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6 ETF’s for New Investors

Investments on ETF are a good start to growing the tree.

Exchange-Traded Funds (ETFs) are a good way for new Fiscal Investors looking to begin investing in the stock market.  They have a lower risk compared to investing in individual stocks.  ETFs and Mutual Funds are a better way to start investing because of the diversification.  ETFs are cheaper and trade like stocks on an exchange.

Here are several ETFs for investors to consider:

  1. Vanguard Total Stock Market ETF (VTI): This ETF tracks the performance of the CRSP US Total Market Index, which includes large-, mid-, and small-cap stocks across all sectors. It offers a low expense ratio of 0.03%.
  2. iShares Core S&P 500 ETF (IVV): This ETF tracks the performance of the S&P 500 Index, which is composed of 500 large-cap US stocks. It has a low expense ratio of 0.03%.
  3. SPDR S&P 500 ETF Trust (SPY): This is the largest ETF by assets under management and tracks the S&P 500 Index. It has a low expense ratio of 0.09%.
  4. iShares Russell 2000 ETF (IWM): This ETF tracks the performance of the Russell 2000 Index, which is composed of 2,000 small-cap US stocks. It has a low expense ratio of 0.19%.
  5. Invesco QQQ Trust (QQQ): This ETF tracks the performance of the Nasdaq-100 Index, which is composed of 100 large-cap technology and growth-oriented stocks. It has a low expense ratio of 0.20%.
  6. Vanguard Total International Stock ETF (VXUS): This ETF tracks the performance of the FTSE Global All Cap ex US Index, which includes international stocks from both developed and emerging markets. It has a low expense ratio of 0.08%.

They offer diversified exposure to the stock market and can be a good option for investors.  There are many ETFs in the market that have a range of exposure.  The list above are diversified ETFs that follow the basic overall stock market.  There are many other styles of ETFs such as Gold, technology, healthcare, value, growth, bonds, crypto, etc.…. For a long-term investor, the 6 ETFs are a starting point to get invested and grow your portfolio with limited risk.  Note. There is always risk in any investment. 

It’s important to do your own research and consider your investment goals and risk tolerance before making any investment decisions.  You should check with your financial advisor before making any investments to make sure they are appropriate for you! Most importantly, you should be disciplined and educated.  You should always be focused on the long-term and adjust accordingly based on your situation.