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What’s Better Than Motifs? Trading Stock and Motifs!

28 August 2015 in Inside Motif

Just because our flagship product is the motif doesn’t mean that is the only way to trade at Motif Investing. You also have the ability to trade individual stocks and exchange traded funds, either to customize an existing motif, or as a standalone position. Here are a few reasons why you might consider individual stock and ETF transactions in addition to trading motifs.

You Transferred It Here

When you fund an account at Motif Investing, you can do it by moving cash or investments from another financial institution. The latter is called an automated customer account transfer, more commonly known as ACAT. This populates your account with whatever investments you decided to keep. If you decide to rebalance your portfolio, you may consider whether it’s time to buy more or sell at least some of these positions.

Your Favorite Motifs Have Something in Common

If you peruse the catalog section of our website for at a least a few minutes, you might find yourself creating a watch list full of motifs. Depending on your specific tastes and goals, you might end up selecting several motifs that happen to include the same stock—which is likeliest with blue-chip stocks. If you find yourself more interested in the performance of that single stock than in the thematic diversification in each of the respective motifs the stock is part of, you might find it more cost effective to simply buy that one stock instead of buying all the motifs the stock appears in. So, which stocks appear in the most themes? Coca-Cola and WalMart are tied, showing up in 12 different motifs apiece.

You Feel Strongly About a Single Company

The same way a motif can reflect a particular value that you find important, a single company might embody something you feel strongly about as well. The epitome of this: stock in the company you work for. Or it could be a stock in your favorite companies to do business with, either in your free time, as a consumer, or when you’re on the job.

Before you click off to explore any of the concepts mentioned above, we ought to remind you that every single one of the scenarios mentioned in this article has an element of risk. The specific types of risks depend on which types of securities you choose to trade. Keeping these possibilities in mind can help you make better informed decisions about your investing.

 

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