Investing in Stocks — What Are The Best ETF Stocks

Investing in Stocks — What Are The Best ETF Stocks

The stock market is not in the best position right now, despite the recent positive turn of events. There has been a massive economic downturn in recent times, owing to the outbreak of the pandemic. The stock market is volatile, unemployment rates have spiked like never before, businesses are being shut down, economies are suffering, and the world is on lockdown. However, it is still possible to win on the market by investing in stocks. This strategy I will be discussing is going to work for over 90% of the investors who use it, and it is way better than hiring a financial adviser, day trading, or picking the companies you may like.

So, do you have a certain amount of money and are thinking, how will I make this money yield more money? Or what do I do to avoid any losses in the stock market if I invest this there? Well, not to worry because this video was made especially for you.

Hello viewers, my name is Antoaneta, and I am happy to welcome you to yet another edition of my blog, where I will be discussing a strategy for investing in stocks. I will also be talking about four potential stocks you can buy in 2020 that would yield profits in the long run.

So, without much ado, let us dive straight into the business of the day.

What is this strategy for investing in stocks?

I use these past successes as indicators of the future places I want to put my money. You can picture index funds as a tracker that tracks the performance of a particular market index. For example, if an investor wants to buy shares in five hundred of the USA’s top companies, how would he or she do it? It may sound impossible due to the number of companies mentioned, the cost of a share from each of the companies, and how the investor will be able to keep track of each of these companies.

This is where index funds come in, Index funding helps the investor to buy one or more shares of this index fund, and it will purchase shares of each of these five hundred companies. See it this way, you are investing in the index funds, and the index funds are investing in these companies.

It is also the principle on which ETFs work. Warren Buffet, who some refer to as one of the smartest investors alive, recognizes index funds as one of the smartest ways to invest in the stock market. Index funds are gaining more popularity than actively managed funds, even though it has been around for many years.

Index funds also do not require any level of expertise. So, if you are not skilled in following the market activities closely, it would be better to invest in the market as a whole, through index funding. Even professionals have a hard time beating the market, so they invest in index funds themselves.

Also, you do not lose any money on high fees. Employing the services of a financial adviser or investor might cost you more, so you get to save that cost with index funding. The average expense ratio of index funds is 0.08%, which is excellent.

Now, let me talk about four top ETF stocks you can buy today and start investing in stocks. The values we are discussing here may have a negative return due to the pandemic, but since we are investing in the long run, there is no need to fear.

Investing in stocks — the best ETFs:

SPDF S&P 500 ETF (SPY)

VANGUARD S&P 500 ETF (VOO)

SCHWAB US DIVIDEND ETF (SCHD)

VANGUARD TOTAL STOCK MARKET ETF (VTI)

Conclusion:

Since buying one share of an ETF fund gives you interests in many companies, I can say it is a form of diversified investment and is safer than investing in stocks from individual companies. I am not saying you should only invest in ETF or not; it is your choice. Start investing now. For more investment tips, make sure to subscribe to my newsletter.

© Lifestyle Tips by Antoaneta

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