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The White House announced $623 million in new grants to improve electric vehicle charging infrastructure.

Investing can look very different from person to person. Everyone has different financial goals, limitations, and risk tolerances.

Professional investors might say they “express a view” on the market with the positions in their portfolio. But if you think you’re not a big enough fish to look at big themes in your investments, think again.

Thematic investing, usually through exchange traded funds, or ETFs, allows you to make even a small, targeted bet on a specific trend, such as artificial intelligence, or clean energy.

The benefits of thematic investing is that you can gain access to a specific sector or trend. On the flipside, thematic ETFs’ narrow focus could also mean that they underperform the broader market.

Thematic ETFs move away from the idea of index investing, which can give you very broad exposure to an asset class or sector.

How ETFs May Fit into Your Portfolio

If you’ve ever heard of investing in a fund that tracks the broader stock market, whoever you were speaking with may have been referring to an ETF, or exchange traded fund.

An ETF bundles assets into one product that you can buy or sell on the market. That’s the beauty of ETFs, they trade just like stocks do but encompass more than just the shares of one company. They’re structured differently than mutual funds, and average lower fees, even though a brokerage may still charge commissions on your trades.

ETFs are also generally passive investments, because they just mirror the performance of an index or sector, such as the S&P 500, or tech.

There’s likely an ETF out there for every type of investor, whether you’re looking at a particular market, sector, or theme. If you’re just getting started with this type of investment, do your research, and be choosy when it comes to which ETF will best serve you on your path to reaching your financial goals.

Get started when you open an investment account with SoFi Invest.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

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Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

Only offers made via ACH are eligible for the match. ACATs, wires, and rollovers are not included. Offer ends 12/31/23.

The start of a new year is a great time to evaluate your career goals and what it will take to achieve them.

December inflation data adds uncertainty to expected Fed rate cutting path.

If you’re thinking about starting a family, the question of just how much it might cost has probably crossed your mind.

There are the countless diapers and burp cloths needed for newborn life, and the seemingly unlimited amount of fresh fruit a toddler will want to consume. But the biggest expense of having kids is no doubt child care.

Child-care costs may vary widely depending on where you live and what type of care you choose. But unless you can get the grandparents involved, be prepared for a hefty bill: 51% of parents who responded to Care.com’s 2022 Cost of Care Survey said they spent more than 20% of their household income on child care every year. Ouch.

For prospective parents, this means drawing up a budget might be in order. Know how much money you have coming in every month to determine what kind of care may be feasible for your household.

For help with the necessities of the first years, consider being specific with registries and wishes so that your loved ones can help you in meaningful and useful ways. Hand-me-downs and second-hand purchases can also help you save money.

Congrats on the Baby, But How Will You Pay for College?

It might be years until your little one goes to college, but that shouldn’t stop you from thinking about how to fund it.

College education in the U.S. isn’t cheap, and as with all big expenses, it pays off to start stashing away money early. Putting it in a 529 plan (also known as a “qualified tuition plan”) is a tax-advantaged way to save for education costs.

There are two types of 529 plans: prepaid tuition plans, which allow you to prepay tuition and fees at certain colleges and universities at today’s prices, and education savings plan, which is a more general savings vehicle for educational expenses. You can contribute at whatever cadence works for you, deposit a lump sum, or let extended family members pay into it.

It is even possible to change the beneficiary of a 529 plan to another eligible family member, for example, if one kid receives a scholarship.

All this may sound too far away if you’ve just had a baby, or are still awaiting the arrival of a new family member. But make no mistake, saving early, and getting your ducks in a row can set you, and your family, up for financial security in the future.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

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