![]() Robinhood and Webull are two popular trading platforms for active investors, boasting easy-to-use mobile investing apps. When you're ready to buy stocks, your first need to open a taxable brokerage account. Before you invest, you should make sure you already have an emergency fund set aside, you've paid off your high-interest debt and you're already contributing to a retirement account (and meeting any 401(k) employer match, if applicable). companies." If you do want to trade meme stocksįor those still itching to trade the next viral stock, invest only with money you can afford to lose. Large Cap Index tracks large capitalization stocks, which the website says, "are considered to be stocks of the largest 500 U.S. Though the fund doesn't technically track the S&P 500, the Fidelity U.S. Its expense ratio is 0.02%, meaning every $10,000 invested costs $2 annually.įor an option with no expense ratio whatsoever, consider the Fidelity ZERO Large Cap Index (FNILX). Of course, past returns do not guarantee future gains.Ĭharles Schwab's S&P 500 Index Fund (SWPPX) is a straightforward option with no investment minimum. Historically, the average annual return for the S&P 500 hovers around 10%. Funds that track the S&P 500 are generally an effective way to earn a good return on your money over time. Once your account is open and funded, you can also choose from a number of different index funds, like an S&P 500 fund, a fund that tracks government bonds or a fund that tracks international stocks. Expense ratios (basically the management costs) for its ETFs and mutual funds are some of the lowest around, with an average of 0.10%, meaning every $10,000 invested costs $10 annually. Vanguard also stands out for its low costs. You can often choose to invest in index funds via your employer-sponsored 401(k), too.Ī broker like Vanguard is a good choice for passive investors who want to hold funds long-term as it doesn't offer many tools for those who are more active traders or interested in short-term trading. To invest in an index fund, you need to open a brokerage account, a traditional IRA or a Roth IRA. ![]() (Of course, all investing involves some amount of risk.) How to invest in an index fund Unlike individual stocks, index investing offers automatic diversification that spreads out your risk so you don't have to worry that you'll lose all your money with one bad trade. Instead of actively trying to find the next hot stock, you're better off with a more hands-off approach of index investing. Investing +More All Investing Best IRA Accounts Best Roth IRA Accounts Best Investing Apps Best Free Stock Trading Platforms Best Robo-Advisors Index Funds Mutual Funds ETFs Bonds Help for Low Credit Scores +More All Help for Low Credit Scores Best Credit Cards for Bad Credit Best Personal Loans for Bad Credit Best Debt Consolidation Loans for Bad Credit Personal Loans if You Don't Have Credit Best Credit Cards for Building Credit Personal Loans for 580 Credit Score Lower Personal Loans for 670 Credit Score or Lower Best Mortgages for Bad Credit Best Hardship Loans How to Boost Your Credit Score Taxes +More All Taxes Best Tax Software Best Tax Software for Small Businesses Tax Refunds Small Business +More All Small Business Best Small Business Savings Accounts Best Small Business Checking Accounts Best Credit Cards for Small Business Best Small Business Loans Best Tax Software for Small Business Personal Finance +More All Personal Finance Best Budgeting Apps Best Expense Tracker Apps Best Money Transfer Apps Best Resale Apps and Sites Buy Now Pay Later (BNPL) Apps Best Debt Relief Best Mortgages for Average Credit Score.Best Loans to Refinance Credit Card Debt.
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