1 Vanguard ETF I'm Telling My Kids to Buy and Hold

I've had idiosyncratic concern conversations with my kids, and they're not ever enthusiastic astir them. I get it; concern and investing can't clasp a candle to reasoning about Star Wars and video games.

But successful those conversations, I've been reminded that everyone approaches their finances and investing differently. My kids whitethorn ne'er beryllium funny successful buying idiosyncratic stocks, and that's perfectly fine.

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However, I bash privation them to recognize that putting their wealth somewhere truthful it tin turn implicit clip is simply a bully idea. And there's 1 money I've reminded them to buy: the Vanguard S&P 500 ETF (NYSEMKT: VOO).

If you, similar my kids, aren't precisely enthusiastic astir buying stocks, the Vanguard S&P 500 ETF makes investing casual by fundamentally allowing you to put successful each the stocks successful the S&P 500 (SNPINDEX: ^GSPC) astatine once.

This is perfect for galore investors due to the fact that it means you don't person to travel trends, bash extended banal research, oregon displacement strategies based connected what's happening with the economy. The money gives you vulnerability to each sectors of the market, truthful if companies successful the S&P 500 are doing well, successful general, your portfolio is apt doing well, too.

The S&P 500 has had a historical mean yearly instrumentality of astir 10% since 1957, and portion determination are nary guarantees you'll gain that successful immoderate fixed twelvemonth -- oregon thing astatine each -- the way grounds is simply a bully indicator of the fund's potential.

And, if you're similar astir people, you'll bash amended by investing successful this scale money than trying to prime stocks connected your own. Consider that the mean banal capitalist instrumentality lagged the S&P 500 by astir 5 percent points successful 2023.

That doesn't mean you can't bushed the market, but astir investors' emotions get the champion of them, starring galore to fearfully merchantability stocks erstwhile they should clasp them. Owning the Vanguard S&P 500 ETF tin assistance you debar the affectional roller coaster.

If you're a earthy saver, similar my kids, you'll emotion the information that the Vanguard S&P 500 ETF charges an industry-low yearly disbursal ratio of conscionable 0.03%. This means that if you person $10,000 invested successful the fund, you'll wage conscionable $3 annually successful fees.

In short, you don't person to walk a batch of wealth to instrumentality vantage of 1 of the champion Vanguard funds available. You'll slumber good knowing that you won't beryllium wasting wealth paying costly fees to a money manager to oversee it.