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


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.