A fractional share is a portion of one full-share. Normally, these cannot be bought on the market, but they might end up being part of your financial portfolio due to stock splits, dividends, or reinvestment plans.
The best way to buy fractional shares is through ETFs. When you invest in a portfolio of ETFs made up of stock — you essentially own fractional shares. Exchange-Traded Funds are investments that consist of a large range of investments from different stocks and bonds. Since ETFs trade on the stock market, buying a unit is as simple as buying a company’s share.
Fractional investing with Wealthface allows you to choose to buy fractional shares and fractional ETFs. Our engine will help you buy high-value shares for less money.
What are the benefits of fractional shares?
Many well-known tech stocks, such as Alphabet and Amazon, may be out of reach for certain types of investors, due to their high value of $1,000 per share or more.
It is where Wealthface steps in offering fractional stocks to make the market equally accessible to all types of investors, regardless of financial status. Investors can benefit from fractional trading, and buy any type of shares or ETFs, no matter how much money they hold in their accounts.
How Can I Own a Diversified Portfolio?
Using our Nobel Prize-winning algorithm, we can create a diversified portfolio that will include fractional ETFs. Our engine is built to offer fractional shares through ETFs in an ethical way through a non-biased investment solution to maintain the diversity of your portfolio.
How does a diversified portfolio Work?
Wealthface allows investors to invest in fractional shares in large and reputable companies. You can now buy one-tenth of a share of Facebook for $18, or one-quarter of a share of Apple for about $55.
A fractional share more or less works like a normal share. If a full share goes up in value by 20% in a day, so will the fractional share. Dividends are paid to shareholders according to the number of shares they own. If you only own half a share, you only get half the dividend payment.
We made this possible by teaming up with our preferred broker Drivewealth. They will buy a full share of the desired company and hold on to the remaining fractional share until another investor buys it.
