2 Vanguard ETFs to Buy With $100 and Hold Forever
While many individual stocks have started to bounce back from this latest downturn, the major market indices, such as the S&P 500 and Nasdaq Composite, continue to trade well below their recent highs. This represents a great opportunity for investors who have been on the sidelines to begin investing.One of the best ways for new investors to get into the market is with exchange-traded funds (ETFs). ETFs trade just like ordinary stocks, and you can buy or sell them throughout the day through a brokerage account. However, each ETF has holdings in several stocks, giving you an instant portfolio. A big advantage of ETFs is that they give you added diversity. They are also a great way to invest if you don't have as much time to research individual stocks.Vanguard ETFs offer a great place to start because the fund operator runs these funds at a low cost to the shareholder. As a fund, ETFs have expense ratios to run the fund. These fees can eat into an investor's returns over time. They are subtracted daily from the net asset value of the ETF so investors don't notice them, but they add up over time. Vanguard's index fund tends to have among the lowest expense ratios out there, making them a great place for people to invest.Continue reading
While many individual stocks have started to bounce back from this latest downturn, the major market indices, such as the S&P 500 and Nasdaq Composite, continue to trade well below their recent highs. This represents a great opportunity for investors who have been on the sidelines to begin investing.
One of the best ways for new investors to get into the market is with exchange-traded funds (ETFs). ETFs trade just like ordinary stocks, and you can buy or sell them throughout the day through a brokerage account. However, each ETF has holdings in several stocks, giving you an instant portfolio. A big advantage of ETFs is that they give you added diversity. They are also a great way to invest if you don't have as much time to research individual stocks.
Vanguard ETFs offer a great place to start because the fund operator runs these funds at a low cost to the shareholder. As a fund, ETFs have expense ratios to run the fund. These fees can eat into an investor's returns over time. They are subtracted daily from the net asset value of the ETF so investors don't notice them, but they add up over time. Vanguard's index fund tends to have among the lowest expense ratios out there, making them a great place for people to invest.
