The service allows E*TRADE’s brokerage customers to purchase and trade ready-made portfolios of shares in dollar-denominations. The stock baskets combine attributes of a mutual fund, such as diversification and convenience, with those of a brokerage account, such as direct stock ownership.
S&P will develop 21 baskets for the platform including:
- five index-based baskets
- 10 sector-based baskets, and
- six investment-style baskets
Analysts from Standard & Poor’s will select the stocks in each basket employing screening processes that involve rules-based quantitative investment disciplines.