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Stocks & Exchange Traded Products (ETPs)


  • Stocks and ETPs are some of the most common and widely-known investment vehicles
  • Working with the team of Financial Advisors at Genesis Wealth Advisors allows you access to trading stock and ETPs


The team of Financial Advisors at Genesis Wealth Advisors can help take the guesswork out of building a diversified stock portfolio through research and a wide selection of equity solutions.





Stocks are a type of security that give stockholders a share of ownership in a company. Investors buy stocks for various reasons, including:

  • The potential for capital appreciation, which occurs when a stock rises in price
  • The potential for dividend payments, which come when the company distributes some of its earnings to stockholders
  • The ability to vote shares and influence the company


Investing in Equities


Stocks are the growth engines of an investor’s portfolio. While they may potentially yield the greatest results, they also pose the most risk. The primary way to manage the risk of investing in stocks is through diversification and using an asset allocation model to ensure your portfolio is weighted appropriately. 



Exchange Traded Products (ETPs)


ETPs include various investment structures that track an underlying benchmark, index or portfolio of securities. There are two types of ETPs available:

  •  Exchange Traded Funds (ETFs)

 Like mutual funds, ETFs are securities that allow investors to pool their money in a fund that invests in assets such as stocks, bonds and other assets. However, ETFs have key differences compared to mutual funds:

  • Shares are able to trade intra-day on a national exchange at market prices that may vary from net asset value instead of being issued and redeemed at the end of the day at the net asset value.
  • Most ETFs are index-based which seek to track a securities index. Index-based ETFs may often have lower expense ratios.


  • Exchange Traded Notes (ETNs)

 ETNs are a senior, unsecured, unsubordinated debt security issued by an underwriting bank which, similar to other debt securities, has a maturity date and is backed only by the credit of the issuer. ETNs trade on exchanges and promise a return linked to a market index or other benchmark.

The return on an ETN is based on:

  • Price changes, if sold prior to maturity
  • The payment, if any, if the ETN is held to maturity or otherwise redeemed by the issuer


Like other ETPs, the market price of an ETN can differ from its indicative value, sometimes substantially.



Take the Next Steps


Working with the team of Financial Advisors at Genesis Wealth Advisors can help take the guesswork out of building a diversified stock portfolio by ensuring it is tailored to meet your individual needs and financial goals. While your portfolio may not contain 100 percent stocks, your risk tolerance might allow for some mix of stocks for growth. 


There are several ways our team of Financial Advisors can help you invest in equities, including: Individual Stocks, Mutual Funds & ETFs, and Managed Accounts. 


Investing in equities takes on a variety of forms, from purchasing individual stocks to managed accounts. Researching, analyzing and selecting an appropriate mix of stocks based on your need for capital appreciation and/or dividend income can be a complex undertaking. This is where the team of Financial Advisors at Genesis Wealth Advisors can add value. 



To learn more about investing in Equities and other financial services, contact Genesis Wealth Advisors to schedule an appointment today.


Diversification does not guarantee a profit or protect against a loss. All investing involves risk, including the possible loss of principal. There are some risks associated with investing in the stock markets: 1) Systematic risk - also known as market risk, this is the potential for the entire market to decline; 2) Unsystematic risk - the risk that any one stock may go down in value, independent of the stock market as a whole. This also incorporates business risk and event risk; and 3) Opportunity risk and liquidity risk. An exchange-traded fund (ETF) is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETFs are typically registered as unit investment trusts (UITs) or open-end investment companies whose shares represent an interest in a portfolio of securities that track an underlying benchmark or index. Some ETFs that invest in commodities, currencies or commodity- or currency-based instruments are not registered as investment companies. Unlike traditional UITs or mutual funds, shares of ETFs typically trade throughout the day on an exchange at prices established by the market. These ETFs are not managed by the issuer. Investors must buy or sell ETF shares in the secondary market with the assistance of a stockbroker. In doing so, the investor will incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling. An ETN is more like a bond. It's an unsecured debt note issued by an institution. Just like with a bond, an ETN can be held to maturity, bought or sold at will, and if the underwriter (usually a bank) were to go bankrupt, the investor would risk a total default. The bond market is volatile and carries interest rate, inflation, liquidity and call risks. As interest rates rise, bond prices usually fall, and vice versa. Change in credit quality of the issuer may lead to default or lower security prices. Any bond sold or redeemed prior to maturity may be subject to loss.