Wealth Management Frequently Asked Questions

Investing Services and Glossary of Terms

What is digital investing?

A digital investing service provides access to an online platform that enables you to begin investing for your future with the support of automated tools that build and manage your investment portfolio based on your goals, preferences and risk tolerance.

What is an investment portfolio?

An investment portfolio is a collection of investments that may include stocks, bonds, Exchange Traded Funds, real estate holdings and more.

What is diversification?

Diversification is a risk management strategy of combining a variety of investments within a portfolio.  The rationale is that a portfolio containing a variety of different assets will, on average, yield higher long-term returns and lower the risk of any individual holding.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio.  Diversification does not provide absolute protection against market risk.

What is a fiduciary?

A fiduciary is a person or organization that acts on behalf of a client and is legally and ethically bound to act in the client’s best interest.

What is an Exchange-Traded Fund?

An exchange-traded fund is a type of fund that owns groups of assets like stocks or bonds and is designed to provide portfolio returns in line with a particular index, such as the S&P 500. ETFs can provide you a diversified portfolio and are traded like stocks, making it easier to take advantage of market changes and potential tax-saving opportunities.


An investment in exchange-traded funds (ETFs), structured as a mutual fund or unit investment trust, involves the risk of losing money. An investment in ETFs involves additional risks such as non-diversification, price volatility, competitive industry pressure, international political and economic developments, possible trading halts, and index tracking errors.

What does it mean to rebalance a portfolio?

Rebalancing a portfolio is the process of buying and selling assets within a portfolio to ensure that the portfolio as a whole is still in line with the financial needs and goals of the investor.


Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure profit or protect against a loss.

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member opens in a new windowFINRA/ opens in a new windowSIPC).

Insurance products are offered through LPL or its licensed affiliates. Burke & Herbert Bank and Burke & Herbert Wealth Management are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using Burke & Herbert Wealth Management and may also be employees of Burke & Herbert Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of Burke & Herbert Bank or Burke & Herbert Wealth Management. Securities and insurance offered through LPL or its affiliates are:

Not Insured by FDIC or Any Other Government AgencyNot Bank GuaranteedNot Bank Deposits or ObligationsMay Lose Value

The LPL Registered Representatives associated with this site may discuss and/or transact securities business only with residents of the following states: AL, AK, AZ, CA, CO, DC, DE, FL, GA, HI, IL, KY, LA, MA, MD, ME, MI, MO, NC, NJ, NM, NY, OH, OR, PA, RI, SC, TN, TX, VA, WA, WV.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, Certified Financial Planner™ and federally registered CFP (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

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