What is risk tolerance?

The higher your Risk tolerance, the better suited you are to handle your portfolio going up and down in market value

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After answering PortfolioBuilder's questions, it pops up a portfolio of exchange-traded funds (ETFs) that correlates to your level of risk tolerance.

An investor with a low tolerance for risk will receive a more conservative portfolio than an investor with a super high risk tolerance.

Tip: The combination of the instant diversification and low operating costs that ETFs offer can tend to lessen your risk factor.