The Smartest Vanguard ETF to Buy With $1,000 Right Now
If you are just starting out looking to invest and have a limited amount of money, you may be wondering where the best place is to start. Instead of investing in individual stocks, I'd suggest beginning with an exchange-traded fund (ETF). ETFs are a portfolio of investments, so they give you instant diversity as opposed to investing in a single company.For beginner investors and seasoned ones too, I like ETFs from investment company Vanguard. It is the king of index funds and has long been known for its low fees. Since ETFs include a portfolio of companies, they have expense ratios attached to them that the investment company charges for its services. These fees are deducted daily and reflected in the performance of the ETFs.Even a seemingly low expense ratio of 1% can have a major impact on returns over time. In a study by the Securities Exchange Commission (SEC) study, a $100,000 investment with a 4% annual return that is reduced by a 1% expense ratio returns around $30,000 less than an investment with a 0.25% expense ratio over a 20-year period. Continue reading
If you are just starting out looking to invest and have a limited amount of money, you may be wondering where the best place is to start. Instead of investing in individual stocks, I'd suggest beginning with an exchange-traded fund (ETF). ETFs are a portfolio of investments, so they give you instant diversity as opposed to investing in a single company.
For beginner investors and seasoned ones too, I like ETFs from investment company Vanguard. It is the king of index funds and has long been known for its low fees. Since ETFs include a portfolio of companies, they have expense ratios attached to them that the investment company charges for its services. These fees are deducted daily and reflected in the performance of the ETFs.
Even a seemingly low expense ratio of 1% can have a major impact on returns over time. In a study by the Securities Exchange Commission (SEC) study, a $100,000 investment with a 4% annual return that is reduced by a 1% expense ratio returns around $30,000 less than an investment with a 0.25% expense ratio over a 20-year period.
