All Things Investing
Investing for Beginners
Start With a Plan
Have a clear understanding of your financial goals. This will help you decide what you will invest in and your risk tolerance.
Research
Do your due diligence and research investments that you're considering. This will ensure that you know EXACTLY what you're investing in!
Start Small
Get your feet wet and start small to get into the swing of things. After some time, you can increase your investment size as you gain confidence.
Diversify
Diversify your investments to reduce your risk. Avoid investing in just one asset class or sector. Consider stocks, real estate, crypto and other asset classes.
What Should I Invest In? Stock Market Edition
Index Funds
An index fund is a type of mutual fund that tracks the returns of a stock market index.
Exchange - Traded Funds (ETFs)
An ETF is a type of mutual fund that tracks the returns of a stock market index.
Blue-Chip Stocks
Blue-chip stocks are shares in large, well-established companies that are leaders in their industry.
Dividend Stocks
Dividend stocks are shares in companies that pay regular dividends to shareholders.
Growth Stocks
Growth stocks are shares in companies that are expected to grow faster than the overall market. These stocks are much more volatile.
Index Funds
Index Funds
A basket of different stocks or investments that tracks the overall performance of the stock market, and it can be a good way to invest without having to worry too much about picking individual stocks.
SCHWAB S&P 500 (SWPPX)
This fund tracks the performance of the S&P 500 Index. The fund has a low expense ratio and provides exposure to a broad range of large-cap U.S. companies.
iSHARES RUSSELL 2000 (IWM)
This fund tracks the Russell 2000 Index, which consists of small-cap stocks. It offers exposure to smaller companies that may have greater growth potential but also greater risk.
Invesco QQQ Trust (QQQ)
This fund tracks the NASDAQ-100 Index, which consists of the 100 largest non-financial companies listed on the NASDAQ. It offers exposure to technology and growth-oriented companies.
S&P 500 Top Holdings
IWM Top Holdings
QQQ Top Holdings
ETFs
ETFs
An investment that allows you to buy a bundle of different stocks or other assets all at once, and it will track the performance of a particular market index, commodity or other asset. It's an easy and convenient way to get exposure to a diversified portfolio of investments without having to buy each asset individually.
TERM TO KNOW
Expense Ratio: The fee a fund charges to manage a mutual fund, or an ETF.
Vanguard Total Stock Market (VTI)
This is an ETF that tracks the performance of the CRSP US Total Market Index, which includes stocks of all sizes from across the U.S. equity market. It provides investors with broad exposure to the entire U.S. stock market and has a low expense ratio of 0.03%.
Vanguard Growth (VUG)
This is an ETF that tracks the performance of the CRSP US Large Cap Growth Index. The fund invests in the stocks of large-cap U.S. companies that are expected to have higher growth potential and the index is designed to measure the performance of the growth segment of the U.S. equity market. VUG has a relatively low expense ratio of 0.04%
SPDR Gold Shares ETF (GLD)
GLD is an ETF that tracks the performance of the price of gold bullion. It provides investors with exposure to the price of gold without the need for physical ownership and has an expense ratio of 0.40%
VTI Top Holdings
VUG Top Holdings
Investing in Real Estate with ETFs:
Vanguard Real Estate ETF (VNQ)
This fund tracks the MSCI US Investable Market Real Estate 25/50 Index, which consists of U.S. real estate investment trusts (REITs). It offers exposure to the real estate sector and has a relatively high dividend yield.
VNQ Top Holdings
Simon Property Group, Inc.
An American real estate investment trust that invests in shopping malls, outlet centers, and community/lifestyle centers.
American Tower Corporation
An American real estate investment trust and an owner and operator of wireless and broadcast communications infrastructure in several countries worldwide.
Digital Realty Trust, Inc.
A real estate investment trust that invests in carrier-neutral data centers and provides colocation and peering services.
Prologis, Inc.
A real estate investment trust that invests in logistics facilities.
Dividend Stocks
Dividend Stocks
Dividend stocks are shares of companies that pay out a portion of their profits to their shareholders on a regular basis, kind of like a "thank you" for investing in the company. When you own dividend stocks, you receive a payment, every quarter or year, depending on how often the company pays out its dividends. It's like getting a bonus just for owning the stock!
Growth Stocks
Growth Stocks
Growth stocks are shares in companies that are expected to grow faster than the overall market. These stocks are much more volatile.
Examples of Growth Stocks
Blue-Chip Stocks
Blue-Chip Stocks
Blue-chip stocks are shares in large, well-established companies that are leaders in their industry. When you invest in blue chip stocks, you're essentially investing in the "best of the best" of the stock market.
Examples of Blue-Chip Stocks
Investing with Fractional Shares
*Varies by brokerage.
What Are Fractional Shares?
With fractional shares, instead of buying one whole share, you can invest in a portion of a stock with as little as $1.00*!
Brokerages That Allow Fractional Shares
Investing To Become A Millionaire At Different Ages
