Much of these innovations were created to satisfy the demands of increasingly savvy investors insisting on lower prices, greater tax efficiency and pricing flexibility. A Folio is a group of stocks that you can purchase in a single transaction. The shares in the Folio are owned by the investor and may be sold individually. Environmentally Responsible You can buy and sell up to 50 stocks in one shot. Orders are placed in dollar amounts, not share amounts with no minimum trade amount.
Investors can own partial or whole shares and there is no minimum to open an account.
Dividends are automatically reinvested as long as greater than a dollar. They're selling investors on low costs and tax efficiency, while comparing the savings against the colossal costs of traditional funds. They fail to compare the low expenses of index funds. Looking beyond the hype, Folios can actually be quite expensive for the average small investor. Folios may look like a bargain for investors accustomed to the price gauging of active funds.