A fractional share is a portion of one full-share. Normally, it cannot be bought from the market, but it might end up being part of your financial portfolio due to stock splits, dividends, or reinvestment plans.
The best way to buy a fractional share is through ETFs. When you invest in a portfolio of Exchange-Traded Funds (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 bonds. Since ETFs trade on the stock market, buying a unit is as simple as buying a share in a company.
When you invest with Wealthface, you can now choose to buy fractional shares and fractional ETFs. Our engine will help you buy high-value shares for less money.
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. Here is where Wealthface steps in and makes the market equally accessible to all types of investors, no matter what their social background or financial goals are. Investors can now buy any shares or ETFs, no matter how much money they hold in their accounts.
Using our Nobel Prize-winning algorithm, we can create a diversified portfolio that will include fractional ETFs. Our engine is built in a way that offers fractional shares through ETFs in an ethical way within a non-biased investment solution to maintain the diversity of your portfolio.
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 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.