What are the risks associated with investing in Stock Bundles?

When investing in Stock Bundles, it's important to understand the following risks and considerations:

1. Self-directed vs. Robo Account: Stock Bundles are part of a self-directed account, not a robo-advised account. You're responsible for managing your investments, with no automatic rebalancing or discretionary buying and selling.
2. Market Order Risks: Fractional shares within bundles can only be purchased via market orders, potentially subjecting you to price changes in a volatile market.
3. Dividend and Cash Management: Understand how sweeps work for dividends and uninvested cash. Dividends are not automatically reinvested into the paying stock.
4. Market Events: Be aware of potential events such as:
   • Market or single stock halts
   • Trades placed during pending corporate actions
   • Market-moving news
5. Bundle Composition Changes: A bundle's composition may change over time. Future investments in the same bundle might include different stocks.
6. Individual Stock Risk: While bundles offer some diversification, they still contain individual stocks which carry their own risks.
7. Diversification Risk: Stock Bundles are not as diversified as broad market index funds. Each bundle typically contains 8-20 stocks, which may not provide sufficient diversification to mitigate sector-specific or company-specific risks. This limited diversification could lead to higher volatility or concentrated risk exposure compared to more broadly diversified investment options.
8. Thematic Risk: Many bundles are based on specific themes or sectors. If that theme or sector underperforms, your entire bundle could be negatively affected.
9. Lack of Automatic Rebalancing: Unlike some managed investment products, Stock Bundles are not automatically rebalanced. Over time, this could lead to unintended changes in your portfolio's risk profile or asset allocation.

Remember, all stock investments carry the risk of potential loss. Carefully consider these factors and your personal financial situation before investing in Stock Bundles.

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