest payments provide a steady income stream.
• Inflation Protection: TIPS ETFs help protect against rising prices.
• Diversification: Reduces risk when combined with stocks and corporate bonds.

What is a Commodity ETF?

A Commodity ETF is an exchange-traded fund that invests in physical commodities, futures contracts, or commodity-related equities. These ETFs allow investors to gain exposure to raw materials like gold, silver, oil, natural gas, agriculture, and industrial metals without needing to directly own or store the physical assets.

• Diversification: Helps hedge against stock market volatility by adding exposure to alternative assets.
• Inflation Protection: Commodities often rise in value during inflationary periods (e.g., gold and oil).
• Exposure to Global Demand: Commodity prices are influenced by global supply and demand, making them independent of stock market movements.
• Easy Access to Commodity Markets: Investors can trade commodities without needing futures contracts or physical storage.
• Inflation Hedge: Commodities tend to rise when inflation increases.
• Portfolio Diversification: Low correlation with traditional stock and bond markets.
• Exposure to Global Economic Trends: Rising demand for energy, metals, and food can boost prices.
• Alternative Investment Option: Adds balance to portfolios that are heavily stock-focused.

What is a Money Market ETF?

A Money Market ETF is an exchange-traded fund that invests in short-term, high-quality, low-risk debt instruments, such as Treasury bills (T-bills), commercial paper, and certificates of deposit (CDs). These ETFs aim to provide stability, liquidity, and modest income, making them an excellent option for conservative investors or those looking to park cash temporarily.

• Low Risk: Invests in government-backed or high-quality corporate short-term debt.
• Liquidity: Easily tradable on stock exchanges, making them more flexible than traditional money market funds.
• Stable Returns: Designed to provide steady (but low) interest income.
• Interest Rate Sensitivity: Short-term duration minimizes interest rate risk compared to longer-term bonds.
• Safe Haven for Cash: Great for investors looking to preserve capital often yielding higher than traditional savings accounts.
• Portfolio Diversification: Reduces overall portfolio risk by adding low-volatility assets.