What is the difference between a Starter and Essential account?
The difference between Six Park’s Starter and Essential accounts is in the number of ETFs that are used in the investment portfolios.
The Starter portfolios are for balances between $2,000 and $4,999. These portfolios utilise 3-4 ETFs, or asset classes, as we believe that for accounts of that size, there is no real benefit of having more ETFs in the portfolio. Affordability and investment diversification can be achieved well with the ETFs we use for the Starter accounts.
Clients investing $5,000 or more will have Essential portfolios, which use more ETFs (up to eight) since accounts of this size are more easily invested across more ETFs. Clients investing between $2,000 and $5,000 will start off with a Starter account and graduate to the Essential account over time if and when the account is greater than $5,000.
We believe that both types of accounts help people with varying levels of money to invest in a smart and affordable way.