When you start saving with Icon, you’ll first take a simple risk assessment, then choose from a managed portfolio that is designed to help you meet your financial and retirement goals. Portfolios use low fee ETFs and the average fund fees are 0.08%, which is significantly less than the industry average of 1.13%. Icon does not charge investment fees and receives no sales commissions or other fees associated with the selection of funds.
Why use ETFs?
The trade order flexibility of ETFs also gives investors the benefit of making timely investment decisions and placing orders in a variety of ways. Investing in ETF shares has all the trade combinations of investing in common stocks, including limit orders and stop-limit orders. ETFs are also known for being low-cost investment options.
ETFs can be comprised of hundreds or thousands of stocks and bonds. To obtain that type of diversity, an investor would incur a large number of trading transaction costs and be forced to meet some high minimum purchase requirements in a lot of cases. ETFs can be utilized as a way to obtain that diversity at a low cost. ETFs are less expensive than mutual funds because they do not charge 12b-1 fees or commissions. Therefore, fewer operational expenses lead to reduced expense ratios for the investor.