When it comes to investing for your child’s future, simplicity and consistency often beat complexity and timing. That’s why UNest uses Exchange-Traded Funds (ETFs) as the foundation for our investment portfolios.
ETFs are a powerful tool for building wealth over time. By design, they offer diversified exposure to a wide range of stocks, bonds, or other assets – often in a single investment. That means when you invest in an ETF, your money isn’t tied to the performance of one company. It’s spread across many, reducing the impact of any single company’s ups or downs.
Why we use ETFs at UNest:
- Diversification: ETFs allow investors to own pieces of hundreds – or even thousands – of companies at once. This built-in diversification helps spread risk and offers exposure to the broader economy.
- Low Fees: Many ETFs come with significantly lower management fees compared to traditional mutual funds. At UNest, we believe your money should be working for you – not eaten away by excessive fees.
- Liquidity and Flexibility: ETFs trade on major stock exchanges just like individual stocks. That makes them easy to buy and sell, while still offering long-term growth potential when held over time.
- Transparency: You can always see exactly what’s inside the ETFs you own. They are straightforward, easy to understand, and follow broad market indexes that are familiar and trusted.
For families investing on behalf of their children, ETFs provide a simple, cost-effective, and reliable way to grow savings over time. Whether you’re contributing $25 a month or making a larger gift during birthdays or holidays, those funds are invested in a well-diversified mix of assets with the potential to grow alongside your child.
Steady, long-term investing works best with the right building blocks – and ETFs give families the tools they need to stay on track.
If you haven’t opened a UTMA custodial account yet, now is a great time to start. Every contribution, no matter how small, helps build a financial foundation your child can use to pursue their dreams – college, a first home, a business, or a strong financial start to adulthood.
Disclaimer: This post is for informational purposes only and does not constitute investment advice. Please consult a licensed financial professional before making any investment decisions.
